The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced by the Indian government to bring transparency, accountability, and discipline to the real estate sector. Before RERA, property buyers often fell prey to delays, hidden costs, and poor construction quality. This act has been a game-changer, especially for first-time buyers and real estate investors.

What is RERA?

RERA is a regulatory framework applicable to residential and commercial real estate projects across India. Its main objective is to protect homebuyers and bring order to an otherwise fragmented industry. Every state has its own RERA authority to monitor real estate activities.

Key Provisions of RERA

  1. Mandatory Registration:
    Builders must register their project with the respective state’s RERA before advertising, selling, or booking units. Projects above 500 sq. m or with more than eight apartments must be registered.

  2. Advance Payment Cap:
    Developers can’t demand more than 10% of the property’s cost as an advance before signing a sale agreement.

  3. Escrow Account Requirement:
    Builders must deposit 70% of the project funds into an escrow account to ensure the money is used only for construction and land costs.

  4. Defined Project Timelines:
    Builders must adhere to the delivery timelines mentioned in the agreement. Any delay can result in penalties or compensation to the buyer.

  5. Full Project Disclosure:
    Developers must upload project details including layout, approvals, contractors, and progress updates on the RERA website, accessible to the public.

  6. 5-Year Liability for Structural Defects:
    If structural defects arise within five years of possession, the builder is obligated to fix them without any additional cost.

  7. Right to Information:
    Buyers have the right to all project-related information, including layout, completion stages, and legal clearances.

  8. Quick Redressal Mechanism:
    RERA authorities are expected to resolve disputes within 60 days of a complaint being filed.

Benefits for Homebuyers

  • Transparency: Buyers know exactly what they are investing in, with all project details available on the RERA portal.

  • Accountability: Builders are held legally accountable for timely delivery and promised quality.

  • Protection Against Fraud: Escrow mandates and disclosure norms prevent fund misuse and false advertising.

  • Legal Recourse: Buyers can approach RERA for resolution without needing to go through civil court, which is time-consuming.

How to Check RERA Status

You can visit your state’s RERA website and search the project by name, location, or developer. This helps ensure that the project is genuine and legally approved.

Popular RERA Websites:

What Homebuyers Should Do

  • Always check for RERA registration before booking.

  • Read the agreement thoroughly and check for penalties in case of delay.

  • Track project updates through the official portal.

  • Maintain records of all payments and correspondence.

Conclusion

RERA has empowered Indian homebuyers with rights and tools that were previously unavailable. It has brought structure to an industry that was notorious for being chaotic. If you are planning to buy property in India, RERA is your best safeguard against misrepresentation, delays, and poor quality. Always choose a RERA-registered project and stay informed — because a well-informed buyer is a protected buyer.