Talk to anyone who had purchased a flat in India before 2016, and the story will be the same. The flats were supposed to be ready in two years. Instead, they were ready in five. The builder would no longer answer phone calls after the third year. The payment had already been made. There was no one to complain to, no law that held the builder accountable, and no time frame that had to be followed.
For many years, homebuyers in India have had very little protection against the problems of delay in projects, false information about property, and unfair business practices by developers. In an effort to address these issues, the Real Estate (Regulation and Development) Act (RERA) has been brought in.
How This Law Came Into Existence
Real estate in India was completely unregulated for buyers before 2016. Developers made promises in brochures that had no legal weight. Agents sold projects that were not even approved yet. Buyers parted with lakhs and crores and then waited, sometimes indefinitely.
The Real Estate (Regulation and Development) Act was passed in March 2016 and came into force on May 1, 2016. It was the first time India had a dedicated central law for the real estate sector focused specifically on buyer protection.
What is the RERA Act in structure? It requires every state to set up its own regulatory authority. Maharashtra launched MahaRERA, which today has over 50,000 registered projects on record, accounting for nearly 35% of all RERA registrations across India.
No developer can advertise, market, book, or sell any project with more than 8 units or on land above 500 sq metres without first registering with the state RERA authority and getting a project number. Selling without this is illegal, not just a procedural lapse.
The Money Protection Rule That Changed Everything
The biggest problem before RERA became law was fund diversion. A developer would collect buyer payments from Project A and quietly use that money to buy land for Project B or cover losses in Project C. Buyers of Project A would then wait for years while their money was elsewhere.
- 70% of every rupee a buyer pays must go into a separate escrow account maintained exclusively for that project. This money cannot be moved, used, or accessed for anything else without formal certification.
- Every withdrawal from that escrow requires simultaneous written sign-off from three different professionals: an architect, a Chartered accountant, and a Project engineer. One person cannot authorise it alone.
- Before signing any written agreement, a developer cannot collect more than 10% of the property value as an advance or application fee. Paying more than this before documentation is done puts the buyer in a weak legal position.
Rules Around Pricing, Timelines, And Design Changes
What is RERA in real estate when it comes to day-to-day transaction rules it standardised three things that were completely inconsistent before. Pricing basis, delivery accountability, and the developer’s right to make changes after you have paid.
- All properties must be priced and sold on carpet areas only. Super built-up area pricing, which made flats appear cheaper per sq ft by inflating the number, is no longer a legal basis for any sale agreement.
- If the developer misses the possession date registered with RERA, they pay the buyer interest at 2% above SBI’s lending rate for every month of delay. This runs until actual possession is handed over, making delays genuinely expensive for the developer.
- Any significant change to the approved building plan or project layout after bookings have started requires written consent from two-thirds of all buyers in that project. The developer cannot redesign what you paid for without your agreement.
What Happens After Possession — The 5 Year Protection
Most buyers assume that once they get the keys, the developer’s responsibility is over. Under what is the RERA, that assumption is wrong. The law extends accountability well past possession day.
- The developer carries a 5-year structural defect liability from the date of possession. If you notice a crack in the structure, water seepage, or any other defect within 5 years, the developer must fix it within 30 days at zero cost to you.
- Developers must upload quarterly construction progress reports on the RERA portal throughout the project. Any buyer can open the portal and check actual construction progress against the registered timeline at any time without asking the developer.
- Under MahaRERA Order 57/2024, every sale agreement must specifically list all promised amenities such as gym, pool, garden, clubhouse along with their individual handover dates. A verbal promise about amenities has no legal standing.
How To Check Any Project On Maharera Yourself
Knowing what the RERA framework is useful. Actually using the portal before paying anything is where it becomes practical. The MahaRERA portal at maharerait.mahaonline.gov.in is open to anyone and requires no login to search.
- Type in the project’s RERA registration number and you will see the registered carpet area, the possession date the developer committed to at registration, the amenities list, quarterly progress updates, and any complaints other buyers have already filed.
- The date on the RERA portal is the legal possession date. If a salesperson tells you a different date, ask them to show you the RERA portal entry. The portal date is what counts in any legal dispute.
- Before booking a 1 BHK flat in Panvel or any other configuration, always verify the RERA number on the portal yourself. Anant Realty publishes MahaRERA registration numbers for all current projects Anant Serene Park carries P52000052516 and P52000079857, Anant Serene Villas carries P52000079647, and Riverside Taloja carries P52000045602. All four are verifiable in under five minutes on the portal.
By 2025, over 29,000 complaints had been filed on the MahaRERA portal across Maharashtra and 1,905 projects had registrations suspended with bank accounts frozen for non-compliance. What is RERA ultimately a law with real teeth. Using it before you buy is the simplest thing you can do to protect one of the largest financial decisions of your life.