Regulatory & Tax

RERA

Real Estate (Regulation and Development) Act, 2016 — regulates real estate developers and protects homebuyers in India.

RERA requires every real estate project of more than 8 apartments or 500sqm to be registered with the state RERA authority before any sale, advertisement, or booking. It mandates 70% of project funds to be in escrow, prescribes penalty for delays, and creates a fast-track grievance forum for buyers.

For real estate brokers and small developers in India, RERA registration is mandatory before any marketing — including WhatsApp broadcasts about a project. The RERA registration number must appear on every advertisement, brochure, and digital communication.

State RERA authorities (Maharashtra MahaRERA, Karnataka KRERA, Telangana TGRERA, etc.) have varying enforcement strictness. Maharashtra is the most aggressive with builder penalties.

India context

RERA-compliant WhatsApp marketing is a tight rope — every promotional message about a project must include the RERA registration number and 'Subject to RERA terms' disclaimer. Templates need legal review before submission to Meta. Non-compliant broadcasts can trigger fines from both RERA and Meta.

Examples

  • A Pune developer launching a 50-flat project must register with MahaRERA before listing on 99acres or sending WhatsApp blasts.
  • Real estate brokers (sub-agents) need separate RERA broker registration.

FAQ

Does RERA apply to plot sales?

Yes — plotted developments above 500sqm or with more than 8 plots fall under RERA. Resale of individual plots between owners doesn't.

Can I advertise a project before RERA registration?

No. Advertising, marketing, sales, or booking before RERA registration is a violation. Penalty: up to 10% of project cost.

What's the difference between RERA and the developer's own escrow?

RERA mandates a project-specific escrow with 70% of project funds. Developers can have additional escrows, but the RERA escrow is non-negotiable.

Related concepts

MahaRERAreal estateescrowhomebuyer rightsDPDP

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