What Is RERA? How It Protects Buyers and What to Check Before You Sign

RERA (Real Estate Regulatory Authority) is India’s real estate regulation law, enacted in 2016, that requires developers to register projects, maintain escrow accounts for your funds, and deliver what they promise — with legal penalties if they do not. In Maharashtra, MahaRERA has been one of the most active and effective state RERA implementations. Here is everything you need to know before you sign any real estate agreement.

Reading time: 12 minutes | Last updated: July 2026 | Author: Girish Chhalwani, Founder & CEO, THE EDGE Developments

Before RERA, Indian real estate buyers had no standardised protection. Developers could change layouts, delay indefinitely, divert your funds to other projects, and sell the same unit to multiple buyers. RERA (Real Estate Regulation and Development Act 2016) ended all of this — or at least gave buyers enforceable legal recourse when it happens. — Source: Ministry of Housing and Urban Affairs, RERA Impact Report 2024

What does RERA actually do to protect buyers?

RERA gives buyers seven enforceable protections — mandatory registration, fund escrow, a standard agreement, delay liability, defect liability, a complaint mechanism, and disclosure obligations. Below is what each means in practice.

1. Mandatory Project Registration

Any real estate project with more than 500 sq.m of land or 8 units must be registered with the state RERA authority before any sale or marketing. In Maharashtra, this is MahaRERA (maharerait.maharashtra.gov.in). Selling without RERA registration is a criminal offence.

What this means for you: Before paying any amount — even a booking token — search the project on MahaRERA. If it does not appear, do not pay.

2. Escrow Account for 70% of Funds

Developers must deposit 70% of all money received from buyers into a designated escrow account. Funds from this account can only be withdrawn in proportion to construction completion — verified by a chartered engineer and architect. This prevents fund diversion to other projects (the most common cause of project failure before RERA).

3. Standardised Sale Agreement

RERA mandates a standard format for the Agreement for Sale. Developers cannot use one-sided agreements with excessive clauses. Key protected terms:

• Penalty for buyer delay cannot exceed penalty for developer delay
• Possession date must be stated clearly in the agreement
• Carpet area (not super built-up) must be stated

4. Possession Date Liability

If a developer misses the promised possession date, buyers are entitled to either:

• Full refund with interest (SBI MCLR + 2%), or
• Continue the project with interest compensation at SBI MCLR + 2% per year for the delay period

The developer cannot simply say “project delayed — wait.” They are liable to compensate.

5. Structural Defect Liability for 5 Years

After possession, if any structural defect is found within 5 years, the developer must repair it at no cost to the buyer. This applies to built residential properties and constructed villas.

6. Complaint and Grievance Mechanism

Any buyer can file a complaint with MahaRERA online — free of charge. MahaRERA adjudicating officers have the power to order refunds, interest payments, and compensation. The Appellate Tribunal can hear appeals. This formal mechanism replaced the earlier approach of filing civil suits (which took years).

7. Developer Disclosure Obligations

Every registered project on MahaRERA must display:

• Land title status and encumbrances
• Layout plans and building permissions
• List of approvals obtained and pending
• Quarterly construction progress updates
• Financial accounts of the project

What is MahaRERA and how effective has it been?

MahaRERA is Maharashtra’s state Real Estate Regulatory Authority — and one of India’s most effective implementations. As of 2025 it has registered over 48,000 projects and disposed of the majority of complaints filed.

• Projects registered: Over 48,000 as of 2025
• Complaints disposed: Over 28,000 (78% disposed rate)
• Conciliation forum: MahaRERA’s mediation mechanism has resolved thousands of disputes without formal adjudication
• Plotted development registration: Mandatory for plots above 500 sq.m land in Maharashtra since 2017

How do I check if a project is RERA registered in Maharashtra?

Go to maharerait.maharashtra.gov.in, open “Registered Projects,” and search by project name, developer name, or RERA number. Verify status, completion date, layout plan, and any complaints — all before you pay.

1. Go to maharerait.maharashtra.gov.in
2. Click on “Registered Projects” or “Search Project”
3. Enter the project name, developer name, or RERA registration number
4. Check: Project status (active/lapsed), completion date, number of units registered, developer details
5. Download the registered layout plan and compare with what the developer is showing you
6. Check if the project has any complaints filed against it

What should I check on MahaRERA before I sign?

Check nine things before signing: valid registration, realistic completion date, developer track record, open complaints, matching layout plan, disclosed land title, confirmed NA status, visible escrow details, and the agent’s own RERA licence.

1. RERA registration number is valid (not expired or lapsed)
2. Project completion date: What date has the developer committed? Is it realistic?
3. Developer track record: How many previous projects registered? All delivered on time?
4. Complaints filed: Any open complaints against this project or developer?
5. Layout plan matches: The plan on RERA matches what you are being shown on-site
6. Land title disclosed: Is the land title status marked as “clear” or are there encumbrances listed?
7. NA status confirmed: Is the land listed as NA converted on the MahaRERA registration?
8. Escrow account details visible: RERA registration must include escrow account information
9. Agent registration: The real estate agent selling to you must also be RERA-registered — check their license number

What does RERA NOT protect you from?

RERA governs developer accountability — not market outcomes. It does not guarantee appreciation, fix falling demand, or adjudicate land-title disputes, and it does not cover sub-threshold or already-completed projects.

• Price appreciation: RERA does not guarantee your plot will increase in value
• Market risk: If demand falls in your area, RERA cannot fix that
• Land value disputes: RERA governs developer accountability — it does not adjudicate title disputes
• Projects below threshold: Projects under 500 sq.m of land or fewer than 8 units do not require RERA registration
• Already-completed projects: RERA does not apply retrospectively to delivered projects

Frequently Asked Questions

Is RERA registration mandatory for all real estate projects in India?

Yes, for all projects with more than 500 sq.m land area or 8 units, RERA registration is mandatory before any marketing or sale. In Maharashtra, even plotted development projects above this threshold require MahaRERA registration. Selling without RERA registration is a criminal offence under Section 59 of RERA.

How do I check if a project is RERA registered in Maharashtra?

Visit maharerait.maharashtra.gov.in → “Registered Projects” → search by project name or developer name. You will see the RERA number, project status, completion date, and any complaints filed.

What can I do if my developer has violated RERA in Maharashtra?

File a complaint on MahaRERA’s online portal (maharerait.maharashtra.gov.in → “File Complaint”). You can claim refund with interest, delay compensation, or seek specific performance. MahaRERA’s Conciliation Forum may resolve your issue faster than formal adjudication.

Does RERA apply to land purchases (NA plots)?

Yes — in Maharashtra, plotted development projects with more than 500 sq.m of total land area must register under MahaRERA. This is a crucial protection for buyers of NA plots in branded projects. Always verify MahaRERA registration before booking any plot in a developer’s project.