The Indian real estate market, especially in metros like Mumbai and Thane, has long been plagued by delays, fraud, and lack of transparency. That’s exactly why the Real Estate (Regulation and Development) Act (RERA) was introduced in 2016 — to bring accountability and protect buyers’ interests.
Whether you’re a first-time buyer or a seasoned investor, understanding RERA rules is essential for safe and informed investment decisions.
What Is RERA?
RERA is a central law aimed at regulating the real estate sector. It ensures:
- Transparent project disclosures
- Timely delivery of properties
- Accountability from developers and agents
Let’s explore the 14 key rules of RERA every investor must know before putting their money into real estate.
1. Mandatory Project Registration
All residential and commercial real estate projects above 500 sq. m. or with more than 8 apartments must be registered with RERA before any advertisement or sale.
Without registration, developers cannot promote, market, book, or sell.
2. Advance Payment Capped at 10%
A builder cannot demand more than 10% of the property value as advance or application fee before signing a registered sale agreement.
This protects buyers from excessive upfront payments.
3. Project Details Must Be Disclosed
Developers must upload:
- Project layout
- Completion timeline
- Legal title deeds
- Approvals and certifications
This ensures complete transparency before purchase.
4. Fund Utilization Restriction
At least 70% of the money collected from buyers must be deposited in a separate escrow account.
This amount can only be used for that specific project, ensuring timely completion and reducing diversion of funds.
5. Timeline Commitment
Promoters must clearly mention the project completion date in the RERA registration.
Delays can lead to compensation or refunds to buyers.
6. Penalty for Delays
If possession is delayed beyond the committed timeline, developers must pay interest to the buyer every month until possession is handed over.
7. Carpet Area Defined
The price must be based on the carpet area, not the super built-up area.
This gives a more realistic sense of the actual usable space.
8. Five-Year Defect Liability
Developers are responsible for structural defects or poor workmanship reported within five years of possession.
They must rectify these issues at no extra cost.
9. Advertising and Marketing Restrictions
All promotional material must carry the RERA registration number.
Any misleading advertisement without registration is punishable.
10. Agent Registration is Mandatory
Real estate agents dealing in RERA-registered projects must also register themselves.
This ensures a regulated and traceable transaction environment.
11. No Changes Without Consent
Developers cannot make structural changes to the project after booking without written consent from at least two-thirds of the buyers.
12. Grievance Redressal Mechanism
Buyers can file complaints with the RERA authority or approach the RERA Appellate Tribunal for faster resolutions.
13. Refund Option for Buyers
If a developer fails to deliver or violates any terms, the buyer has the right to:
- Withdraw from the project
- Receive a full refund with interest
14. Legal Penalties for Violations
Developers who violate RERA provisions can face:
- Fines up to 10% of the project cost
- Imprisonment for up to 3 years
How OneStopRealty Ensures RERA Compliance
At OneStopRealty, we make sure:
- Every listed project is RERA-registered
- Buyers understand key compliance factors before investing
- You avoid non-compliant projects with hidden risks
With our expert team, legal checks, and verified listings, we help you invest safely in Mumbai and Thane real estate.
Conclusion: RERA Is Your Safety Net
To sum it up, RERA has revolutionized real estate buying in India.
Understanding these 14 essential rules can save you from delays, legal disputes, and fraudulent developers.
Choose wisely. Choose RERA-compliant projects with OneStopRealty for a secure and hassle-free investment.
Looking for verified, rental homes, resale inventory and trusted builders in Mumbai or Thane? Visit OneStopRealty for expert help, legal checks, and tenant-friendly support.
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