Developer project registration mandatory. Buyer protection — 1%/month late penalty, escrow accounts, 5-yr defect liability. State-wise: MahaRERA, K-RERA, TN RERA.
RERA = Real Estate (Regulation and Development) Act 2016. Real estate transparency + buyer protection law. KEY: (1) Project registration mandatory before launch. (2) Buyer money in escrow account. (3) 1% per month penalty for late delivery. (4) Project details public on RERA portal. (5) State-wise implementation — MahaRERA (Maharashtra), Karnataka RERA, Tamil Nadu RERA. (6) Developer must register projects > 500 sqm or > 8 apartments.
RERA registration via state RERA portal. PROCESS: (1) Upload project documents — approvals, plans, financials. (2) Carpet area, common area, sale area details. (3) Construction milestones + delivery timeline. (4) Promoter details + financial bank. (5) ESCROW ACCOUNT setup. (6) Pay registration fee (varies by state, project size). (7) RERA Registration Number issued. (8) Display on all marketing materials.
BUYER RIGHTS: (1) Booking advance limited to 10%. (2) Construction-linked payments (no full upfront). (3) 1%/month penalty for delayed delivery. (4) Refund + interest if project cancelled. (5) Defect liability period 5 years. (6) Carpet area definition standardized. (7) Common amenities as committed. (8) RERA complaint resolution mechanism. (9) Project on RERA portal for verification.
Combined regulatory: (1) RERA registration mandatory. (2) 80IBA for affordable housing developer tax holiday. (3) GST 1% on affordable / 5% on regular under-construction. (4) PMAY-CLSS for buyer subsidies. (5) State-specific stamp duty. STRATEGIC: All eligible affordable housing projects need RERA + 80IBA + GST registration combined for compliance + benefits.
RERA NON-COMPLIANCE PENALTIES: (1) UNREGISTERED PROJECT: 10% of estimated project cost + cease + desist orders. (2) MISLEADING ADVERTISEMENT: 5% of project cost. (3) NON-DEPOSITORY: 5% of receipts not in escrow. (4) PROMOTER PENALTY: Up to ₹10cr + imprisonment 3 years. SERIOUS deterrent. Buyers can also claim damages + interest.