The Real Estate (Regulation and Development) Act, 2016 (RERA)
A section-wise guide to RERA covering registration of real estate projects and agents, promoter obligations, allottee rights, complaints, appeals, compensation, enforcement and penalties.
The Real Estate (Regulation and Development) Act, 2016 was enacted to regulate and promote the real estate sector, improve transparency and efficiency in transactions, protect consumers, establish Real Estate Regulatory Authorities, and provide adjudicatory and appellate mechanisms for dispute resolution.
Present applicability: The original 2016 text of section 1 referred to exclusion of the former State of Jammu and Kashmir. Following the reorganisation of Jammu and Kashmir and subsequent extension and implementation measures, RERA rules have also been notified for the Union Territories. For a current compliance question, check the applicable State or Union Territory RERA rules and regulatory portal.
Key RERA provisions at a glance
Project registrationSection 3 generally requires registration before advertising, marketing, booking, selling or offering for sale a project that falls within the statutory threshold, subject to exemptions and any lower threshold prescribed by the appropriate Government.
70% project accountSection 4 requires seventy per cent of amounts realised from allottees for the project to be deposited in a separate scheduled-bank account for land and construction costs, with withdrawals linked to project completion and professional certification.
Advance capped before agreementUnder section 13, a promoter cannot accept more than ten per cent of the cost as advance or application fee without first entering into and registering a written agreement for sale.
Transfer of projectSection 15 requires prior written consent of two-thirds of allottees (excluding the promoter) and prior written approval of the Authority before the promoter transfers or assigns majority rights and liabilities in a project.
Defect liabilitySection 14 provides a five-year period from handing over possession for specified structural or workmanship defects and requires rectification within thirty days after notice, failing which compensation may follow.
Complaint and appealAn aggrieved person may file a complaint under section 31. Appeals from specified orders lie to the Real Estate Appellate Tribunal under the Act, followed by an appeal to the High Court on the statutory grounds.
RERA chapter index
- CHAPTER I - PRELIMINARY
- CHAPTER II - REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS
- CHAPTER III - FUNCTIONS AND DUTIES OF PROMOTER
- CHAPTER IV - RIGHTS AND DUTIES OF ALLOTTEES
- CHAPTER V - THE REAL ESTATE REGULATORY AUTHORITY
- CHAPTER VI - CENTRAL ADVISORY COUNCIL
- CHAPTER VII - THE REAL ESTATE APPELLATE TRIBUNAL
- CHAPTER VIII - OFFENCES, PENALTIES AND ADJUDICATION
- CHAPTER IX - FINANCE, ACCOUNTS, AUDITS AND REPORTS
- CHAPTER X - MISCELLANEOUS
CHAPTER I - PRELIMINARY
- Section 1 : Short title, extent and commencement
- Section 2 : Definitions
CHAPTER II - REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS
- Section 3 : Prior registration of real estate project with Real Estate Regulatory Authority
- Section 4 : Application for registration of real estate projects
- Section 5 : Grant of registration
- Section 6 : Extension of registration
- Section 7 : Revocation of registration
- Section 8 : Obligation of Authority consequent upon lapse of or on revocation of registration
- Section 9 : Registration of real estate agents
- Section 10 : Functions of real estate agents
CHAPTER III - FUNCTIONS AND DUTIES OF PROMOTER
- Section 11 : Functions and duties of promoter
- Section 12 : Obligations of promoter regarding veracity of the advertisement or prospectus
- Section 13 : No deposit or advance to be taken by promoter without first entering into agreement for sale
- Section 14 : Adherence to sanctioned plans and project specifications by the promoter
- Section 15 : Obligations of promoter in case of transfer of a real estate project to a third party
- Section 16 : Obligations of promoter regarding insurance of real estate project
- Section 17 : Transfer of title
- Section 18 : Return of amount and compensation
CHAPTER IV - RIGHTS AND DUTIES OF ALLOTTEES
CHAPTER V - THE REAL ESTATE REGULATORY AUTHORITY
- Section 20 : Establishment and incorporation of Real Estate Regulatory Authority
- Section 21 : Composition of Authority
- Section 22: Qualifications of Chairperson and Members of Authority
- Section 23 : Terms of office of Chairperson and Members
- Section 24: Salary and Allowances payable to Chairperson and Members
- Section 25 : Administrative powers of Chairperson
