What is RERA in Real Estate | Rules & Regulations
What is RERA in Real Estate

What is RERA in Real Estate

When you’re navigating the real estate market whether you’re buying a home, investing in a plot, or exploring new projects one of the most crucial questions to ask is: Is the project registered under the Real Estate (Regulation and Development) Act, 2016 (RERA)?
In this comprehensive guide by Search Abode, we break down everything you need to know about RERA: what it is, why it was introduced, how it safeguards homebuyers, what RERA approval means for both plots and apartments, how to verify a project’s RERA status, and key insights specifically for Jaipur and Rajasthan real estate.

What is RERA in real estate? Full form and meaning

  • The full form of RERA is the Real Estate Regulatory Authority.
  • It was established under the Real Estate (Regulation and Development) Act, 2016.
  • In simple terms: RERA regulates real‑estate projects and agents so that home‑buyers and plot‑buyers are protected, transactions are transparent, and developers are accountable. HDFC Bank
  • The “in real estate” part emphasises that it covers both residential and commercial projects, including apartments, buildings, and plots (depending on the state rules).

Why RERA is required : The need for reform in real estate

  • Before RERA, many home‑buyers faced issues like: long delays in project possession, hidden charges, misleading marketing, builder insolvency, lack of accountability. HDFC Bank
  • RERA was introduced to bring about transparency, accountability, and standardisation in real‑estate dealings.
  • It aims to protect the interests of consumers/home‑buyers by ensuring that promoters (builders) and agents comply with defined duties.

RERA Guidelines Explained: What Every Property Buyer Must Know

Here are some of the most important guidelines under RERA you as a buyer should know:

  • Projects must be registered with the state RERA before marketing or selling. HDFC Bank
  • Builders must deposit a certain percentage of the funds collected into an escrow account (to ensure funds are used for that project) and cannot divert them.
  • Home‑buyers must be given details of the project: layout, approved plans, status of approvals, timelines. www.bajajfinserv.in
  • The builder must deliver on promises such as possession timeline. If delayed, the buyer has rights under RERA.
  • Agents and builders must register and follow defined duties under their state’s RERA regulations. Wikipedia

Benefits of RERA for buyers

For buyers, RERA brings several clear benefits:

  • You can check whether a project is registered (thus more trustworthy). ICICI Bank
  • Your rights are better defined: in case of delays, deviation from plan, or false promises, you have recourse.
  • The standardisation (for example quoting carpet area rather than ambiguous metrics) helps prevent misleading information. Wikipedia
  • Overall, RERA improves the transparency of the real‑estate market, which helps buyers trust their investment.

Limitations / things to watch

  • RERA is prospectively applicable: projects before a certain date may not be covered fully.
  • While RERA sets out guidelines, the state implementation and ease of enforcement vary across regions.
  • For plots and very small projects, depending on state rules, registration may or may not be mandatory (we’ll cover this under “Is RERA approval mandatory for plots”).

RERA 101: The Act’s History, Structure, and Consumer Grievance Process

The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is still the primary law governing real estate regulation in India. The core act has not been replaced as of 2025, but its implementation, rules, circulars, and enforcement mechanisms have been strengthened by both the Central Government and individual states.

When did the Act come into force?

  • 1 May 2016 – RERA Act passed, and the first set of sections came into force.
  • 1 May 2017 – ALL remaining sections became effective, making RERA fully operational across India.
  • 2017–2025 – States gradually implemented their own RERA Rules, portals, registration processes, and grievance panels.

How the Act is structured (still valid in 2025)

  • The Act continues to contain 10 Chapters & 92 Sections.
  • No major structural amendment has changed this framework.
  • The Central Act remains the same, but state-specific rules and regulatory practices have evolved.

State & UT responsibilities (2025 status)

As of 2025:

  • Every major State and UT has its own RERA authority (except a few small UTs that share a common authority).
  • Most states have introduced updated rules, circulars, penalties, interest rate formulas, digital portals, and faster complaint systems.
  • States like Maharashtra RERA (MahaRERA), Gujarat RERA, Uttar Pradesh RERA, Rajasthan RERA, Karnataka RERA, and Delhi RERA are among the most active and updated.

Key Improvements Across India

Although the Central Act remains the same, states have issued 2021–2025 updates such as:

  • Stricter deadlines for builders to update project status.
  • Increased penalties for misleading ads or false possession dates.
  • Mandatory quarterly project updates (in many states).
  • Online dashboards showing financial progress, maps, revised plans, and litigation status.
  • Better integration with GIS mapping, satellite monitoring (e.g., MahaRERA 2023–2024 upgrades).
  • Faster digital complaint filing and video-hearing formats.
  • Stricter norms for real estate agents and renewal of agent registrations.
  • Introduction of conciliation forums for dispute settlement (many states strengthened these from 2020–2024).

