RERA Compliance & Home Loans

Last Updated: June 20, 2026

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation that aims to protect home buyers and promote transparency, accountability, and efficiency in the Indian real estate sector. At BankerMart, we are fully committed to RERA compliance. We only list projects that are registered with the respective state RERA authorities, ensuring that you invest with complete confidence.

This page provides a comprehensive overview of RERA, its benefits, how it impacts your home loan, and what BankerMart does to ensure you make informed, safe decisions.

1. What is RERA?

The Real Estate (Regulation and Development) Act, 2016, came into full force on May 1, 2017. It established the Real Estate Regulatory Authority (RERA) in each state and union territory to regulate and promote the real estate sector.

RERA mandates that:

• All real estate projects must be registered with the state RERA authority before any advertising, marketing, or selling.
• Developers must provide detailed project information including layout plans, approvals, and completion timelines.
• Developers can only use 70% of the funds collected from buyers for construction and land costs – the remaining 30% must be kept in a separate escrow account.
• Projects must be completed within the promised timeline; delays result in penalties and interest payments to the buyer.
• Buyers have a right to legal recourse against builders who violate the act.

2. Benefits of RERA for Home Buyers

RERA provides several critical safeguards for buyers:

• Transparency: Developers must disclose all approvals, layout plans, and financial details online. You can verify everything.
• Timely Possession: Delays invite penalties – builders must pay interest for every month of delay.
• Quality Assurance: Builders are liable for structural defects for up to 5 years from possession.
• Escrow Account: 70% of funds are protected and cannot be diverted to other projects.
• Grievance Redressal: You can file complaints with the RERA authority or the appellate tribunal if the builder defaults.
• No Unilateral Changes: Developers cannot alter the sanctioned plan without buyer consent.
• Standardized Contracts: The sale agreement must be in a prescribed format, preventing one-sided clauses.

3. How RERA Impacts Home Loans

For home loan borrowers, RERA brings several positive changes:

• Safe Lending: Banks and Housing Finance Companies now prefer to finance only RERA-registered projects, reducing the risk of default.
• Lower Interest Risk: Since projects are more likely to be completed on time, the risk of a stalled project affecting your EMI repayment capability is reduced.
• Greater Loan Sanction Confidence: Lenders are more willing to approve loans for RERA projects because they are legally compliant.
• Tax Benefits: Interest paid on home loans for under-construction properties is eligible for tax benefits even during the construction period (subject to Section 24).

4. BankerMart's Commitment to RERA Compliance

At BankerMart, we believe in empowering buyers with accurate information. Here's how we align with RERA:

• RERA-Verified Listings: We only showcase properties that have a valid RERA registration number.
• Transparent Project Details: We display key RERA information, including registration number, project status, possession date, and carpet area.
• Educational Content: Our blog and guides help you understand RERA, your rights, and how to verify projects.
• Partnership with RERA-Compliant Builders: We work only with builders who adhere to RERA norms and have a good track record.
• User Reporting: If you find a project we list that is not RERA-compliant, we will investigate and remove it immediately.

5. How to Verify RERA Registration

You can easily verify if a project is RERA-registered by following these steps:

1. Visit the official RERA website of your state (e.g., rera.mahaonline.gov.in for Maharashtra, rera.up.gov.in for Uttar Pradesh).
2. Look for the "Search Project" or "Project Registration" section.
3. Enter the project name or the RERA registration number (starts with a state code and a number).
4. Check the details – registration status, completion timeline, and any complaints filed.
5. If the project is not registered, do not invest.

Alternatively, you can use our RERA Verification Tool (available on our website) that fetches real-time data from state RERA portals.

6. RERA Registration Number Format

The RERA registration number typically follows this pattern:

• Maharashtra: P52000012345 (P for Promoter, followed by registration year and number)
• Uttar Pradesh: UPRERAP20260001 (State code + RERA + P + year + sequence)
• Haryana: HRERA200678 (State code + RERA + number)
• Karnataka: PRM/KA/RERA/2026/123456

Always check the official RERA website for the exact format in your state.

