New Rules & Regulations for RERA for Buyer & Seller – 2020

The real estate sector is one of the most prominent sectors in India. But over the few years, the property buyers have been manipulated by the property owners.

The RERA [Real Estate {Regulations and Development} Act] was introduced in 2016 under Section 84 with the aim of establishing the Real Estate Regulations Authority in all the states. It also plays an important role in acting as an adjudicating body to solve disputes between the two parties.

The regulatory authorities are appointed to handle all the registrations of the real estate projects and appropriate regulation of the contracts between the buyer and the seller.

The Act covers both the residential as well as commercial segments. The general rules for the RERA Act were October 31, 2016, through HUPA [Housing & Urban Poverty Alleviation].

All state governments are required to establish a real estate regulator and a website for the benefit of all stakeholders.

All the RERA Act rules are in function and will affect the union territories as well.


RERA is an act for regulating and promoting the real estate sector.

•       Regulate the contracts between the buyer and the seller
•       To resolve disputes that may arise while purchasing property, apartment or building.
•       Enhance transparency and accountability related to housing transactions and real estate.

Essential aspects of the Act

•       70% of the buyers and the investor’s money is kept in an account as a security deposit. This amount will be provided to the builder of the property for construction purposes only.

•       The property builders, as well as the developers, are not permitted to demand any extra amount of more than 10% of the total cost of the property as an advance payment.

•       The builders are required to be transparent in their approach while taking up a project. They must submit all the original documents o the projects.

•       The developers are given clear instructions by the Real Estate Authority to sell the property based on the carpet area and not the built up area to ensure fairness.

•       In order to maintain quality service, the builders are supposed to resolve the issues faced by the buyers within five years of purchase.

Carpet Area under RERA Act

•       The total area of the floor that can be used within the walls of the apartment is called the carpet area, according to the Act.

Objectives of the RERA Act

The purpose of the introduction of the RERA Act is
•       To protect the interests of the property buyers
•        Reduce exploitation of all kinds of property buyers by the builders.
•       Boost real estate investment
•       Establish a dispute resolution system
•       Reform the real estate sector in the country

Certain regulatory authorities are appointed so that they register all the real estate projects and regulate the contracts between the buyer and the seller.

Benefits of RERA Act

•       Standard formula calculation

A standard formula is set only by which the carpet area will be calculated. This means the property builders will not be given a chance to inflate the prices.

•       Reduction in the insolvency issues

The rule of depositing 70% of the property building amount in the account reduces the risk of falling into a debt trap.

•       Rule for Advance payment

The builder cannot demand more than 10% of the cost of the project from the buyers, as per rules.

•       Solving Quality issues

Within 5 years of ownership, the buyer can demand to fix the damages in the property.

•       Buyer’s Right to information

The buyer has the right to be involved in all the aspects of the property building project. 

•       Rights of the buyers regarding false commitments

If the builders do not fulfil the responsibilities, the buyers have the right to withdraw from the project and demand all the amount he invested.

•       The right to Complain

The buyer, promoter or the agent can complain if they are facing issues regarding the project.

New Rules

After the introduction of the RERA Act, Maharashtra was one of the few states to enact rules under the Act which are

 The Government of Maharashtra (GoM) issued a notification on June 6 mentioning certain amendments in the Maharashtra Real Estate Regulatory Authority (MAHA RERA) Act Amendment Rules.

Some Amendments made in the MAHA RERA Act

•       Rules regarding fees

The minimum fees of real estate project registration fees reduced from Rs 50000 to Rs 10000.

•       Rules with regards to the plotted development

Fees will be charged for the Plotted Development Project Registration. The fees is calculated based on the area of land proposed to be developed.

•       No double counting of costs.

•       The Right to file an enquiry for Investigation

Under Section 35(1) of the Real Estate Act, RERA can appoint one or more individuals to conduct an inquiry to check into the affairs.

RERA plans to provide investigating powers to the buyers. This means that if they find out that the builders are being unethical, they can file an enquiry for further investigation.

RERA Online Website

The Real Estate Regulatory Act in New Delhi introduced a common platform as an online website for the purpose of exchanging views and for the ease of the property buyers and property builders. The aim of the introduction of the portal is also promoted transparency as well as accountability.

RERA Registration

It is mandatory that the builders register under RERA because the buyers will consider only the registered builders as it gives them a sense of security.   

Registration requirements

If the area of the property is more than 500 square meters, it is mandatory for the builders to register under the RERA Act before putting the property for advertisement.

RERA Act Rules, 2016 in PDF Format


For the RERA Act to be a success, the state governments need to make certain the rules and regulations established, are followed in an appropriate manner. The property buyers are required and expected to be fully aware of the latest rules formulated for their benefit and invest in a property only after a good amount of research.