What Is RERA and Why It Matters: A Homebuyer's Guide to Your Rights in 2026

RERA is the Real Estate (Regulation and Development) Act, 2016 — a law that regulates builders, makes project registration compulsory, enforces transparency on pricing and timelines, and gives homebuyers a regulator to turn to when something goes wrong.

The Act was passed in 2016 and came into full force on 1 May 2017, after which states set up their own authorities, such as MahaRERA in Maharashtra.

Any real estate project where the land area exceeds 500 square metres or there are more than 8 apartments must be registered before it can be advertised, marketed or sold (Section 3).

Developers must deposit 70% of the money collected from buyers into a separate project bank account, usable only for that project’s land and construction, and withdrawn in line with construction progress. It prevents builders from diverting your money to other ventures.

Carpet area is the net usable floor area inside your flat, including internal partition walls but excluding external walls, balconies, shafts and common areas. RERA requires homes to be sold on carpet area, not the inflated super built-up area.

You can either withdraw from the project and claim a full refund with interest, or continue and receive monthly interest as compensation for the delay. The interest rate is the same one that would apply if you delayed a payment.

Non-registration can attract a penalty of up to 10% of the estimated project cost. If the violation continues, the promoter can face imprisonment of up to three years, a further fine of up to 10%, or both (Section 59).

MahaRERA is the Maharashtra Real Estate Regulatory Authority — the state body that registers projects and agents, hears buyer complaints, and enforces RERA across Maharashtra, including Mumbai and Andheri.

Visit your state RERA portal (maharera.maharashtra.gov.in in Maharashtra) and search by project name, promoter or registration number. You can also scan the QR code that must appear on every advertisement to open the project’s official RERA page.

Ongoing projects that had not received a completion certificate when RERA came into force were required to register. Projects that already had a completion certificate and were occupied generally fall outside fresh registration.

Timelines vary by case and state, but RERA is designed for faster resolution than the old consumer courts, and appeals to the Appellate Tribunal must be filed within 60 days of an order. In Maharashtra, ordered compensation must now be paid within 60 days.

Yes. Projects on a plot of 500 square metres or less, or with 8 or fewer apartments, are not required to register, so buyers in very small developments do not get the same statutory protections.