Updated RERA guidelines on project registration, escrow requirements, and dispute resolution — what buyers and developers must know.
Updated RERA Registration Requirements
The Real Estate (Regulation and Development) Act has seen significant regulatory evolution through state-level amendments and MoHUA guidelines issued in 2025. Key updates include mandatory digital registration of all projects above 500 square metres or 8 apartments, real-time project update requirements through state RERA portals, and enhanced disclosure of encumbrances on project land. Developers who fail to update construction progress milestones quarterly now face automatic portal flagging, enabling buyers to identify projects at risk of delay before making purchase decisions.
The 2025 MoHUA model code revision strengthens the requirement that 70% of buyer advances must be deposited in a dedicated escrow account (RERA account) that can only be drawn for land and construction costs of the specific project. Several states have moved to a "force majeure certificate" system where developers seeking to draw funds from the RERA account for reasons other than construction costs must obtain prior regulatory approval, reducing the diversion of funds that was a common cause of project stalls in the pre-RERA era.
Buyer Rights and Dispute Resolution
RERA vests buyers with a comprehensive set of rights that were previously unavailable under general consumer protection law. Buyers are entitled to receive the exact specifications of the apartment as registered (any deviation is a breach), to receive possession by the agreed date or be refunded with interest, and to access project accounts maintained by the developer. The 2025 amendments add a new right to inspect the RERA account bank statements upon request, giving buyers a practical tool to verify that their advances are being used for construction.
The RERA adjudicating authority process has been streamlined, with a mandatory online filing system and a 90-day target for resolution of compensation claims. Buyers who are awarded compensation but face non-payment can now apply for attachment of the developer's other assets, not just the project's RERA account. This enforcement enhancement significantly changes the risk calculus for developers who previously treated buyer compensation orders as low-priority obligations. Buyers with pending disputes should revisit their legal strategy in light of these new enforcement tools.
Compliance Strategy for Developers
Developers operating across multiple states face the additional complexity of state-specific RERA regulations that vary substantially in their interpretation of central Act provisions. A compliance matrix covering registration thresholds, disclosure formats, timeline extensions, and penalty schedules for each state of operation is essential for multi-state developers. The legal team should also maintain a running tracker of RERA tribunal judgments in each state, as these interpretations can significantly affect project-level liability exposure.
For new project launches, developers should engage RERA consultants during project planning — ideally before the land acquisition transaction is structured — to ensure that the project can be registered cleanly without post-registration amendments that attract regulatory scrutiny. Issues such as clear title, authority approvals for the proposed land use, and encumbrance clearances must be resolved before registration, as post-registration title defects can trigger buyer termination rights and significant compensation liability.
