{"id":1137,"date":"2026-05-09T15:27:31","date_gmt":"2026-05-09T09:57:31","guid":{"rendered":"https:\/\/expressbuildersltd.com\/blog\/?p=1137"},"modified":"2026-05-09T15:28:13","modified_gmt":"2026-05-09T09:58:13","slug":"rera-builder-obligations","status":"publish","type":"post","link":"https:\/\/expressbuildersltd.com\/blog\/rera-builder-obligations\/","title":{"rendered":"RERA Builder Obligations: Rules, Responsibilities & Buyer Protection"},"content":{"rendered":"

The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, transformed India’s real estate sector. It brought accountability, transparency, and fairness to the market. Homebuyers had long suffered delays, broken promises, and financial losses. RERA changed that by placing clear obligations on builders. Understanding RERA builder obligations helps buyers make informed decisions and protects their hard-earned investments.<\/span><\/p>\n

What Is RERA and Why Does It Matter?<\/h2>\n

RERA is a central legislation that regulates India’s real estate industry. The government enacted it to protect homebuyers from fraudulent practices. It covers residential and commercial real estate projects. Every state maintains its own RERA authority to enforce the rules.<\/p>\n

Before RERA, builders operated with minimal accountability. Buyers had little legal recourse when projects got delayed or rules were broken. RERA fixed this gap by mandating project registration, financial discipline, and legal compliance from all builders.<\/p>\n

Core RERA Builder Obligations Before Project Launch<\/h2>\n

Builders must fulfil several obligations before they can launch or market a project. These rules prevent fraud and ensure project viability.<\/p>\n

1. Mandatory Project Registration<\/h3>\n

Every builder must register the project with the state RERA authority. Projects covering more than 500 square metres or eight apartments require registration. The builder cannot advertise, book, or sell units before obtaining RERA registration. This rule protects buyers from pre-launch fraud.<\/p>\n

2. Full Disclosure of Project Details<\/h3>\n

Builders must upload complete project details on the RERA portal. This includes approved layout plans, land ownership documents, and completion timelines. Buyers can verify all project information before making payments. Transparency is a cornerstone of RERA’s buyer protection framework.<\/p>\n

3. Escrow Account Obligation (The 70:30 Rule)<\/h3>\n

This is one of the most significant RERA builder obligations. Builders must deposit 70% of all buyer payments into a dedicated escrow account. They can use only those funds for land and construction costs of that specific project. The remaining 30% covers other project-related expenses.<\/p>\n

This rule stops builders from diverting buyer funds to unrelated projects. It ensures money collected goes directly into the project’s development.<\/p>\n

Read More:\u00a0<\/strong>What is RERA Approved Project<\/a><\/p>\n

Key Responsibilities During Project Execution<\/h2>\n

RERA does not stop at project registration. Builders carry significant responsibilities throughout the construction phase.<\/span><\/p>\n