What Is RERA?
RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is a central law that came into effect in 2017 to bring transparency, accountability and discipline to the real estate sector.
Under the Act, every state sets up its own Real Estate Regulatory Authority and appellate tribunal. In Punjab, this is the Punjab Real Estate Regulatory Authority (Punjab RERA), which handles project registration, agent registration and buyer complaints. Punjab also has its own property-related laws, which operate alongside RERA.
Why Was RERA Introduced?
Before RERA, buyers faced several problems:
- Projects delivered years late
- Super area inflated compared to actual usable area
- Funds from one project diverted to another
- Builders changing plans after booking
- Weak and slow dispute resolution
- Misleading advertisements
RERA addresses these through mandatory disclosures, financial discipline and a dedicated complaint system.
Key Features of RERA
1. Mandatory Project Registration
Projects above specified size limits must register with the state authority before they are advertised, marketed or sold. Generally, this applies to projects with land area above 500 square metres or more than 8 apartments, with some exemptions. Ongoing projects that had not received completion at the time of the Act were also brought under its scope.
2. Transparency in Information
Registered promoters must publish project details on the regulator's website, including approved plans, layout, land status, completion timeline, and promoter information. Buyers can verify claims independently.
3. Escrow Account for Buyer Funds
A major portion of the money collected from buyers, generally 70%, must be kept in a separate bank account and used only for that project's construction and land cost. This reduces the risk of diversion of funds.
4. Sale on Carpet Area
Apartments must be sold on the basis of carpet area, the actual usable floor space. This ends confusion created by inflated "super area" numbers.
5. Timely Possession and Compensation
If the builder delays possession beyond the agreed date, the buyer is entitled to interest on the amount paid. If the buyer delays payment, interest is chargeable on them too, so the rule is balanced.
6. Structural Defect Liability
The promoter is responsible for fixing structural defects reported within 5 years of possession, at no cost to the buyer.
7. Restrictions on Changes
Promoters cannot make major changes to sanctioned plans or structural designs without the consent of a prescribed majority of allottees.
8. Limit on Advance Payments
A promoter cannot take more than 10% of the property cost as an advance or application fee without first executing a registered agreement for sale.
9. Regulation of Real Estate Agents
Agents who facilitate sales in registered projects must also register with the authority, which improves accountability in the brokerage ecosystem.
10. Faster Grievance Redressal
Buyers can file complaints directly with the state RERA authority, which is designed to be faster and more accessible than ordinary civil litigation.
Why RERA Matters for You as a Buyer
- Safer investment: Verified approvals and financial safeguards reduce risk.
- Clarity on timelines: A declared completion date creates accountability.
- Fair pricing basis: Carpet area pricing makes comparison easier.
- Legal protection: You have a recognised forum if things go wrong.
- Better builder discipline: Public disclosure raises quality standards.
How to Check If a Project Is RERA Registered (Punjab)
- Ask the builder or agent for the RERA registration number. A genuine registered project will have one, and it should appear on advertisements.
- Visit the official Punjab RERA website and use the project search option.
- Search by project name, promoter name or registration number.
- Verify the details: promoter name, location, area, approved plan, completion date and status updates.
- Cross-check the information with what the builder has told you, including the documents you have been given.
If you cannot find the project, or the details do not match, do not pay until you get a satisfactory explanation.
Is RERA Applicable to Plots?
RERA can apply to plotted developments where the land area crosses the prescribed limit and the promoter develops the land and sells plots. However, an individual selling a single plot he or she owns generally does not fall within RERA's project registration requirement. This is why checking the layout approval and legal title of plots remains critical, even where RERA applies to the larger project.
What RERA Does Not Do
RERA is powerful, but it is not a guarantee against everything.
- It does not replace the need for title verification and legal due diligence.
- It does not cover small or exempt projects below the threshold.
- It cannot guarantee a builder's financial health forever.
- A RERA number does not automatically mean a project is high quality.
Treat RERA as a strong safety layer, not a substitute for your own checks.
What to Do If a Builder Violates RERA Norms
- Collect evidence: agreement, payment receipts, emails, brochures and advertisements.
- Send a written notice to the builder describing the issue and your demand.
- File a complaint with the Punjab RERA authority through its official channel, with documents and the prescribed fee.
- Attend hearings and respond within the stipulated timelines.
- Appeal if needed to the Real Estate Appellate Tribunal, if you are unhappy with the order.
You may also consult a property lawyer to strengthen your case.
Practical Checklist: Buying With RERA Safety
- RERA registration number verified on the official website
- Approved layout and building plan checked
- Agreement for sale signed and registered before large payments
- Price based on carpet area
- Completion date and penalty clauses clearly written
- Payment schedule linked to construction milestones
- All receipts and documents stored safely
Frequently Asked Questions
Is RERA registration mandatory for all projects?
No. It is mandatory for projects above the prescribed land area or unit threshold, with certain exemptions.
Can I buy from an unregistered project?
Legally, eligible projects must be registered before sale. Buying from an unregistered project exposes you to higher risk and fewer remedies.
What happens if the builder delays possession?
You may be entitled to interest on the amount paid for the delay, or to withdraw from the project with a refund and interest, as per the Act and the agreement.
Does RERA cover resale properties?
RERA mainly regulates promoters and registered projects. Resale transactions between individuals are not directly regulated, so legal due diligence matters more.
How long is the builder responsible for structural defects?
The Act provides for a five-year liability period from the date of possession for structural defects.
Where do I file a RERA complaint in Punjab?
Complaints are filed with the Punjab Real Estate Regulatory Authority through its official portal.
Final Thoughts
RERA has made buying property in India significantly safer, but it works best when you use it actively. Always verify registration, read the agreement carefully and keep every document.
Want to invest only in verified, RERA-compliant projects? Contact CMR Estates for transparent guidance and trusted property options in and around Mohali.
Disclaimer: This article is for general information and not legal advice. RERA thresholds, rules and timelines can be amended. Please verify details on the official Punjab RERA website or consult a qualified property lawyer.