What hasn’t changed (2025 confirmed)

  • The Act’s chapters and sections remain 10 chapters, 92 sections.
  • RERA is still applicable to residential and commercial real estate projects.
  • State RERA remains the primary authority to regulate and adjudicate real estate disputes.

Summary

RERA Act 2016 is still the governing law in 2025.
The Act itself remains unchanged structurally (10 chapters, 92 sections).
Implementation, rules, penalties, complaint processes, and portals have been strengthened significantly at the state level from 2017–2025.
Buyers today have far more transparency, faster grievance redressal, better digital access, and stronger legal protection compared to the early years of RERA.

Key Provisions : What the Act covers

  • Definition of promoter, allottee, real‑estate project, carpet area etc. Wikipedia
  • Registration of real‑estate projects and real‑estate agents.
  • Duties of promoters (builders) and rights of buyers/allottees.
  • Role of the Real Estate Regulatory Authority (RERA) for each state.
  • Establishment of an Appellate Tribunal for appeals.
  • Offences, penalties, adjudication, finance, audit and miscellaneous provisions.

Consumer grievance process under RERA

  • If you are a buyer and your project or builder is registered under your state’s RERA, you can raise a complaint with the relevant authority.
  • The state RERA website usually provides a complaint‑form or online module.
  • In many states the Act provides for timelines for registration of projects (e.g., 30 days for registration decision after application) to enhance speed.
  • Decisions of RERA can be challenged in the Appellate Tribunal of the state. Wikipedia
  • Note: You can also use Consumer Courts (under the Consumer Protection Act, 2019) depending on the nature of your grievance, though RERA is specifically tailored for real‑estate disputes.

Why this matters for you in Jaipur / Rajasthan

Since you are browsing in Jaipur (Rajasthan), some specific local‑angles:

  • The state body for Rajasthan (e.g., Rajasthan Real Estate Regulatory Authority or “RERA Rajasthan”) handles registrations, complaints, etc., for projects in Rajasthan.
  • Before booking a property (plot or apartment) in or around Jaipur, you should check the Rajasthan RERA portal for the project’s registration status.
  • Make sure the builder is registered with RERA, the project has a valid RERA number, and the details are transparent.

Applying RERA knowledge : Key checklist when buying property

Before you invest Checklist for buyers

Here are the practical steps you should take when considering buying:

  1. Check the project’s RERA registration on the state portal.
  2. Verify the builder/promoter’s credentials, prior handed‑over projects, reputation.
  3. Review the layout, approval plans, possession timeline, cost sheet etc.
  4. Check that the builder uses an escrow account and is transparent about fund usage.
  5. Verify the RERA number is quoted in any advertisement or brochure and matches the portal.
  6. For plots: check whether the plot project qualifies under your state’s RERA regs; if yes, ensure registration.
  7. Read the buyer‑builder agreement carefully: check for clauses about delays, compensations, possession etc.
  8. Use the RERA grievance mechanism (or consumer court if needed) if there’s a deviation.
  9. Keep all documentation safe and ensure the project is progressing as per timelines published on the portal.

When something goes wrong ,what you can do

  • If the builder misses the promised possession or deviates from the plan, you can raise a complaint with the state RERA.
  • You may be eligible for interest on delayed possession, refund of amount paid (in some cases) under RERA.
  • Also check if you have an option of consumer‑court or civil course depending on the situation. But RERA is usually faster for real‑estate disputes.

Specific Queries : Covering all RERA Aspects

Is RERA approval mandatory for plots?

  • Under the RERA Act, projects which are residential or commercial developments where real‑estate project means developing land into plots, apartments, buildings etc. are covered.
  • However, whether RERA approval is mandatory for a plot depends on the state’s RERA rules, the size of the project, number of units/plots, etc. For example many states say if the land area > 500 m² or number of units > 8, registration with RERA is needed.
  • So in short: yes, if the plot‑project falls under the definition of “real estate project” under RERA in that state; if it is a very small individual plot sale, it may be exempt. Always check your state portal.

How to check RERA approval

  • Visit the state’s RERA website (for Rajasthan, use the RERA Rajasthan portal).
  • Search by project name, builder/promoter name, or RERA registration number to verify status. 
  • Check whether the project is listed, what the current status is (registered, under construction, completed), what details are published (layout, approvals, etc).
  • If you cannot find the project or builder, that is a red flag.

