RERA makes it mandatory for every builder to get his project registered in RERA if the land on he is developing the project to exceed 500 square meters or more than eight units.

As per section 4(2)(I)D), every promoter is required to open RERA separate account in a scheduled bank to cover the cost of construction and land cost of the project

Section 14(3) of the RERA Act, 2016 provides the remedy to the allottees in case of any structural defects incurred in the five years from the date of giving the possession then the promoter is liable to rectify the defect at his own cost.

10 Rules Everyone should know before investing in Real Estate

1. RERA Registration – RERA makes it mandatory for every builder to get his project registered in RERA if the land on he is developing the project to exceed 500 square meters or more than eight units. As per section 3, no builder can do a sale or advertisement without getting his project registered in RERA.

2. Separate account- As per section 4(2)(I)D), every promoter is required to open RERA separate account in a scheduled bank to cover the cost of construction and land cost of the project. Every builder has to open a separate account in which he has to deposit 70 percent of the amount collected from allottees. Withdrawal from this account can be done after submission of the certificate of CA, architect, and engineer.

3. Disclosure of carpet area -Now as per the RERA, every builder needs to disclose the carpet area of the inventory for sale in brochures and agreement to sale. Carpet area has been defined in section 2(g) as “carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’”.

4. Defect Liability-Section 14(3) of the RERA Act, 2016 provides the remedy to the allottees in case of any structural defects incurred in the five years from the date of giving the possession then the promoter is liable to rectify the defect at his own cost. Further, in the event of promoter’s failure to rectify such defects within 30 days, the aggrieved allottee is entitled to receive appropriate compensation which is to be decided by the concerned state RERA Authority

5. Standard Agreement to sale – RERA has given the specified format of an agreement to sale. So every builder will be using the format provided by the RERA of the concerned state.

6. Quarterly update on construction – Builders has to do Quarterly update on which they have to update project details including the number of units sold, approval taken to date, Certificate from professionals. It will help buyers to track online the progress of the project.

7. Advance agreement to sale – Builder cannot take more than 10% of the total cost of the unit before entering into a written agreement.

8. Complaint filing- If the buyer has any complaint about the builder /agent, he can make a complaint to RERA. The RERA will resolve the complaint within 60 days.

9. Approval for alteration in the sanctioned plan- If a builder wants to make any changes in plan and common areas of society, then he has to take the approval of 2/3 allottees.

10. Agent Registration – Every agent /property dealer is required to get registered in RERA.

Latest Updates:-

• Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting
  Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting As India continues to strengthen its indirect tax framework, several important changes under the Goods and Services Tax (GST) regime have been introduced, effective from April 1, 2025, and beyond. These reforms are aimed at enhancing ease […]
• Tax Implications of ESOPs and RSUs for Employees
  Tax Implications of ESOPs and RSUs for Employees Employee Stock Option Plans (ESOPs) and Restricted Stock Units (RSUs) have become increasingly popular as part of employee compensation packages, especially in multinational corporations and startups. These instruments are not just used to reward performance but are key tools in retaining talent. However, […]
• ITR Filing Deadline Extended: New Last Date is September 15
  ITR Filing Deadline Extended: New Last Date is September 15 The deadline for filing income tax returns for FY 2024–25 (AY 2025–26) was moved from July 31 to September 15 by the Income Tax Department on Tuesday. “Considering the time needed for system readiness and the rollout of Income Tax Return (ITR) utilities […]
• ITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing Portal
  ITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing Portal As the Income Tax Return (ITR) Filing Season 2025 draws near, it’s time for taxpayers—especially first-time filers—to get ready by registering on the official Income Tax e-Filing Portal. Designed as a Mission Mode Project under the National E-Governance […]
• Why Reconciling AIS and TIS is Crucial Before Filing ITR
  Why Reconciling AIS and TIS is Crucial Before Filing ITR As Income Tax Return (ITR) season kicks off, many taxpayers are discovering two critical tools on the Income Tax portal — AIS (Annual Information Statement) and TIS (Taxpayer Information Summary). If you’re still relying only on Form 26AS to prepare your […]