7. Penalties for Non-Compliance

RERA imposes severe penalties for violations:

• For Developers: Up to 10% of the project cost for non-registration, and imprisonment (up to 3 years) for repeated violations.
• For Agents: A fine of ₹10,000 per day for non-registration, and imprisonment for repeated default.
• For False Information: Penalties up to 5% of the project cost.
• For Delaying Possession: Builder must pay interest (SBI's MCLR + 2%) to the buyer for every month of delay.

8. Summary – Key RERA Features at a Glance

Feature	Benefit for Home Buyer
Registration Mandatory	All projects must be RERA-registered – no unapproved sales
Escrow Account	70% funds protected – builders cannot divert money
Timely Completion	Builder liable to pay interest for delays
Structural Defects	5-year liability on builders for defects
Grievance Redressal	File complaints easily with RERA authority
Transparency	All approvals, plans, and financials disclosed online
Standardized Agreements	Protects buyers from one-sided builder clauses

9. Frequently Asked Questions

1. What is RERA and why is it important?

RERA (Real Estate Regulation and Development Act) is a central law that regulates the real estate sector. It ensures transparency, accountability, and protection for home buyers against fraudulent builders and project delays.

2. How do I check if a project is RERA-registered?

Visit your state's RERA official website and search using the project name or RERA registration number. You can also use our RERA Verification Tool available on BankerMart.

3. Is RERA applicable to all real estate projects?

Yes, RERA applies to all residential and commercial real estate projects where the land area is more than 500 square metres or where there are more than 8 apartments (in case of residential). However, states may have their own thresholds.

4. Can I buy a home from a non-RERA project?

We strongly advise against it. Non-RERA projects are illegal and carry high risks of fraud, delays, and legal disputes. BankerMart only lists RERA-registered projects.

5. What is the penalty for a builder who delays possession?

The builder must pay interest at SBI's MCLR + 2% for every month of delay beyond the promised possession date. You can also file a complaint with RERA.

6. Does RERA cover structural defects?

Yes, the builder is liable for structural defects for up to 5 years from the date of possession. They must rectify the defects without any additional cost to the buyer.

7. How does RERA help home loan borrowers?

Banks prefer financing RERA projects, reducing the risk of project abandonment. It also ensures that the builder does not divert funds, protecting your investment.

8. Can I file a complaint against a builder under RERA?

Yes, you can file a complaint with the state RERA authority or the Real Estate Appellate Tribunal if the builder violates any provisions of the Act.

9. What is the maximum compensation I can get from RERA?

RERA can order compensation for losses suffered due to false information, delays, or defective construction. The amount depends on the case and the actual loss incurred.

10. Is RERA applicable to commercial properties?

Yes, RERA applies to commercial real estate projects as well, provided they meet the land area or apartment thresholds.

11. How does RERA ensure quality of construction?

Builders must adhere to the approved plans and specifications. RERA also mandates that builders provide a defect liability period of 5 years, ensuring they fix any structural defects.

12. Can I cancel a booking under RERA and get a refund?

Yes, if the builder delays possession beyond the agreed timeline, you can cancel the booking and the builder must refund the entire amount with interest.

13. What is the role of RERA in advertising?

RERA prohibits any advertisement or marketing of a project without a valid registration number. Builders must display the registration number in all advertisements.

14. Does RERA apply to projects that are already completed?

RERA applies to ongoing projects that have not received a completion certificate. However, completed projects are not required to register.

15. Where can I find the RERA registration number for a project?

The registration number is usually printed on the project brochure, website, or sales office. You can also find it on the state RERA portal.

16. What is the difference between RERA and local building bye-laws?

RERA is a central law that sets minimum standards for transparency and buyer protection. Local building bye-laws deal with construction regulations like setback, height, and density. Both are applicable.

17. Does RERA cover resale properties?

RERA primarily applies to first-time sales from builders. However, any project sold by a builder in the future must comply with RERA at the time of launch.

18. What should I do if a builder doesn't provide a RERA registration number?

Do not invest. Report the builder to the state RERA authority immediately.

19. Can I get a home loan for a RERA-registered project?

Yes, most banks and HFCs readily provide home loans for RERA-registered projects. Some may even offer faster approvals.

20. Is BankerMart a RERA-registered entity?

BankerMart is a financial comparison platform and does not itself develop or sell real estate. However, we strictly adhere to RERA norms by only featuring RERA-registered projects and providing accurate information to our users.