The Real Estate (Regulation and Development) Act, 2016 — commonly known as RERA — is arguably the most significant legislation for the Indian real estate sector in decades. Before RERA, homebuyers had limited legal recourse against delays, project abandonment, or misrepresentation by developers. RERA changed this equation fundamentally by making project registration mandatory, requiring escrow of 70% of buyer funds, and creating a statutory dispute redressal mechanism through state RERA authorities.
For builders, developers, and real estate agents, RERA registration is not optional — it is a statutory requirement under Section 3 and Section 9 of the RERA Act. Selling, marketing, or advertising a real estate project without RERA registration attracts severe penalties of up to 10% of the project cost and potential imprisonment. Yet many small developers and agents operating in Tier-2 and Tier-3 cities remain unaware of the exact registration requirements. This guide provides the complete picture.
RERA registration is mandatory for all projects with plot area > 500 sqm OR 8+ units. All real estate agents must also register. Penalty for non-registration: up to 10% of project cost + up to 3 years imprisonment. Promoters must maintain 70% escrow and file quarterly updates. Register on your state's RERA portal (MahaRERA, HRERA, TNRERA, etc.) online. Agent registration: typically valid for 5 years.
Our real estate law experts handle project and agent registration on all state RERA portals — document preparation, portal filing, and follow-up.
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted by the Parliament of India and came into full force on 1 May 2017. It created a regulatory framework for the real estate sector in India, establishing state-level Real Estate Regulatory Authorities that oversee project registrations, disputes, and compliance.
Before RERA, the Indian real estate market was characterised by information asymmetry, lack of standardisation in sale agreements, frequent delays without penalty, and limited buyer recourse. Developers could advertise projects with speculative completion timelines, collect booking advances and divert them to other projects, and delay possession for years without legal consequence.
RERA addresses these issues through four fundamental interventions:
📌 Applicable Law: Real Estate (Regulation and Development) Act, 2016 and state-specific RERA rules enacted by each state. Central Act applies uniformly; states can modify procedural rules but cannot dilute buyer protection provisions.
RERA creates two categories of mandatory registrants:
The term "promoter" under RERA has a broad definition — it includes any person (individual, company, cooperative society, or authority) who constructs or causes to be constructed an apartment, plot, or building for the purpose of sale. This includes:
Any individual or entity that facilitates buying or selling of RERA-registered properties — including brokers, consultants, and channel partners — must obtain RERA agent registration from the state authority. This applies regardless of whether the agent operates full-time or part-time, and regardless of business size.
Not all real estate projects must register under RERA. Section 3 of the Act specifies the threshold:
⚠️ RERA Registration Required If: The proposed development area exceeds 500 square metres of land OR the project proposes to develop 8 or more apartments/units — whichever condition is met first. Both residential and commercial developments are covered.
| Project Type | Threshold for Mandatory RERA Registration | Exempt? |
|---|---|---|
| Residential apartments (new) | 8+ units OR land area > 500 sqm | No — mandatory |
| Residential plotted development | Land area > 500 sqm | No — mandatory |
| Commercial office/retail | 8+ units OR area > 500 sqm | No — mandatory |
| Ongoing project (pre-RERA, no CC) | Applicable on remaining inventory at commencement | Must register ongoing portion |
| Project with Completion Certificate (CC) | Not applicable — project complete | Yes — exempt |
| Renovation/repair of existing building | Not applicable | Yes — exempt |
| Small project below both thresholds | Below 500 sqm AND fewer than 8 units | Yes — exempt |
Section 9 of the RERA Act mandates that no person shall act as a real estate agent to facilitate purchase or sale of any plot, apartment, or building in a RERA-registered project without obtaining agent registration from the state RERA authority.
The agent registration process is simpler than project registration and can be completed online in most states. An agent receives a unique RERA agent registration number (similar to the project registration number), which must be quoted in every property transaction they facilitate. Agents failing to obtain registration face a penalty of ₹10,000 per day, up to a maximum of ₹5 lakh.
Agent registration is typically valid for 5 years and must be renewed before expiry. During renewal, the agent must provide records of all transactions facilitated during the previous registration period.
| Document Category | Specific Documents |
|---|---|
| Promoter Identity | PAN card, Aadhaar/passport, address proof; for companies: Certificate of Incorporation, MOA, AOA, board resolution authorising signatory |
| Financial Statements | Audited balance sheets, P&L for last 3 financial years; Income Tax Returns for 3 years |
| Land Documents | Title deed/sale deed; encumbrance certificate; property tax receipts; advocate's title certificate confirming clear title |
| Approvals & Plans | Commencement certificate/building permit; approved building plans, layout plans; environmental clearance (if applicable); fire NOC (if applicable) |
| Project Details | Proforma of allotment letter; proforma of agreement for sale; proforma of conveyance deed; declaration of carpet area, open area, common area |
| Financial Projections | CA certificate on financial capability to complete the project; details of any loans/mortgages on the land; escrow bank account details |
| Other | Details of any litigation pending on the land or project; list of previous RERA registrations (if any); declaration under Section 4(2)(l) |
| State | Project Registration Fee (Residential) | Agent Registration Fee |
|---|---|---|
| Maharashtra (MahaRERA) | ₹10/sqm of open land (min ₹10,000; max ₹1,00,000 for layouts; ₹50,000 for apartments up to 1,000 sqm) | Individual: ₹10,000; Company: ₹1,00,000 |
| Karnataka | ₹10,000 to ₹5,00,000 based on project area | Individual: ₹25,000; Company: ₹1,00,000 |
| Haryana (HRERA-Gurugram) | ₹5/sqm (min ₹25,000; max ₹5,00,000) | Individual: ₹10,000; Company: ₹50,000 |
| Tamil Nadu | ₹5/sqm for apartments; ₹2/sqm for plots | Individual: ₹10,000; Firm/Company: ₹50,000 |
| Uttar Pradesh | ₹10/sqm for residential (max ₹5,00,000) | Individual: ₹10,000; Company: ₹50,000 |
| Gujarat | ₹500 to ₹10,00,000 based on project size (slab rates) | Individual: ₹10,000; Company: ₹1,00,000 |
| Rajasthan | ₹5/sqm (min ₹10,000; max ₹5,00,000) | Individual: ₹10,000; Company: ₹25,000 |
📌 Fee Verification: RERA fees are updated periodically by each state RERA authority. Always verify the current fee schedule on your state's RERA portal before applying. Fees are paid online via net banking, credit card, or NEFT.
