Himani Prajapati 0 Comments 37 Views

RERA in India: Empowering Homebuyers and Regulating Real Estate with Transparency

🎯 Objectives of RERA

• Protect the interests of homebuyers

• Increase transparency in project transactions

• Ensure timely delivery of projects

• Promote fair trade practices in the real estate sector

• Establish a fast-track dispute resolution mechanism

🏗️ Key Provisions and Benefits of RERA

1. Mandatory Project Registration

All real estate projects (meeting the required threshold) must be registered with the state RERA before launch. Builders cannot advertise, market, or sell without RERA registration.

Benefit to Buyers: You can verify the legitimacy of the project, builder’s background, approvals, and timeline on the state RERA portal.

2. Project Details Must Be Disclosed

Developers must provide detailed project information including layout plans, carpet area, completion status, and timeline. These details must be regularly updated on the RERA portal.

Benefit to Buyers: Buyers get access to verified information and updates on the construction progress.

3. Advance Payment Limit

Builders can’t take more than 10% of the property cost as an advance before signing a sale agreement.

Benefit to Buyers: Ensures the buyer is not pressured into large upfront payments without formal documentation.

4. Escrow Account Requirement

Developers must deposit 70% of the project funds collected from buyers into a separate escrow account. This money can only be used for the construction of that project.

Benefit to Buyers: Prevents misuse of funds and ensures that your money is used only for your booked home.

5. Carpet Area Definition

RERA introduced a standard definition of carpet area, which is the net usable floor area. Developers can no longer manipulate pricing using super built-up area.

Benefit to Buyers: You pay only for the actual usable space, eliminating confusion and inflated costs.

6. Timely Possession and Penalties

If the builder delays possession, they are required to pay interest to the buyer for every month of delay.

Benefit to Buyers: This ensures builders stick to timelines and provides financial relief in case of delays.

7. Five-Year Defect Liability

Builders are liable to fix any structural or quality-related defects found within 5 years of possession, free of cost.

Benefit to Buyers: Assures post-sale quality and accountability.

8. Fast-Track Grievance Redressal

RERA enables buyers to file complaints with the authority for speedy resolution of disputes between buyers and builders.

Benefit to Buyers: A dedicated legal system designed to protect consumer rights without long delays.

📈 Impact of RERA on the Real Estate Market

• Increased buyer confidence due to legal protection and transparency

• More organized developers with better planning and fund management

• Better project timelines and reduced project abandonment

• Reduction in fraudulent practices like overbooking, hidden charges, and fake promises

🧾 How to Check Project Details on RERA?

You can visit your state-specific RERA website, such as:

• MahaRERA (Maharashtra)

• GujRERA (Gujarat)

• UP RERA

• Delhi RERA

Search using the builder name, project name, or RERA registration number to verify all details.

🏡 Why RERA Matters to You

Whether you're a homebuyer, real estate investor, or even a builder, RERA has brought discipline to a once-unregulated sector. It empowers buyers with rights, enforces responsibility on developers, and fosters a more trustworthy property market.

Before buying any property, always ask:

“Is this project RERA registered?”

If not — walk away. Your money deserves legal protection, transparency, and timely delivery.

Need help verifying a project or builder under RERA? Let us know — we’ll guide you through it.