Header Outline:

  1. Introduction to RERA
  2. Rule 1: Registration of Projects and Agents
  3. Rule 2: Disclosure of Information
  4. Rule 3: Adherence to Project Plans
  5. Rule 4: Clear Title of Property
  6. Rule 5: Timely Completion of Projects
  7. Rule 6: Use of Escrow Account
  8. Rule 7: Protection of Buyer’s Interest
  9. Rule 8: Redressal of Grievances
  10. Rule 9: Penalties for Non-Compliance
  11. Conclusion: Importance of Knowing RERA Rules


Are you planning to invest in real estate? Understanding the rules and regulations of the Real Estate Regulatory Authority (RERA) is crucial. RERA aims to protect the interests of home buyers and promote transparency in the real estate sector. Here are 9 important rules of RERA every buyer should know:

Rule 1: Registration of Projects and Agents

Developers and agents must register themselves and their projects with the Real Estate Regulatory Authority. This registration process involves providing detailed information about the project, including land ownership, approvals, timeline for completion, and financial details. Buyers should verify the registration status of both the project and the agents involved to ensure they are dealing with authorized entities.

Rule 2: Disclosure of Information

Transparency is key in real estate transactions. Developers must disclose all relevant information about the project to buyers, including project plans, approvals, layout details, carpet area, amenities, and any other specifications. Buyers should carefully review all documents provided by the developer to ensure they have a clear understanding of what they are investing in.

Rule 3: Adherence to Project Plans

Developers are required to adhere to the approved project plans and specifications. Any deviations from the approved plans must be communicated to the buyers and approved by the relevant authorities. Buyers should conduct regular site visits and inspections to ensure that the construction progress aligns with the approved plans and no unauthorized changes are being made.

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Rule 4: Clear Title of Property

Buyers should receive properties with a clear and marketable title, free from any legal encumbrances or disputes. Developers are responsible for providing all necessary documents related to the title of the property, including ownership documents, land records, and encumbrance certificates. Buyers should conduct a thorough due diligence process to verify the title of the property before making any payments.

Rule 5: Timely Completion of Projects

Delays in project completion are a common concern for home buyers. RERA mandates developers to complete projects within the agreed timeline, failing which they may face penalties. Buyers should carefully review the project timeline and ensure that it is realistic before making any commitments. Additionally, buyers should include clauses in the agreement that provide for compensation in case of delays beyond the stipulated timeline.

Rule 6: Use of Escrow Account

To prevent misuse of funds collected from buyers, developers are required to maintain a separate escrow account for each project. All payments made by buyers must be deposited into this account and used only for the specific project. Buyers should verify the existence of an escrow account and ensure that their payments are being deposited into it as per the agreed-upon payment schedule.

Rule 7: Protection of Buyer’s Interest

RERA protects buyers against structural defects or deficiencies in the property. Developers are required to rectify any defects reported by buyers within a specified timeframe, failing which buyers are entitled to compensation. Buyers should thoroughly inspect the property during the possession stage and report any defects to the developer in writing to avail themselves of their rights under RERA.

Rule 8: Redressal of Grievances

In case of any disputes or grievances, buyers have the right to file complaints with the Real Estate Regulatory Authority. RERA provides a quick and efficient mechanism for resolving disputes between buyers and developers through conciliation and adjudication. Buyers should maintain all relevant documents and evidence to support their case and seek legal advice if necessary to ensure their grievances are addressed appropriately.

Rule 9: Penalties for Non-Compliance

Developers face stringent penalties for non-compliance with RERA rules, including fines, imprisonment, and project revocation. Buyers should be aware of their rights and the penalties for non-compliance to hold developers accountable for any violations. Reporting any instances of non-compliance to the Real Estate Regulatory Authority can help ensure that appropriate action is taken against errant developers, protecting the interests of all stakeholders involved.


Knowing and understanding the important rules of RERA is crucial for every home buyer. By familiarizing themselves with these rules and regulations, buyers can protect their investments, ensure transparency and accountability in real estate transactions, and safeguard their interests against any potential risks or disputes. Compliance with RERA rules not only benefits buyers but also contributes to the overall growth and stability of the real estate industry.


Q1. What is the penalty for project delays under RERA? A1. Developers may face penalties of up to 10% of the project’s estimated cost for delays in project completion.

Q2. Can developers change the project plans after registration with RERA? A2. No, developers cannot make any changes to the project plans without obtaining the consent of the buyers.

Q3. How can buyers verify if a project is registered under RERA? A3. Buyers can visit the official website of the respective state’s RERA authority and search for the project’s registration details using its name or developer’s name.