What is RERA number in real estate

  • Once a project is registered under the state RERA, it will receive a unique registration number (often called RERA number) which must be quoted in all advertisements, promotional material. Wikipedia
  • That RERA number signals the project is listed under the regulatory body, giving you a way to cross‑verify on the portal.

RERA approval means what does it signify?

  • If a project is “RERA approved” (registered under RERA), it means the promoter has applied and obtained registration under the RERA Act in that state, submitted necessary documentation and committed to transparency guidelines.
  • It doesn’t necessarily guarantee zero risk, but it increases your protection as a buyer: you have legal recourse, project details are available, and the builder is accountable. For example, in case of delays, you have rights.
  • If a project is not RERA registered (when it should be), then you may be exposing yourself to higher risk of delay, mis‑representation, etc.

What is the role of RERA in real estate / RERA in real estate builder / agent registration

  • RERA regulates both projects (promoters/builders) and agents/real‑estate brokers.
  • Builders must register their projects and provide the required disclosures. Agents also must be registered and quote their RERA registration number when facilitating deals.
  • This ensures that only compliant players are allowed to operate, reducing the scope for fraudulent intermediaries.

RERA Act in real estate Key features

Here are some of the key features of RERA Act (2016) worth remembering:

  • Mandatory registration of projects and agents.
  • Disclosures: Builders must provide project details, layout, approvals, timeline, and funding.
  • Escrow account: A specified portion of money collected must go into a separate bank account and used only for that project.
  • Carpet area definition: Builders must quote carpet area rather than super built‑up area (which is often inflated).
  • Rights of buyers: They can lodge complaints, claim interest/refund in case of delay or deviation, check status online.
  • Penalties for non‑compliance: For example, if a promoter fails to register, he may be liable to penalties up to 10 % of estimated project cost etc.

RERA in real estate risks India – What you should watch out for

  • Even though RERA improves protections, risks remain: projects not registered, delayed handover, builder insolvency, fewer smaller developers able to comply.
  • Some state portals may not be fully updated or have delays in complaint redressal: you should still do due diligence.
  • Just because a project is RERA registered does not guarantee it is perfect you must check approvals, builder track record, title of land, etc.

RERA in real estate Jaipur case / Rajasthan

  • In the Jaipur / Rajasthan real estate market, you should look for Jaipur RERA search or RERA Rajasthan portal to verify projects.
  • Ensure the builder has registration, check if the plot or apartment comes under the RERA definition for that state.

Conclusion:

The RERA Act (2016) has made real estate safer and more transparent for homebuyers across India. Whether you’re buying in Jaipur or anywhere in Rajasthan, always check if the project is RERA registered, verify the builder’s details, and review all disclosures on the state portal. RERA doesn’t remove every risk, but it greatly reduces chances of delays, fraud, and misinformation. At Search Abode, we aim to help you make clear, confident property decisions if you need guidance with Jaipur RERA search or project verification, just reach out and we’ll assist you step by step.

What is RERA in Real Estate

FAQ’s

Q1: What is the full form of RERA and why was it introduced?

A: RERA stands for Real Estate (Regulation and Development) Act, 2016.
It was introduced to bring transparency, accountability, and fairness to the real estate sector. The Act protects homebuyers from delays, fraud, and misinformation while ensuring that builders follow strict guidelines.

Q2: What does RERA approval mean for homebuyers?

A: RERA approval means a project is legally registered under the state RERA authority. This ensures:
Verified project details
Clear possession timelines
Protection against delays
Builder cannot change layout or price without consent
For buyers, it guarantees safe and reliable investment.

Q3: What are the key rules and regulations under RERA Act?

A: Major RERA rules include:
Mandatory registration of projects above 500 sq. m.
70% of funds must be kept in an escrow account
Builder must provide timely possession
No false advertising or hidden charges
Mandatory disclosure of carpet area, layout plans, approvals
These rules ensure fair practices and transparency in real estate.

Q4: Is RERA registration mandatory for all builders?

A: Yes. All residential and commercial projects that exceed 500 sq. m. or 8 units must be registered with RERA. Without registration, a builder cannot advertise, sell, or promote the project. This reduces fraud and protects buyers.

Q5: How can I check if a project is RERA registered?

A: You can verify project registration on your state’s official RERA website using:
Project name
RERA registration number
Builder’s name
The website will show details like approvals, timeline, layout, and builder compliance, helping buyers confirm the project’s authenticity.

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