Understanding RERA
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency, accountability, and efficiency to the real estate sector. It protects homebuyers’ interests and establishes a regulatory authority in each state.
Who Must Register
Promoters with projects having plot area >500 sq.m. or more than 8 apartments must register before advertising, selling, or booking.
Registration Process
Application to state RERA authority with project details, land title, approvals, financial projections, and promoter details. Gujarat RERA operates at gujrera.gujarat.gov.in.
Escrow Account
70% of funds received from allottees must be deposited in a separate escrow account and used only for land and construction costs of that project.
Agent Registration
Real estate agents must register with RERA before facilitating any sale or purchase of registered projects. Separate registration for each state.
“RERA has fundamentally changed how real estate projects must be managed, compliance is not optional; it is the foundation of every project’s legal standing.”
V J Desai & Co. LLP, RERA AdvisoryKey Compliance Requirements
Quarterly Updates
Promoters must update the RERA portal every quarter with construction progress, approvals obtained, and funds utilised, within 15 days of quarter-end.
Annual Financial Disclosures
Audited financial statements, CA-certified statements of funds received and utilised must be uploaded annually for each registered project.
Project Extension
Extension beyond the registered completion date requires application to RERA with valid reasons. Force majeure grounds are available but require documentation.
Advertisement Compliance
All advertisements must include the RERA registration number. Misrepresentation in ads is an offence under Section 89 of RERA.
Agreement for Sale
Promoters must execute a registered Agreement for Sale before receiving more than 10% of the unit price. Template prescribed by state authority must be followed.
Structural Defect Liability
Promoters are liable for structural defects for 5 years after possession. Any defect must be rectified within 30 days of being brought to notice.
RERA Penalty Framework
| Violation | Section | Penalty |
|---|---|---|
| Non-registration of project | Section 59 | Up to 10% of estimated project cost |
| Continued non-registration | Section 59(2) | Imprisonment up to 3 years + fine up to 10% of cost |
| Non-compliance with RERA orders | Section 63 | Up to 5% of estimated project cost per day |
| Non-registration of agent | Section 62 | Up to ₹10,000 per day, max 5% of plot cost |
| False information in registration | Section 60 | Up to 5% of estimated project cost |
| Failure to comply with Appellate Tribunal | Section 64 | Imprisonment up to 1 year + fine |
Gujarat RERA Updates
Revised Quarterly Disclosure Format for Developers
Gujarat RERA has updated the quarterly update format. Developers must now provide detailed unit-wise status and financial utilisation data.
Key Update →Extension Applications, New Documentation Requirements
RERA has clarified documentation required for project extension applications including CA certificate on fund utilisation and construction progress report.
Read More →Escrow Account Audit Requirements Enhanced
Promoters must now submit auditor-certified escrow utilisation statements quarterly. Non-compliance attracts automatic penalty under RERA.
Read More →Need RERA compliance support?
We handle RERA registration, quarterly updates, extensions, and dispute response for real estate developers.