The Real Estate (Regulation and Development) Act (RERA), implemented in 2016, has transformed the Indian real estate sector by bringing transparency, accountability, and buyer protection to the forefront. Whether you are purchasing a new apartment, a plot, or a commercial space, understanding RERA rules is essential to ensure your investment is safe and legally compliant.
1. What is RERA and Why Was It Introduced?
RERA was introduced to regulate the real estate market, protect buyers from fraud, and ensure timely delivery of projects. Before RERA, many homebuyers faced project delays, hidden costs, and misleading advertisements. The Act mandates that all real estate projects meeting certain criteria must be registered with the respective state’s RERA authority before they can be sold.
2. Key RERA Rules Every Buyer Should Know
a) Mandatory Project Registration
Developers must register their projects with RERA before advertising, selling, or booking any property. The registration number should be visible in all marketing materials.
b) Advance Payment Limit
Builders cannot take more than 10% of the property’s cost as an advance before signing a sale agreement.
c) Use of Funds
At least 70% of the money collected from buyers must be deposited in a separate bank account and used only for that project’s construction and land cost, preventing misuse of funds.
d) Timely Project Completion
Builders must deliver the project as per the timeline mentioned during registration. Delays can lead to penalties and compensation to buyers.
e) Full Disclosure of Project Details
RERA mandates that all details — including project layout, approvals, completion date, and amenities — must be available on the official RERA website for buyers to check before investing.
f) Defect Liability
If structural defects or quality issues arise within five years of possession, the builder must fix them at no extra cost.
3. How Buyers Can Check RERA Compliance
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Visit Your State’s RERA Website – Each state and union territory has its own RERA portal.
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Search by Project or Builder Name – Look for the RERA registration number.
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Verify Approvals and Timelines – Ensure all legal documents and permits are uploaded.
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Check Litigation History – Some RERA portals display complaints or legal cases against the developer.
4. Benefits of RERA for Homebuyers
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Transparency – All project details are available online.
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Timely Delivery – Legal provisions protect against indefinite delays.
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Financial Security – Your payments are used only for the project you buy into.
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Legal Protection – Buyers can file complaints directly with the RERA authority for quick resolution.
5. Common RERA Compliance Mistakes to Avoid
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Not verifying the project’s RERA registration before booking.
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Ignoring discrepancies between marketing promises and RERA-listed details.
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Paying large advances without a proper agreement.
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Not checking for updated timelines or legal disputes on the RERA portal.
6. Conclusion
RERA is a game-changer for India’s property market, ensuring buyers’ interests are safeguarded and developers maintain ethical practices. Before making any property purchase, take a few minutes to verify RERA compliance — it can save you from financial loss and legal trouble in the future.
