RERA Compliance in Software: Disclosure Tracking and Escrow Integration
The Real Estate (Regulation and Development) Act fundamentally reshaped Indian real estate. Software for builders, brokers, and platforms needs to support RERA workflows. Here's what that means technically.
Key takeaways
- Every project sold must be RERA-registered; software displays the registration number and links.
- Builders must keep 70% of project funds in escrow until milestone-based withdrawal.
- All disclosures (project timelines, approvals, builder track record) must be transparent.
- Disclosure tracking, escrow integration, and approval workflows are the technical concerns.
What RERA requires (developer view)
Registration
Every project must register with the state RERA authority. Software supporting sales must display the RERA number prominently and ideally link to the authority page.
Escrow
70% of customer payments held in escrow account. Withdrawals only against milestone completion certified by engineer + architect + CA.
Software for builders must track escrow status; software for buyers must show escrow as part of trust signals.
Disclosures
Project timelines, approvals, builder past record, carpet area (not super built-up), pricing, amenities, all must be transparent and accurate.
Complaint mechanism
Aggrieved customers can file complaints; resolution timelines defined.
Technical implications
Project state machine
PROJECT_CREATED → RERA_REGISTERED → APPROVALS_OBTAINED → CONSTRUCTION_STARTED → MILESTONES (multiple) → POSSESSION → COMPLETED.
Each state has documents and dates. Audit trail.
Disclosure documents
PDF storage. Versioning. Public download links for buyers.
Escrow tracking
Per project: total received, in escrow, withdrawn (with milestone references). Integration with bank API where supported.
Milestone certification workflow
Engineer signs off → architect signs off → CA verifies → withdrawal allowed.
Buyer documents
Allotment letter, agreement, payment receipts. All time-stamped. Accessible to buyer.
Complaint workflow
Customer files complaint → routing → resolution → audit log.
Carpet area (not super built-up)
RERA mandates carpet area (actual usable area) be disclosed, not super built-up. Listing software must reflect this, many platforms still default to super built-up.
Common pitfalls
Treating RERA as legal-only. It's operational; software supports it.
No audit trail. Authorities can inspect.
Display issues. Failure to display RERA number prominently is a violation.
Wrong area metric. Super built-up by default fails RERA.
What we recommend
Build RERA workflows as first-class. Display compliance signals. Audit trail. Integrate escrow where bank APIs allow.
FAQs
State-by-state differences? Yes, each state's RERA has variations.
Resale properties? Generally exempt; new constructions covered.
Penalty for non-compliance? Fines, project freezes.