Property
Property Law: RERA and Its Impact on Real Estate Transactions
By FairLex Editorial | February 15, 2026 · 1 min read
The Real Estate (Regulation and Development) Act, 2016 (RERA) has fundamentally changed the landscape of property transactions in India, providing greater transparency and protection to homebuyers.
Key Features of RERA
- Mandatory Registration: All commercial and residential projects above a certain size must be registered with the state RERA authority
- Escrow Account: 70% of project funds must be deposited in a separate escrow account
- Carpet Area Definition: Standardized definition of carpet area to prevent misleading claims
- Penalty for Delays: Developers must pay interest for delays in possession
Impact on the Market
RERA has brought significant changes including increased buyer confidence, reduced fraudulent practices, and improved project delivery timelines. The number of registered projects has grown steadily across states.
Challenges
Implementation remains uneven across states, with some RERA authorities being more effective than others. The appellate mechanism also needs strengthening for speedier dispute resolution.