RERA Checks Before Booking Property – 8-Point Buyer Checklist (India 2026)
What RERA Is and Why It Matters
The Real Estate (Regulation and Development) Act 2016 introduced state-level regulatory authorities for real estate. All projects above 500 sqm or 8 units must be registered with state RERA. Builder must:
- Disclose full project details (timeline, approvals, financials)
- Keep 70% of buyer payments in escrow account (cannot divert to other projects)
- Compensate buyers for delays beyond promised possession date
- Honor specifications and amenities promised
- Refund + interest if project cancelled
Pre-RERA (before 2017), buyers had little legal protection. Post-RERA, registered projects offer significant safeguards — but only if you actually verify and use the protections.
The 8-Point Checklist
Check 1: RERA Registration Verification (15 minutes)
Visit your state RERA website (maharera.maharashtra.gov.in for Maharashtra, rera.kar.nic.in for Karnataka, etc.).
Search by project name OR builder name OR RERA registration number.
What you should see:
- Project registration certificate (with unique RERA number)
- Builder/promoter details
- Original approved plan
- Stage-wise construction status
- Number of units, types, prices
- Promised possession date
Red flags:
- Project not registered (mandatory if above thresholds)
- Registration expired
- “Awaiting registration” – do not book
- Builder name on portal does not match marketing material
Check 2: Quarterly Progress Tracker (30 minutes)
Builders must update quarterly progress on RERA portal. Check:
- Construction progress percentage
- Money received from buyers vs spent on construction
- Whether building is on schedule vs original timeline
- Delays explained (or not)
Red flags:
- Last update older than 6 months
- Money received but minimal construction progress (signals diversion)
- Repeated delay disclosures without compensation
Check 3: Escrow Account Compliance (10 minutes)
Builders must deposit 70% of buyer collections into project-specific escrow account. Money can only be withdrawn for that project’s construction (verified by architect/CA certificates).
This protects buyer money from being diverted to builder’s other projects.
How to verify:
- Check RERA portal for escrow bank details
- Ask builder to confirm escrow account in writing
- Demand escrow account number in booking documents
Red flags:
- Builder reluctant to share escrow details
- Builder asks for payment to “promoter account” instead of escrow
- No CA certificate for escrow withdrawals
Check 4: Carpet Area Definition (10 minutes)
RERA mandates carpet area (RERA definition) as the official measurement, not super built-up or built-up. Carpet area = actual usable floor space inside walls.
Typical conversions:
- Carpet area to Built-up area: +10-15%
- Built-up to Super built-up: +20-30% (depending on common area share)
- Carpet to Super built-up: +30-45% total
Why this matters: A property advertised as “1,200 sqft” super built-up may have carpet area of only 800-850 sqft. Per-sqft price comparison must use same measurement.
What to check:
- Carpet area mentioned in RERA registration
- Builder Buyer Agreement quotes carpet area (RERA-compliant)
- Per-sqft price calculated on carpet (not super built-up)
Check 5: Possession Date + Penalty Clause (15 minutes)
RERA promised possession date is binding. Builder must compensate for delays.
Typical compensation: 2% above SBI MCLR per annum on amount paid, OR refund + interest if buyer chooses to exit.
What to verify:
- Promised completion date in RERA registration
- Builder Buyer Agreement specifies penalty rate
- Penalty applies from “promised date” not “actual date”
- Specific exit clause if delay exceeds 1 year
Red flags:
- Vague possession date (“approximately Dec 2027”)
- Weak penalty clauses (Rs.5/sqft/month is meaningless)
- Force majeure clauses too broad (cover normal construction delays)
Check 6: All Approvals in Place (20 minutes)
Verify project has all statutory approvals:
- Land title clearance
- Building plan sanction (BMC/local municipal corporation)
- Environmental clearance (for projects above threshold)
- Fire safety NOC
- Airport authority NOC (if near airport)
- Pollution control clearance
- Water and sewage approvals
- Occupancy Certificate (for ready-to-move; mandatory for legal occupancy)
For under-construction: approvals at start of construction. For ready-to-move: Occupancy Certificate is critical.
Buying without OC means you cannot legally occupy; mortgage may not be possible; resale very difficult.