- Section 26 : Removal of Chairperson and Members from office in certain circumstances
- Section 27 : Restrictions on Chairperson or Members on employment after cessation of office
- Section 28 : Officers and other employees of Authority
- Section 29 : Meetings of Authority
- Section 30 : Vacancies, etc., not to invalidate proceeding of Authority
- Section 31 : Filing of complaints with the Authority or the adjudicating officer
- Section 32 : Functions of Authority for promotion of real estate sector
- Section 33 : Advocacy and awareness measures
- Section 34 : Functions of Authority
- Section 35 : Powers of Authority to call for information conduct investigations
- Section 36 : Power to issue interim orders
- Section 37 : Powers of Authority to issue directions
- Section 38 : Powers of Authority
- Section 39 : Rectification of orders
- Section 40 : Recovery of interest or penalty or compensation and enforcement of order, etc
CHAPTER VI - CENTRAL ADVISORY COUNCIL
CHAPTER VII - THE REAL ESTATE APPELLATE TRIBUNAL
- Section 43 : Establishment of Real Estate Appellate Tribunal
- Section 44 : Application for settlement of disputes and appeals to Appellate Tribunal
- Section 45 : Composition of Appellate Tribunal
- Section 46 : Qualifications for appointment of Chairperson and Members
- Section 47 : Term of office of Chairperson and Members
- Section 48 : Salary and allowances payable to Chairperson and Members
- Section 49 : Removal of Chairperson and Member from office in certain circumstances
- Section 50 : Restrictions on Chairperson or Judicial Member or Technical or Administrative Member on employment after cessation of office
- Section 51 : Officers and other employees of Appellate Tribunal
- Section 52 : Vacancies
- Section 53 : Power of Tribunal
- Section 54 : Administrative powers of Chairperson of Appellate Tribunal
- Section 55 : Vacancies not to invalidate proceeding of Appellate Tribunal
- Section 56 : Right to legal representation
- Section 57 : Orders passed by Appellate Tribunal to be executable as a decree
- Section 58 : Appeal to High Court
CHAPTER VIII - OFFENCES, PENALTIES AND ADJUDICATION
- Section 59 : Punishment for non registration under section 3
- Section 60 : Penalty for contravention of section 4
- Section 61 : Penalty for contravention of other provisions of this Act
- Section 62 : Penalty for non registration and contravention under sections 9 and 10
- Section 63 : Penalty for failure to comply with orders of Authority by promoter
- Section 64 : Penalty for failure to comply with orders of Appellate Tribunal by promoter
- Section 65 : Penalty for failure to comply with orders of Authority by real estate agent
- Section 66 : Penalty for failure to comply with orders of Appellate Tribunal by real estate agent
- Section 67 : Penalty for failure to comply with orders of Authority by allottee
- Section 68 : Penalty for failure to comply with orders of Appellate Tribunal by allottee
- Section 69 : Offences by companies
- Section 70 : Compounding of offences
- Section 71 : Power to adjudicate
- Section 72 : Factors to be taken into account by the adjudicating officer
CHAPTER IX - FINANCE, ACCOUNTS, AUDITS AND REPORTS
- Section 73 : Grants and loans by Central Government
- Section 74 : Grants and loans by State Government
- Section 75 : Constitution of Fund
- Section 76 : Crediting sums realised by way of penalties to Consolidated Fund of India or State account
- Section 77 : Budget accounts and audit
- Section 78 : Annual Report
CHAPTER X - MISCELLANEOUS
- Section 79 : Bar of Jurisdiction
- Section 80 : Cognizance of Offences
- Section 81 : Delegation
- Section 82 : Power of appropriate Government to supersede Authority
- Section 83 : Powers of appropriate Government to issue directions to Authority and obtain reports and returns
- Section 84 : Power of appropriate Government to make rules
- Section 85 : Power to make regulations
- Section 86 : Laying of rules
- Section 87 : Members etc to be Public Servants
- Section 88 : Application of other laws not barred
- Section 89 : Act to have overriding effect
- Section 90 : Protection of action taken in good faith
- Section 91 : Power to remove difficulties
- Section 92 : Repeal
Using this section-wise RERA guide
The links above open the corresponding section pages on this website. For authoritative statutory text, amendments, rules, notifications, prescribed forms, project searches, complaint procedures and local filing requirements, consult the applicable official Central, State or Union Territory source.
This page is an informational legal reference and is not a substitute for professional advice on the facts of a particular project, allotment, complaint or appeal.