Compile all required documents: land title documents, approved building plans, sanction letters, promoter's PAN, audited financial statements for 3 years, CA certificate on project financials, proforma agreements. All documents must be in digital format (PDF, typically under 5MB each).
Visit your state's RERA portal (e.g., maharera.mahaonline.gov.in for Maharashtra). Register as a "Promoter" (not "Agent") using your email and mobile number. You will receive OTP-based verification. Complete your profile with promoter/company details.
Complete all sections of the online project registration form: project details (name, address, type — residential/commercial), land details (survey number, area, title), proposed construction details (number of units, carpet area, FSI used), timeline, and financial details (total project cost, loan details, escrow bank account number).
Upload all required documents in the prescribed format. Most portals have specific size limits (typically 2–5 MB per file). Ensure all PDFs are legible and properly oriented. Documents in regional languages may need to be accompanied by English translations in some states.
The portal calculates the applicable fee based on the project area and type. Pay online via net banking, credit/debit card, or UPI. Save the payment receipt — the transaction reference number is required if there are any payment disputes.
After submission, the application is reviewed by the RERA authority. Processing time varies by state — typically 7 to 30 days. Upon approval, you receive a unique RERA Registration Number (e.g., P51800012345 for MahaRERA projects). This number must be quoted in all advertisements, brochures, sale agreements, and booking receipts.
Immediately after registration, open a designated bank account for the project with any scheduled bank. Register this account with RERA. From day one, ensure that 70% of all buyer amounts received are deposited into this escrow account. The account can only be operated for construction-related withdrawals verified by a CA/engineer/architect certificate.
Every registered promoter must update the project's progress on the state RERA portal every quarter, within 15 days of the end of each quarter. The quarterly update must include:
🛑 Consequence of Missing Quarterly Update: Failure to file quarterly updates can result in the RERA authority issuing a show-cause notice and suspending the project's registration. Homebuyers can access the quarterly update history on the RERA portal — a gap in updates is a serious red flag that triggers complaints.
The escrow requirement under Section 4(2)(l)(D) of the RERA Act is one of its most significant buyer protection features. The rule is simple: at least 70% of all amounts collected from buyers for a project (advances, booking amounts, stage payments) must be deposited into a separate designated bank account within 15 days of collection.
⚠️ RERA Audit: The RERA authority can conduct audits of the escrow account at any time. A CA must certify quarterly that withdrawals were made only for legitimate project costs. If audit reveals diversion of funds, the authority can freeze the account and register a criminal complaint against the promoter.
| Violation | Penalty Provision | Maximum Penalty |
|---|---|---|
| Promoter failing to register project | Section 59 | 10% of estimated project cost |
| Providing false information in registration | Section 60 | 5% of estimated project cost |
| Violation of RERA orders or directions | Section 63 | 5% of project cost per day, up to 5% of total cost |
| Real estate agent operating without registration | Section 62 | ₹10,000/day, max ₹5,00,000 |
| Accepting more than 10% advance without sale agreement | Section 13 | Complaint-based — buyer entitled to refund with interest |
| Failure to maintain escrow account | Section 59/63 | Up to 10% of project cost + criminal prosecution |
Our legal team assists developers and agents across Maharashtra, Karnataka, Delhi, Haryana, UP, and all major states with RERA registration.
RERA has fundamentally restructured the accountability framework in Indian real estate. For builders and developers, it is not a burden — it is a trust-building mechanism. Projects with visible RERA registration numbers, publicly accessible quarterly updates, and escrow-compliant financial structures sell faster and attract more credible buyers. For agents, RERA registration is a credential that establishes legitimacy in an increasingly regulated market.
The penalties for non-compliance are designed to be deterrent — up to 10% of project cost is not a slap on the wrist, it is potentially the entire profit margin of a mid-sized residential project. The 70% escrow requirement and quarterly reporting obligations are equally serious. The time to comply is before the first advertisement goes live — not after the first buyer complaint arrives at the RERA authority.
📌 Also Read: Private Limited Company Registration India | GST Registration Guide India | LLP Registration India 2026 | Trade Licence Registration India
Disclaimer: This article is for general information purposes only and does not constitute legal advice. RERA rules vary significantly across states and are updated periodically. Consult a qualified real estate lawyer or RERA compliance expert for advice specific to your project or agency registration. All figures are based on RERA Act provisions and state rules effective as of June 2026.