Check 7: Builder Track Record (45 minutes)
Search the builder name on:
- RERA portal — all past and current projects
- Google news — any controversies, delays, legal issues
- Resident forums (Facebook groups, magicbricks reviews)
- Local newspaper archives — major project history
What you are checking:
- Previous projects delivered on time or significantly delayed?
- Construction quality from existing residents?
- Builder responsiveness to defects post-possession?
- Any financial distress / pending insolvency?
Tier 1 builders (high reliability): DLF, Lodha, Prestige, Brigade, Sobha, Mahindra Lifespaces, Tata Housing
Tier 2 (mixed track): Many regional builders; case-by-case
Tier 3 (high risk): Small unknown builders without history
Check 8: Pending Litigation (20 minutes)
Search:
- NCLT (National Company Law Tribunal) for insolvency proceedings
- RERA portal for buyer complaints against the builder
- Consumer courts for past complaints
- State High Court database (where accessible) for ongoing cases
Red flags:
- Multiple buyer complaints in last 12 months
- Insolvency case filed against builder
- Ongoing land title disputes
- Defamation/civil suits against directors
Documents to Collect Before Booking
- RERA registration certificate (download from portal)
- Quarterly progress report (latest)
- Approved building plan
- Environmental clearance certificate
- Fire NOC
- Land title documents (sale deed of land to builder)
- Specifications + amenities document
- Sample Builder Buyer Agreement
- Payment schedule
- Sample sale deed for the project
Take these to a property lawyer for review (Rs.5-25K). Worth it for any Rs.50L+ purchase.
Buyer Protections Under RERA
- Refund + interest if project cancelled or delayed beyond agreed period (typically 1 year grace)
- No change to project layout without 2/3 buyers’ consent
- Defect liability period of 5 years (builder must repair structural defects free)
- Specific performance – builder must complete as promised, not substitute units
- Common area transfer to residents association within 3 months of project completion
- Escrow protection of 70% buyer funds
How to File RERA Complaint
If builder violates RERA:
- Submit written complaint via state RERA portal (Rs.1,000-5,000 fee)
- Include evidence (emails, payment receipts, contract clauses)
- RERA adjudicates typically within 60-90 days
- Orders compliance + compensation if violation found
- Builder appeals to RERA Appellate Tribunal if disputed
RERA orders have been generally pro-consumer; builders comply or face escalating penalties.
Combined Red Flags – Walk Away If You See These
- Project not RERA registered (and above threshold)
- No OC for ready-to-move
- Builder asks for cash payment portion
- Multiple ongoing RERA complaints
- Construction stuck for 6+ months
- Builder Buyer Agreement not aligned with RERA disclosures
- Major land title disputes
- Bank loan rejected for the specific project (signals due-diligence concerns)
FAQs
Is RERA registration mandatory for plots / villas / small projects? Depends on state-specific thresholds. Generally 500 sqm or 8 units. Verify on state portal.
Can I rely on RERA disclosure alone, or do I still need a lawyer? Lawyer review recommended for Rs.50L+ purchases. RERA disclosure is one input; lawyer reads BBA and title clearance independently.
What if builder shows fake RERA certificate? Verify on RERA portal directly. Builder copies are not authoritative.
How long does RERA registration take? 30-90 days typically. If builder says “registration applied” without certificate yet, do not book.
Does RERA apply to resale property? Original RERA registration applies to project. Resale is governed by general contract law. Check original RERA + OC + sale deed chain.
What if my project was sold before RERA came into force? Projects launched before May 2017 are not RERA-registered but ongoing. Some states require post-RERA compliance for projects ongoing as of registration deadline.
Are RERA-registered projects safer for home loans? Yes. Banks prefer RERA-registered projects; some lenders refuse loans on unregistered projects above thresholds.
Next Steps
Before paying any booking advance: spend 2-3 hours on the 8-point checklist. The 2-3 hours can save Rs.10-50 lakh of trapped capital and 5-10 years of legal battles. RERA verification is the single highest ROI activity in property buying.
Related guides:
- First-Time Home Buyer Complete Guide
- Rent vs Buy Home in India
- How Much Home Loan Can I Afford
- All Real Estate guides
RERA regulations vary by state. Verify current rules on respective state RERA portal. Educational guide; not legal advice.
