The Real Estate (Regulation and Development) Act 2016 — commonly known as RERA — fundamentally changed how real estate development works in India. Here is what every developer needs to know.
Who Must Register Under RERA?
Every real estate project with a plot area of 500 sq.metres or more, or with more than 8 units, must be registered with the state RERA authority before any marketing or booking can begin. This applies to both residential and commercial projects.
Documents Required for RERA Registration
- Promoter's PAN, Aadhaar and address proof
- Company registration documents (for company promoters)
- Land title documents and encumbrance certificate
- Approved building plans and layout plans
- Commencement certificate from local authority
- Estimated project cost and financial statements
- Details of all agents selling the project
RERA's Key Requirements During Development
- 70% of project funds must be deposited in a dedicated RERA escrow account
- Quarterly updates on project status must be filed with RERA
- All advertisements must carry the RERA registration number
- Changes to layout or specifications require RERA approval
Penalties for Non-Compliance
Marketing or booking a project without RERA registration can result in: up to 10% of project cost as penalty, and imprisonment up to 3 years for repeat violations. Buyers have the right to demand refund plus interest if the developer breaches RERA norms.
All projects listed on Brickwise.space undergo RERA verification. Contact us at 9971116724 for RERA advisory support.