Andhra Pradesh RERA
Insights into the AP State Real Estate Regulatory Authority
Overview of AP RERA
The Real Estate (Regulation and Development) Act, 2016 was enacted by the Parliament of India, and subsequently, the Government of Andhra Pradesh notified the rules for the state to establish the Andhra Pradesh Real Estate Regulatory Authority (AP RERA).
AP RERA aims to promote the real estate sector in Andhra Pradesh in a highly efficient and transparent manner. Its core mandate is to protect the interests of consumers by establishing an adjudicating mechanism for speedy dispute redressal and enforcing strict compliance standards upon real estate developers, promoters, and agents.
Under the AP RERA guidelines, the mandatory registration of all qualifying projects and real estate agents is the cornerstone of the authority. No promoter can advertise, market, book, sell or offer for sale any plot, apartment, or building without first registering the project with AP RERA.
Key Functions
- Registering Projects & Agents
- Protecting Consumer Interests
- Ensuring Timely Project Delivery
- Regulating the Real Estate Sector
- Fast-track Dispute Resolution
Core Guidelines & Mandates
The Andhra Pradesh state rules specifically dictate severe penalties for non-compliance. Here are the core pillars of AP RERA.
70% Escrow Account
Promoters are required to deposit 70% of the amounts realized from the allottees into a separate escrow bank account to exclusively cover the cost of construction and the land cost.
Defect Liability
Any structural defect or defect in workmanship must be rectified by the promoter without any further charge, provided it is brought to notice within 5 years from the date of possession.
Strict Registration
Projects exceeding 500 square meters or more than 8 apartments must be registered. Failure to register can attract a penalty up to 10% of the estimated project cost.
Need AP RERA Compliance Support?
Our network of professionals in Andhra Pradesh provides dedicated on-ground RERA compliance support tailored to AP RERA guidelines. We handle end-to-end registration, quarterly updates, and legal advisory.