RERA Guide for Home Buyers in India: Registration, Rights, Carpet Area, Escrow, Delay Interest, Complaints and Checks

Before 2016, buying an under-construction flat in India carried high risk of delays, changes in plan and unclear area measurements. The Real Estate (Regulation and Development) Act, 2016 (RERA) brought transparency and accountability. Each state has its own RERA authority and rules. This guide explains your rights and how to use them.

This is general information, not legal, tax or financial advice. Laws, limits and procedures change, and your facts matter. Verify with official sources and consult a qualified lawyer, chartered accountant or adviser before acting.

What RERA does

• Requires registration of most real estate projects and agents with the state RERA authority before advertising or selling.
• Obliges developers to disclose project details, layout, approvals, timelines and financials on the RERA website.
• Mandates sale based on carpet area (the net usable area within walls) instead of the inflated "super built-up area".
• Requires developers to deposit about 70 percent of the money collected from buyers in a separate escrow account used only for that project's construction and land costs.
• Sets penalties for delays and misleading advertising, and provides a faster dispute mechanism through RERA authorities and Appellate Tribunals.

Which projects must register?

Projects with a land area over 500 square metres, or more than eight apartments, generally must register, with exemptions for certain completed projects that already had an occupancy or completion certificate when the Act came into force, and for small renovations. Real estate agents also need registration. Rules vary slightly by state, so check your state's RERA website.

How to check a project before you buy

1. Search the project on your state RERA website using the name or registration number. Confirm that it is registered and the registration is valid.
2. Check the promoter's details, project plan, sanctioned layout, approvals, expected completion date and carpet area of apartments.
3. Review quarterly updates on construction progress and fund usage, which promoters must upload.
4. Look for complaints and orders against the builder, and past project record.
5. Verify land title and encumbrances through a lawyer. Get a title search report. Our home buying checklist covers more.
6. Check that the sale agreement follows the model format prescribed by your state under RERA, including the carpet area and possession date.

Your key rights as a buyer

• Accurate information on approvals, area, price and timeline.
• No change in plans or structural design without consent of at least two-thirds of allottees.
• Limit on booking advance: a promoter cannot take more than 10 percent of the cost as an advance or application fee before signing a registered agreement for sale.
• Timely possession as agreed. If the promoter delays, you can withdraw and claim a refund with interest, or stay in the project and receive interest for every month of delay.
• Interest rate: usually set as a margin over the State Bank of India's highest marginal cost of lending rate (for example, MCLR plus 2 percent), and applies both to the promoter's delay and buyer's payment delay.
• Defect liability: structural defects or poor workmanship reported within five years of possession must be rectified by the promoter free of charge within 30 days.
• Right to carpet area as promised, with compensation if the area is less than advertised.
• Formation of an association and transfer of common areas after completion.

Your obligations as a buyer

Pay instalments on time, as per the agreement, or face interest. Read the agreement carefully before signing, and do not pay in cash. Keep receipts, payment records and communications. Complete home loan formalities promptly. Understand the loan terms in the home loan guide and compute EMI with the EMI calculator.

How to file a RERA complaint

1. Try to resolve the issue by writing to the builder, and keep records.
2. Gather documents: allotment letter, agreement for sale, payment receipts, brochures and advertisements, correspondence and the RERA registration details.
3. Visit the website of your state's RERA authority and find the complaint form (often Form M or similar, depending on the state).
4. Fill in details of the project, promoter, facts and the relief sought (refund, interest, possession, compensation).
5. Pay the nominal fee online or by challan, and submit. Note the complaint number.
6. Attend hearings. Many states hold virtual hearings. Orders can be enforced as arrears of land revenue.
7. Appeals go to the state Real Estate Appellate Tribunal, normally with a pre-deposit when the promoter appeals.

You can also seek remedies in the consumer forum. See consumer complaint guide. The two routes have different rules, and the courts have addressed choice of forum, so seek legal advice.

Red flags

• Builder demands large cash payments or a booking above 10 percent before a registered agreement.
• Project not on the RERA site, or registration expired.
• Heavy discounts or "assured returns" that sound unrealistic.
• Pressure to sign immediately.
• Refusal to give the sanction plan, or area stated only as super built-up area.

Taxes and costs

Under-construction property attracts GST on the apartment price (with rates depending on the category), plus stamp duty and registration charges that vary by state. Ready-to-move properties with an occupancy certificate generally do not attract GST. Check the tax benefits in home loan tax benefits and plan with the mortgage affordability calculator. Consider renting if the numbers do not work, using the rent vs buy calculator.

Frequently asked questions

What is RERA?

The Real Estate (Regulation and Development) Act, 2016, which regulates real estate projects and protects buyers.

What is carpet area?

The net usable floor area within the walls of an apartment, excluding walls and common spaces.

How much advance can a builder take?

Not more than 10 percent before executing a registered agreement for sale.

What if the builder delays possession?

You can claim interest for the delay or withdraw with a refund and interest.

How long is defect liability?

Five years from possession.

Where do I file a RERA complaint?

With the RERA authority of your state, usually online.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.