The Indian real estate sector has evolved with stronger regulations that help buyers evaluate properties with greater clarity. Before investing in residential apartments, buyers need to understand the rules that govern project registration, disclosures, payments, and promoter responsibilities.
The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to create a more transparent and accountable framework for real estate transactions across India. While the central Act provides the foundation, implementation is managed through state-level regulatory authorities and portals.
For buyers exploring residential apartments, understanding how RERA works can help them review verified project information, compare important details, and make informed decisions based on applicable state regulations.
Let’s understand how RERA applies across India and the key guidelines buyers should know before purchasing a property.
What is RERA and How Does it Apply Across India?
RERA establishes a regulatory framework for real estate projects and creates Real Estate Regulatory Authorities at the state or Union Territory level. While the central Act provides the foundation, individual states frame rules and operate their respective regulatory portals.
This means buyers looking at residential apartments should understand both the central provisions and the rules applicable in the property’s state.
The framework generally covers project registration, promoter disclosures, carpet area, advance payments, project funds, possession obligations, and grievance redressal. State authorities provide platforms where buyers can access registered project information and other relevant services.
Important RERA Guidelines That Protect Residential Apartment Buyers
The following provisions are particularly relevant when evaluating residential apartments:
- Applicable Projects Must be Registered
Promoters of projects covered by RERA generally need to register them with the relevant state authority before advertising, marketing, booking, or selling them. The Act provides specific exemptions, including certain small projects based on land area and apartment count. Buyers should therefore verify the project’s RERA registration number and details before making a booking payment.
- Important Project Information Must be Disclosed
RERA requires promoters to provide project-related information through the regulatory framework. This can include sanctioned plans, project details, approvals, timelines, promoter information, and other prescribed disclosures. For residential apartments, buyers can use these details to compare information presented by the promoter with the project’s registered records.
- Carpet Area Provides a Standard for Comparison
RERA defines carpet area as the net usable floor area of an apartment, subject to the exclusions specified under the Act. This gives buyers a more consistent basis for comparing residential apartments with different layouts and quoted sizes. Buyers should check the carpet area stated in the relevant documents instead of relying solely on super built-up or other area descriptions.
- Advance Payment Has a 10% Limit Before the Agreement
A promoter cannot accept more than 10% of the cost of an apartment, plot, or building as an advance or application fee without first entering into and registering the agreement for sale. Buyers should understand this requirement before making substantial payments towards residential apartments.
- 70% of Certain Collections Goes Into a Separate Account
RERA requires 70% of amounts realised from allottees for a project to be deposited into a separate scheduled-bank account for covering land and construction costs. Withdrawals are linked to the project’s percentage of completion and require prescribed professional certifications. This provision is intended to strengthen financial discipline around project funds.
- Changes to Approved Plans are Regulated
Promoters cannot freely make changes to sanctioned plans, structural designs, or certain specifications after approval. RERA prescribes conditions and, for specified changes, requires consent from allottees. This gives buyers greater clarity about the development they have agreed to purchase.
- Promoters Have Defined Responsibilities
RERA places responsibilities on promoters concerning project information, approvals, construction, possession, and other obligations. Buyers should therefore review the registered project details and agreement terms carefully before purchasing residential apartments.
- Buyers Have Access to Grievance Mechanisms
RERA provides a regulatory and adjudicatory framework for addressing eligible disputes. A buyer who believes that a promoter has violated applicable provisions can use the complaint mechanisms available through the relevant state authority.
How RERA Rules Work Across Major States
The central RERA framework applies across India, but buyers interact with the regulatory authority and rules applicable to their property’s state.
| State | Regulatory Authority | What Buyers can Check |
| Maharashtra | MahaRERA | Registered projects, promoter details, project progress and complaints |
| Karnataka | Karnataka RERA | Registered projects, approvals and project-related information |
| Tamil Nadu | TNRERA | Project registration, promoter information and registered project details |
| Telangana | TG RERA | Registered projects, promoters, completion dates and project details |
For example, MahaRERA provides access to registered project details, project searches, and complaint-related services through its portal. Buyers in Tamil Nadu evaluating projects through a real estate company in Chennai should verify TNRERA registration, approved details, and disclosures before making property decisions. This helps them review important project details and make a more informed choice based on verified information.
Telangana RERA also provides registered project search facilities where buyers can review project-related information based on available details. The process may vary between states, but the objective remains the same: helping buyers access verified project information before investing.
RERA is Important, but Due Diligence Still Matters
RERA gives buyers a structured framework for evaluating residential apartments, but it should form one part of the overall property assessment. Buyers should still examine location, construction quality, connectivity, maintenance provisions, financing terms, and the project’s suitability for their requirements.
Builders like Casagrand demonstrate how structured project planning and transparent information can contribute to a more informed buying experience. Buyers should compare registered information with contractual documents and conduct appropriate legal checks before proceeding.
Understanding RERA rules can evaluate residential apartments more methodical. By checking registration, disclosures, carpet area, payment terms, project progress, and state-specific information, buyers can approach their property decision with greater clarity and confidence.