RERA Full Form: Real Estate (Regulation and Development) Act 2016

Posted by Housepartner Editorial Team on 09/11/2026

Legal & RERA

Housepartner Editorial TeamUpdated 9 Nov 2026 · 7 min read

Checked against official government sources. General information, not legal or financial advice.

The RERA full form is the Real Estate (Regulation and Development) Act, 2016, a central law that regulates how builders sell flats, plots and buildings in India. The word RERA is also used for the Real Estate Regulatory Authority that each state sets up under the Act. The law makes builders register projects before selling, keep 70% of buyers’ money in a separate account, sell on carpet area and pay interest for delays.

RERA at a glance

Full form: Real Estate (Regulation and Development) Act, 2016 (Act No. 16 of 2016)
Also means: Real Estate Regulatory Authority, the body each state sets up under Section 20
Passed: Rajya Sabha on 10 March 2016, Lok Sabha on 15 March 2016; assent on 25 March 2016
In force: 61 sections from 1 May 2016; the remaining sections from 1 May 2017
Structure: 92 sections in 10 chapters
Who must register: projects above 500 sq m of land or more than 8 apartments, and property dealers who sell units
Appeals: to the Real Estate Appellate Tribunal (Section 43)

In this guide

What does RERA stand for?
Why the RERA Act was made
Key sections of the RERA Act, 2016
Who must register under RERA
How buyers can use RERA
RERA and consumer courts
State RERA authorities
Frequently asked questions

What does RERA stand for?

RERA stands for the Real Estate (Regulation and Development) Act, 2016. People also use it for the Real Estate Regulatory Authority, the regulator in each state or union territory. For example, UP RERA, MahaRERA and K-RERA are the authorities for Uttar Pradesh, Maharashtra and Karnataka. The Act is the same across India, but each state makes its own rules on fees, forms and interest rates.

Why the RERA Act was made

Before 2016, projects were sold on super built-up area, money moved between projects and possession was often delayed for years. The Act set out to:

bring transparency, with project details published on the state RERA website;
protect buyers’ money through a separate project account;
fix the duties of builders and buyers in writing;
set up a fast, specialised forum for complaints and appeals.

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Key sections of the RERA Act, 2016

Section	What it says (in brief)
3	No advertising, booking or sale of a project without registration with the state RERA. Exempt: land up to 500 sq m or up to 8 apartments (all phases), projects with a completion certificate before the Act, and repair or redevelopment with no new sale
4(2)(l)(D)	70% of money collected from buyers must go into a separate account in a scheduled bank and be used only for land and construction of that project. Withdrawals must match progress, certified by an engineer, an architect and a chartered accountant
9	Property dealers who sell units in registered projects must register with the authority
11	Builder’s duties: update the project page on the RERA website every quarter, help form the buyers’ association, execute the conveyance deed, and cancel an allotment only as per the agreement
13	No more than 10% of the price can be taken as advance or application fee before a written agreement for sale is signed and registered
14(3)	Structural defects and poor workmanship reported within 5 years of possession must be fixed free within 30 days
18	If possession is late, the buyer can exit and get a refund with interest and compensation, or stay and get interest for every month of delay
20	Each state must set up a Real Estate Regulatory Authority
31	Any affected person, including a buyers’ association, can file a complaint with the authority or the adjudicating officer
43	Real Estate Appellate Tribunal to hear appeals against authority orders
59	Selling without registration: penalty up to 10% of the estimated project cost; continued breach can mean up to 3 years’ jail, a further 10% fine, or both
79	Civil courts cannot hear matters the authority or tribunal is empowered to decide
88	The Act is in addition to, not in place of, other laws

The interest rate under Section 18 is set by each state’s rules. Many states link it to the State Bank of India’s lending rate plus 2%. Check your state’s RERA rules for the exact rate.

Who must register under RERA

Builders and developers of residential or commercial projects above the Section 3 limits. Each phase of a phased project is registered as a separate project.
Ongoing projects that did not have a completion certificate when the Act came into force.
Plotted developments above the limits, not only flats.
Property dealers who sell units in registered projects (Section 9).

A state can lower the 500 sq m and 8-unit limits through its own rules.

How buyers can use RERA

Before booking: search the project on the state RERA website. Check the registration number, the approved plan, the promised completion date and the quarterly progress updates.
At booking: do not pay more than 10% before a registered agreement for sale. Read the agreement against your state’s model format.
During construction: keep every receipt, and watch the project page for delays or plan changes.
At possession: check the carpet area against the agreement and get the occupancy certificate and conveyance deed.
After possession: report structural defects within 5 years. The builder must fix them within 30 days.
If something goes wrong: file a complaint on the state RERA portal under Section 31.

RERA and consumer courts

A buyer can still go to a consumer commission. In Imperia Structures Ltd v Anil Patni (November 2020), the Supreme Court held that a consumer commission is not a civil court, so Section 79 does not bar it, and Section 88 keeps other remedies open. Pick one forum for the same claim.

State RERA authorities

Every state and union territory has its own authority and website. West Bengal first had a separate state law (WBHIRA), which the Supreme Court struck down on 4 May 2021; the state then notified rules under the central Act in 2021. Our state guides:

State	Authority	Our guide
Uttar Pradesh	UP RERA	UP RERA guide
Maharashtra	MahaRERA	MahaRERA guide
Karnataka	K-RERA	Karnataka RERA
Rajasthan	RERA Rajasthan	RERA Rajasthan
Haryana	HRERA (Gurugram and Panchkula)	Haryana RERA
Gujarat	GujRERA	Gujarat RERA
Madhya Pradesh	MP RERA	MP RERA
Tamil Nadu	TNRERA	TNRERA
Telangana	Telangana RERA	Telangana RERA

Frequently asked questions

What is the full form of RERA?

RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is also used for the Real Estate Regulatory Authority set up in each state under the Act.

When did RERA come into force?

The Act got Presidential assent on 25 March 2016. Some sections came into force on 1 May 2016, and the rest, including project registration, on 1 May 2017.

Which projects are exempt from RERA registration?

Under Section 3(2), projects on land up to 500 sq m or with up to 8 apartments, projects completed before the Act, and repair or redevelopment with no new sale are exempt. States can lower these limits.

How much advance can a builder take under RERA?

Section 13 caps the advance or application fee at 10% of the price until a written agreement for sale is signed and registered.

What does Section 18 of RERA give a buyer?

If possession is late, the buyer can exit with a refund plus interest and compensation, or stay in the project and get interest for every month of delay until possession.

Does RERA apply to resale flats?

RERA governs the builder’s sale of units in a project. A resale between two owners is a private sale, though the project’s RERA record is still useful to check.

Can I go to consumer court instead of RERA?

Yes. The Supreme Court has held that RERA does not bar consumer complaints. Choose one forum for the same claim.

This guide gives a plain summary of the Act and is general information, not legal advice. Rules, fees and interest rates vary by state; read the bare Act and your state RERA rules, or consult a lawyer, before acting. Sources: Real Estate (Regulation and Development) Act, 2016 (India Code text, Sections 3, 4, 11, 13, 14, 18, 31, 59 as published on courtbook.in and lawx.in); Supreme Court judgments in Imperia Structures v Anil Patni (2020) and on WBHIRA (4 May 2021); notification of 19 April 2017 bringing the remaining sections into force.

About the author

Housepartner Editorial Team Housepartner.in

The Housepartner Editorial Team writes and reviews Housepartner's buyer guides on RERA, land records, stamp duty and property documents, using official government sources. The team has worked in Indian real estate since 2013.

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