The Real Estate (Regulation and Development) Act, 2016 (2016)
The Real Estate (Regulation and Development) Act, 2016, Act No. 16 of 2016, was enacted by Parliament on 25 March 2016 to regulate and promote the real estate sector, protect consumers and establish authorities for complaints and appeals. It governs project and agent registration, promoter duties, allottee rights, enforcement and dispute resolution. The supplied text is current as on 15 May 2026 and records amendment by the Jan Viswas (Amendment of Provision) Act, 2026, Act 8 of 2026.
What the law governs
The Real Estate (Regulation and Development) Act, 2016 applies to the sale of plots, apartments, buildings and real estate projects. It creates a regulatory system intended to make real estate sales efficient and transparent, protect consumers and provide faster dispute resolution.
The Real Estate (Regulation and Development) Act, 2016 extends across India. For matters relating to a State such as Tamil Nadu, the appropriate Government is the State Government.
Different provisions commenced on different dates. Provisions concerning the regulatory institutions and related matters commenced on 1 May 2016. Provisions concerning project registration, promoters, allottees, enforcement and specified offences commenced on 1 May 2017. The supplied version is current as on 15 May 2026 and records amendment by the Jan Viswas (Amendment of Provision) Act, 2026.
Who is affected
The Real Estate (Regulation and Development) Act, 2016 is relevant to:
- Promoters developing or selling real estate projects.
- Real estate agents involved in project sales.
- Allottees who receive or purchase a plot, apartment or building from a promoter, including later purchasers by transfer.
- Buyers relying on advertisements, prospectuses, sanctioned plans or project specifications.
- Companies, development authorities and public authorities acting within the statutory definition of a company.
A tenant is not treated as an allottee merely because a plot, apartment or building is given on rent.
Main provisions
The Real Estate (Regulation and Development) Act, 2016 provides for:
- Prior registration of real estate projects with the Real Estate Regulatory Authority.
- Registration and defined functions of real estate agents.
- Promoter duties concerning advertisements, agreements for sale, sanctioned plans, project specifications, insurance, title transfer, refunds and compensation.
- Rights and duties of allottees.
- Establishment, composition and powers of the Real Estate Regulatory Authority.
- Complaints before the Authority or an adjudicating officer.
- Investigation, interim orders, directions, rectification and enforcement of orders.
- A Real Estate Appellate Tribunal to hear appeals from decisions, directions or orders of the Authority and adjudicating officer.
- Further appeals to the High Court.
- Penalties and adjudication for nonregistration, contraventions and failure to comply with orders.
Important property terms
The Real Estate (Regulation and Development) Act, 2016 defines carpet area as the net usable floor area, excluding external walls, service shafts, exclusive balconies, verandahs and open terraces, but including internal partition walls. Common areas include project land, stairs, lifts, common entrances, basements, parks, open parking, shared services and other portions needed for maintenance, safety or common use.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this law apply to a flat buyer in Tamil Nadu?
Yes. The Real Estate (Regulation and Development) Act, 2016 extends across India, and for State matters the appropriate Government is the State Government. A person allotted or sold a flat by a promoter is an allottee under the Act.
Is a tenant treated as an allottee?
No. The definition of allottee excludes a person to whom a plot, apartment or building is given on rent.
Can a buyer complain to the real estate regulator?
The Real Estate (Regulation and Development) Act, 2016 provides for complaints to the Real Estate Regulatory Authority or the adjudicating officer. It also establishes an Appellate Tribunal for appeals.
Does carpet area include balconies and internal walls?
Carpet area excludes exclusive balcony or verandah areas and exclusive open terrace areas. It includes the area covered by the apartment's internal partition walls.
