What is RERA and Why Was It Created?
The Real Estate (Regulation and Development) Act, 2016 — commonly known as RERA — was a watershed moment for Indian home buyers. Before RERA, real estate transactions were largely unregulated. Builders could accept deposits, delay projects indefinitely, change specifications without penalty, and withhold information from buyers.
RERA changed all of that. Since its implementation in Maharashtra through MahaRERA in May 2017, buyers have had legally enforceable rights, transparent access to project information, and a fast-track dispute resolution mechanism.
What Projects Must Be RERA Registered?
In Maharashtra, all real estate projects must be registered under MahaRERA if they meet any of these criteria:
- The project has more than 8 apartments (or 8 units of any type)
- The land area is more than 500 sq.m.
- Any new phase of an existing project
Renovation or repair projects that do not involve marketing, advertising, or sale are exempt. Pure commercial projects are also subject to RERA registration if they meet the above thresholds.
How to Verify RERA Registration in Maharashtra
Verifying RERA registration is simple and free. Follow these steps:
- Visit maharera.mahaonline.gov.in
- Click on "Registered Projects"
- Search by project name, developer name, or RERA number
- Review the project details page — it shows the registered carpet area, amenities, financials, and possession date
Crucially, compare the project's actual marketing claims against its RERA registration. Any discrepancy is a red flag and potentially illegal.
Key Rights RERA Gives You as a Mumbai Home Buyer
1. Right to Accurate Information
Builders must disclose all project details on MahaRERA — approved plans, carpet areas, payment schedules, project status updates, and financial details. This information is publicly accessible.
2. Right to Timely Possession
If a builder delays possession beyond the RERA-registered date, you have two options: withdraw and get a full refund with 10.05% interest, or continue and receive 10.05% annual interest on your paid amounts for the delay period.
3. Right to Agreed Specifications
Every detail listed in your sale agreement and on MahaRERA is legally binding. If the builder changes specifications (carpet area, materials, amenities), you can claim compensation or even cancel the agreement.
4. Protection of Your Money (Escrow)
Builders must maintain a dedicated escrow account for each project and deposit at least 70% of all buyer collections into it. This money can only be withdrawn proportional to construction completion — preventing fund diversion to other projects.
5. Right to Structural Defect Warranty
For 5 years after possession, you can hold the developer liable for any structural defects. The builder must rectify defects free of charge within 30 days of being notified.
What Happens If a Builder Violates RERA?
MahaRERA has significant enforcement powers:
- Financial penalties up to 10% of the project's registered cost for non-compliance
- Imprisonment up to 3 years for repeated violations or fraud
- Project registration can be revoked, preventing further sales
- Orders for refund, compensation, and interest payable to aggrieved buyers
How to File a RERA Complaint in Maharashtra
Filing a MahaRERA complaint is straightforward and affordable:
- Register on the MahaRERA website and create a complainant account
- File a complaint online with supporting documents (sale agreement, payment receipts, builder correspondence)
- Pay the filing fee of ₹5,000 (for consumers)
- Complaints are typically heard within 60 days
- MahaRERA adjudicating officers can issue binding orders, enforce refunds, and impose penalties
RERA and Resale Properties
RERA primarily covers new project sales. However, even for resale transactions, several protections apply. The original RERA registration details of the project are still accessible and binding on subsequent owners. Any ongoing structural defect liabilities also transfer with the property.
Red Flags: Signs That a Builder is Not RERA Compliant
- Asking for payments in cash (RERA requires all transactions to be traceable)
- Unable to provide RERA registration number
- Showing different plans/specifications than what's on MahaRERA
- Project is not listed on MahaRERA at all
- Pressuring you to sign agreements without legal review
- Claiming RERA doesn't apply to their project without documented evidence
Hall Mark Realtors and RERA Compliance
At Hall Mark Realtors, we are a MahaRERA registered brokerage firm. Every property we list undergoes RERA verification before being presented to buyers. We never take buyers to unregistered projects, and we provide complete document support — from RERA verification to sale agreement review.
If you have questions about a specific project's RERA status or want to verify the credentials of a developer you're considering, our team is available for a free consultation.
