RERA and HRERA Explained: Rules, Buyer Rights and Project Verification

What Is RERA?

RERA is the central legislation governing the registration and regulation of eligible real estate projects in India.

Its purpose is to create a more transparent relationship between promoters, property buyers and real estate agents. It requires promoters to disclose important project information, follow registered timelines, maintain financial discipline and comply with approved plans.

RERA applies to both residential and commercial real estate projects that fall within the registration requirements. The Act also regulates real estate agents involved in facilitating transactions in registered projects.

What Is HRERA?

HRERA is the authority responsible for implementing the RERA Act in Haryana.

Haryana has established two separate regulatory authorities:

• HRERA Gurugram, responsible for projects in Gurugram district
• HRERA Panchkula, responsible for the remaining districts of Haryana

This distinction is important because a Gurgaon property buyer should primarily check the project through the HRERA Gurugram system and related project records.

In simple terms:

RERA is the central law, while HRERA is the state-level authority responsible for implementing that law in Haryana.

Which Real Estate Projects Require RERA Registration?

A promoter cannot advertise, market, book or sell an eligible real estate project before obtaining registration from the relevant RERA authority.

Projects generally require registration where the proposed development exceeds 500 square metres or involves more than eight apartments, subject to the exemptions and rules applicable to the transaction. Projects that obtained a completion certificate before the commencement of the Act and certain renovation or redevelopment projects without fresh marketing or allotment may be exempt.

Every phase must be checked separately

Large Gurgaon developments are frequently launched in multiple phases. Under RERA, every separately developed phase is treated as an independent real estate project and must obtain a separate registration.

Therefore, buyers should not verify only the township or brand name. They should check:

• Exact phase name
• RERA registration number
• Towers included in that phase
• Registered promoter
• Declared completion date
• Registration validity

A RERA number belonging to Phase 1 should not be relied upon for a unit being sold in Phase 2.

Important RERA Rules Every Buyer Should Know

1. The 70% separate project account rule

A promoter is required to deposit 70% of the amounts realised from allottees into a separate project account maintained with a scheduled bank. The money is intended to cover land and construction costs for that project.

Withdrawals should be proportionate to the project’s percentage of completion and supported by certification from an engineer, architect and practising chartered accountant. The project accounts must also undergo the prescribed annual audit.

This rule is designed to reduce the risk of money collected for one project being diverted without adequate control.

However, buyers should not assume that the rule removes all financial risk. Construction progress, promoter disclosures and regulatory filings should still be reviewed.

2. Sale based on carpet area

RERA defines carpet area as the net usable floor area of an apartment. It excludes external walls, service shafts, exclusive balconies, verandahs and open terraces, while including internal partition walls.

This is different from super built-up area, which may include a proportionate share of common areas.

Buyers should therefore check:

• Declared carpet area
• Balcony or terrace area
• Price per square foot calculation
• Total sale consideration
• Whether charges are being calculated transparently

HRERA Gurugram also provides specific regulations relating to the sale of apartments and floors on the basis of carpet area.

3. Maximum advance before the agreement for sale

A promoter cannot accept more than 10% of the cost of the apartment, plot or building as an advance or application fee without first entering into the prescribed written and registered agreement for sale.

Before paying a major amount, buyers should review the agreement carefully, particularly:

• Unit and tower details
• Carpet area
• Payment schedule
• Possession date
• Delay provisions
• Cancellation terms
• Specifications and amenities
• Transfer charges
• Maintenance obligations

The agreement is more important than a brochure, price list or verbal assurance.

4. Advertising must match official disclosures

The promoter’s advertisement or prospectus should prominently mention the authority’s website and the project’s registration number. Promoters are also responsible for losses caused by incorrect or false statements made in advertisements or project prospectuses.

Buyers should compare marketing claims with:

• HRERA registration records
• Approved layout plans
• Agreement terms
• Registered completion date
• Official specifications

Statements such as “Metro-facing,” “fully approved,” “guaranteed return” or “possession soon” should not be accepted without supporting documents.

5. Changes to approved plans

A promoter must develop the project in accordance with sanctioned plans, layouts and specifications.

Major changes to building plans or common areas generally cannot be made freely. The Act provides consent requirements for specified alterations, including written consent from at least two-thirds of the allottees for certain changes to sanctioned plans or common areas.

