RERA for buyers: your rights on delays, carpet area and refunds
The Real Estate (Regulation and Development) Act, 2016 requires most projects above a threshold size to register with the state authority, disclose approvals and timelines, and sell strictly on carpet area. Registration numbers must appear in every advertisement.
Core protections
Developers must deposit 70% of buyer collections in a dedicated project account, used only for that project's construction and land cost, curbing the diversion of funds that historically stalled projects.
- Sale on RERA carpet area only — no super built-up pricing in the agreement
- 70% of collections ring-fenced in a project escrow account
- Interest payable to buyers for delayed possession, at the prescribed rate
- Five-year structural and workmanship defect liability from possession
- No material change to sanctioned plans without two-thirds buyer consent
If your project is delayed
You can either continue and claim interest for every month of delay, or withdraw and demand a full refund with interest. Send a written demand first, then file a complaint with the state authority; adjudication is intended to be faster and cheaper than civil court.
How to check a project properly
Open the state RERA portal, search the registration number, and read the sanctioned plan, quarterly progress reports, declared completion date, encumbrance disclosure and pending complaints. A project with repeated timeline extensions and open complaints is a pricing risk, whatever the locality rate suggests.
Frequently asked questions
Are all projects covered by RERA?
Registration is required for projects above the notified land area or apartment count, with exemptions for very small developments and pure renovation work. Rules vary slightly by state.
Does RERA cover resale flats?
RERA governs promoters and agents. For pure resale between individuals, your protection comes from title verification and the sale agreement, not RERA.