RERA Explained: What Every Mumbai Homebuyer Must Know Before Buying

The Real Estate (Regulation and Development) Act, 2016—commonly known as RERA—was a watershed moment for India's property market. It introduced mandatory accountability, financial discipline, and buyer protection into a sector that had long been fragmented and opaque. For homebuyers in Maharashtra, understanding MahaRERA—the state's implementation of RERA—is not optional. It is the foundation of every informed property decision.

What Is RERA and Why Was It Introduced?

Prior to RERA, Indian homebuyers faced rampant project delays, fund diversion by developers, misleading advertisements, and severely limited legal recourse. The Act was introduced to correct these systemic failures and rebalance the power dynamic between developers and buyers—placing accountability at the centre of every transaction.

• Mandatory registration of all residential projects with carpet area above 500 sq. m. or more than 8 units
• Developers must deposit 70% of buyer funds in a designated escrow account restricted to project construction
• Advertising or selling units before RERA registration is strictly prohibited
• Quarterly project updates must be published on the RERA portal for buyer review
• Buyers receive compensation for delays at the same interest rate as developer late payment penalties

How to Verify a Project on MahaRERA

Verifying a project on MahaRERA takes minutes and provides critical information that no marketing brochure can match. Visit the official MahaRERA portal and search for the project by name or its registration number to access comprehensive project data.

• Confirm the project's registration number and verify it matches what the developer has provided
• Review the approved layout plan and total sanctioned number of units
• Check the declared completion date and track any approved extensions
• Review quarterly progress updates for construction milestone adherence
• Verify the developer's track record of past completed projects listed on the portal

Key Buyer Rights Under RERA

• Right to receive accurate, complete information about the project including layout, amenities, and timeline
• Right to a stage-wise refund with interest if the developer fails to complete the project
• Carpet area must be the basis of all unit measurements — super built-up area cannot be used for pricing
• Right to compensation for any structural defects discovered within 5 years of possession
• Right to form a Residents' Welfare Association (RWA) after occupancy is established

What RERA Does Not Cover

While RERA significantly strengthens buyer protection, understanding its limitations helps you structure additional due diligence appropriately.

• Projects below 500 sq. m. or 8 units may be exempt from mandatory registration
• Commercial properties have different treatment than residential under RERA
• Resale properties transacted between individual parties are generally not subject to RERA
• Ongoing disputes from pre-RERA projects may fall under different legal jurisdiction

Filing a Complaint Under MahaRERA

If a developer fails to deliver on their registered commitments, buyers can file a complaint directly through the MahaRERA portal. The process is designed to be accessible without mandatory legal representation, and hearings can often be attended online.

• Complaints can be filed online through the official MahaRERA portal
• Filing fee for residential complainants is ₹5,000
• Adjudicating Officers provide binding orders on monetary compensation disputes
• Most complaints reach a hearing within 60 days of submission