This makes it important to compare the brochure with the approved layout, particularly when a buyer is paying extra for:

• Park-facing location
• Open view
• Club-facing apartment
• Lower-density tower
• Corner unit
• Particular entry or access

6. Five-year defect liability

If a structural defect, workmanship or quality issue, service deficiency or certain agreement-related defect is reported within five years from the date of possession, the promoter is required to rectify it without further charge within 30 days.

If the promoter fails to do so, the allottee may become entitled to appropriate compensation under the Act.

Buyers should notify the promoter in writing and preserve photographs, inspection reports and communication relating to the defect.

Major Rights of Property Buyers Under RERA

Right to project information

An allottee has the right to obtain important information about the project, including sanctioned plans, specifications, development stages and the timeline for completion.

The promoter must also provide quarterly updates relating to bookings, approvals and project progress. HRERA Gurugram maintains regulations and online facilities relating to quarterly progress reporting and project records.

Right to timely possession

If a promoter fails to complete the project or provide possession according to the agreement, the buyer generally has two options.

A buyer who wishes to withdraw may seek return of the amount paid, together with applicable interest and compensation. A buyer who remains in the project may claim interest for every month of delay until possession is handed over.

The exact remedy will depend on the agreement, applicable rules and facts of the case.

Right to file a complaint

An aggrieved person may file a complaint with the regulatory authority or adjudicating officer for a violation of the Act, rules or regulations by a promoter, allottee or real estate agent.

HRERA’s online system provides complaint registration, complaint-status searches, cause lists and regulatory information.

Role of RERA-Registered Real Estate Agents

RERA compliance does not apply only to developers. A real estate agent facilitating the sale or purchase of property in an eligible registered project must obtain registration under the Act.

A registered agent must quote the registration number in facilitated transactions, avoid promoting unregistered projects and refrain from false or misleading representations.

Buyers should verify an agent’s registration rather than relying only on a visiting card, social-media profile or verbal claim. HRERA provides a publicly accessible registered-agents section.

How to Verify a Gurgaon Project on HRERA

The HRERA project-search facility allows users to search records using the project, promoter and location details. Search results can display the registration number, promoter name, project address and registration certificate.

Use the following process:

Step 1: Search the exact project

Search through the official HRERA system using:

• Project name
• Promoter or builder name
• RERA number
• Gurugram district

Step 2: Match the project phase

Confirm that the phase and tower being offered are included in the registration. Do not rely on a registration number belonging to another component of the same township.

Step 3: Check registration validity

Review the original registration period, declared completion date and any official extension.

An expired registration does not automatically prove wrongdoing, but it requires clarification about project completion, extensions or regulatory proceedings.

Step 4: Review available documents

Depending on what has been uploaded, review:

• Registration certificate
• Promoter details
• Licence and approvals
• Layout plans
• Land-title declaration
• Encumbrance disclosure
• Draft agreement for sale
• Completion schedule

Step 5: Examine construction updates

For an under-construction property, check whether quarterly progress reports are being filed regularly and whether tower-level progress appears consistent with the payment demands and sales claims.

Step 6: Check complaints and regulatory history

Do not judge a promoter only by the number of complaints. Examine whether there is a repeated pattern involving:

• Delayed possession
• Refund disputes
• Layout changes
• Incorrect demands
• Non-delivery of amenities
• Failure to comply with orders

A complaint is an allegation; it should be distinguished from a final judgment or order.

What RERA Registration Does Not Guarantee

A valid RERA registration does not automatically guarantee:

• Timely delivery
• Superior construction quality
• Fair pricing
• Rental returns on rental properties 
• Capital appreciation
• Clear title in every resale transaction
• Suitability for a particular buyer

RERA verification should be combined with checks relating to the promoter’s record, land title, DTCP licence, approved plans, construction progress, occupancy certificate and unit-level documents.

For a resale transaction, the buyer must also verify the seller’s ownership, payment history, outstanding dues, loan status and transfer permissions.

Final Advice

RERA and HRERA have made project information more accessible and have given buyers important statutory rights. But regulatory registration should not be treated as a substitute for complete due diligence.

Before buying a property in Gurgaon, verify the exact project phase, promoter name, registration validity, completion date, construction progress and agreement terms.

A professional real estate consultant can help organise and interpret this information, but final title documents and contractual terms should be examined by an independent property lawyer.

A safe property decision is not based only on a popular builder name or an attractive launch offer. It is based on verified information, transparent documentation and a clear understanding of the buyer’s rights.

Disclaimer: This article is intended for general information and does not constitute legal, tax or investment advice. Regulations and project records may change. Buyers should check current information from official authorities and obtain transaction-specific professional advice.