Purchasing a property is a large financial decision. However, for years, homebuyers in India have faced issues such as project delays, hidden charges, misleading advertisements, and more. To address these issues, the government of India had introduced the Real Estate (Regulation and Development) Act, 2016. It is popularly known as RERA.
The query, ‘what is RERA,’ is common as buyers may need to understand its working to make an informed decision. This blog walks you through the Act, highlights its significance, and acquaints you with your property-associated rights.
What Is RERA in Real Estate?
The Real Estate (Regulation and Development) Act, 2016, is a landmark legislation that helps regulate India’s real estate sector. The act came into force in 2017 on May 1 and established state-level real estate regulatory authorities to oversee various property projects.
The main objective of real estate regulation under RERA is to bring accountability, transparency, and efficiency to property transactions. Developers may need to register properties that are eligible before marketing, advertising, or selling them. They must also provide project timelines, get approvals, and provide layouts on the respective state RERA portals.
Today, RERA-approved projects have become an important choice among buyers as they offer essential legal protection and project transparency.
Why Was the RERA Act Introduced in India?
Before RERA, the Indian real estate sector largely functioned without a standard regulatory framework. Buyers used to encounter:
- Misleading advertisements
- Long project delays
- Diversion of buyer funds to other projects
- Unfair builder-buyer agreements
- Changes in the plans of projects without consent
- Limited avenues for dispute resolution
To take care of these issues, the government introduced the RERA rules in India. It offers uniformity and safeguards consumer interests. It helps promote ethical business practices, improves transparency, and enhances confidence in the real estate market.
How Does RERA Protect Home Buyers?
A big reason why RERA is important for home buyers is the holistic protection it provides throughout the journey of property-buying:
- Mandatory Project Registration
All qualifying projects must be registered with the relevant state RERA authority before they start promotion or sale. This helps prevent the launch of unauthorised and misleading projects. - Greater Builder Transparency
RERA mandates developers to offer information about layout plans, project approvals, completion timelines, construction schedules, project status updates, and legal clearances. Enhanced builder transparency allows buyers to independently verify information. - Protection Against Delayed Possession
A large concern for homebuyers has been delayed possession. RERA ensures that if the developer does not deliver the property within the given timeline, buyers must seek interest, compensation, or a refund under certain circumstances. - Standardised Carpet Area Calculation
RERA introduced a uniform definition of carpet area, which helps reduce confusion and prevents misleading sales on the basis of inflated super built-up areas. - Faster Dispute Resolution
The act offers a dedicated grievance redressal mechanism, which helps buyers file complaints and seek quick resolutions compared to traditional civil litigation.
Together, these provisions help strengthen buyer protection and improve trust in the real estate market.
How to Check If a Project Is RERA Registered?
Conducting a RERA registration check is one of the first steps of property investment. If you want to understand how to check RERA-registered projects, follow these steps:
- Visit the RERA website of your state.
- Navigate to the project search section.
- Enter the name of the project and developer, or the registration number.
- Review the project details provided on the portal.
- Verify approvals, completion timelines, legal documents, and construction updates.
If there is a valid registration number, you can get confirmation that the project is registered under the state’s RERA authority. This helps avoid projects marketed merely as ‘RERA applied’ without an approved registration number.
What Are the Benefits of Buying RERA-Approved Property?
The following are some benefits of RERA, which typically extend beyond legal compliance.
- Better Transparency
Buyers can acquire verified project information, which can reduce the risk of misinformation. - Financial Security
The escrow account requirement can help ensure that funds are used appropriately and only for construction activities. - Timely Project Delivery
In case of delays, the developers can face penalties and compensation obligations, which can help encourage adherence to project schedules. - Better Quality Assurance
If there are any structural defects or construction-associated issues that the buyer reports within the prescribed period of possession, developers may be held responsible for rectifying them. - Legal Safeguards
Instead of seeking redressal through long court proceedings, buyers can turn to RERA authorities, as they offer dedicated support.
All these advantages combined make RERA-approved projects quite safe for prospective homebuyers.
What Happens If Builders Violate RERA Rules?
If a developer fails to follow the RERA rules in India, they may face legal penalties and regulatory action. Some common violations are:
- Sale of unregistered projects
- Delay of possession without justification
- Offering false information
- Misuse of project-related funds
- Making project modifications without authorisation
- Inability to update mandatory disclosures
Based on the nature of the violation, authorities may impose penalties, order refunds alongside interest, initiate legal proceedings, or suspend project registrations. These enforcement measures help safeguard buyers and their confidence in the real estate sector.
How to File a Complaint Under RERA?
The RERA complaint process in India offers a structured system for solving disputes. Homebuyers can usually file complaints for various reasons, such as construction defects, unauthorised changes, violation of buyer agreements, and so on. To file a complaint for such issues, homebuyers can take the following steps:
- Visit your state’s official RERA portal.
- Register as a complainant.
- Fill the complaint form, offering details about the project and the builder.
- Upload documents such as correspondence, agreements, receipts, and payment records.
- Pay the necessary complaint fee.
- Submit the application and track updates online.
After a case is reviewed, the authority may hold hearings and issue penalties or directions wherever necessary.
Which Properties Must Be Registered Under RERA?
Not all properties fall under RERA’s scope. Registration is typically mandatory for:
- Projects that take up more than 500 square metres of land
- Projects with more than eight flats
- Ongoing projects without a completion certificate before the act became applicable
It is important to note that registration requirements may differ from one state to another, but these are broad eligibility criteria, followed across India.
Conclusion
For anyone wanting to purchase a property, understanding the RERA Act is important. It has brought about considerable transformation in the real estate sector through improved buyer protection, accountability, and transparency. Buyers may therefore have significantly more safeguards than ever before.
Before purchasing a property, checking if the property is RERA approved can help reduce risks, protect the buyer’s investment, and ensure a secure home-buying experience.
FAQs About RERA in India
Is RERA registration mandatory?
Yes. Eligible residential and commercial projects often need RERA registration before they are advertised, marketed, or sold.
Can buyers file a complaint against builders?
Yes. Buyers can file complaints against developers for problems like project delays, false commitments, poor construction quality, and other violations.
How to verify the RERA number online?
Visit the relevant state RERA portal and use the project search feature to verify the registration number, project details, and developer information.
Does RERA apply to old projects?
Generally, projects that received completion certificates before RERA came into effect are not covered. However, many ongoing projects were required to register under the Act.
What is the carpet area under RERA?
Under RERA, carpet area refers to the net usable floor area of an apartment, excluding areas covered by external walls, service shafts, balconies, verandas, and open terraces.
Are all builders required to register under RERA?
Builders developing projects that go beyond 500 square metres of land and eight flats must register with the relevant state RERA authority before starting property sales.
