Understanding the Real Estate Regulatory Authority (RERA): A Game Changer for Homebuyers

In India’s booming real estate market, buying property has traditionally been a stressful and uncertain process. From project delays to false promises and lack of legal transparency, homebuyers often found themselves at a disadvantage. To address these longstanding issues and bring transparency, accountability, and trust into the real estate sector, the Government of India introduced the Real Estate Regulatory Authority – RERA under the Real Estate (Regulation and Development) Act, 2016.

This comprehensive guide breaks down how Real Estate Regulatory Authority – RERA has transformed the real estate landscape in India and why it is a game changer for homebuyers.

What is the Real Estate Regulatory Authority – RERA?

The Real Estate Regulatory Authority – RERA is a statutory body established under the Real Estate (Regulation and Development) Act, 2016. Its primary objective is to regulate the real estate sector and ensure transparency and fair practices among builders, agents, and buyers.

Each state and union territory in India has its own RERA authority responsible for enforcing the Act’s provisions within its jurisdiction.

Key Objectives of RERA

1. Promote Transparency: Ensure accurate project information is disclosed to buyers.
2. Protect Homebuyers: Prevent project delays, fraud, and unfair terms.
3. Ensure Accountability: Make developers and agents legally accountable for their commitments.
4. Establish Adjudication Mechanisms: Provide a fast-track dispute resolution system for homebuyers.

Key Provisions of RERA That Benefit Homebuyers

1. Mandatory Project Registration

All residential and commercial real estate projects (above a specific size) must be registered with the respective state RERA before advertising or selling units.

Impact: Buyers can verify whether a project is RERA-registered before investing.

2. Advance Payment Limit

A developer cannot accept more than 10% of the property’s cost as an advance without entering into a written agreement for sale.

Impact: Protects buyers from arbitrary advances without proper documentation.

3. Project Completion Timeline

Developers must provide a fixed possession date and are liable to pay interest or compensation if the project is delayed beyond that date.

Impact: Reduces the problem of delayed possessions and false delivery claims.

4. Escrow Account for Funds

Builders are required to deposit 70% of the money collected from buyers into a separate escrow account to ensure that funds are used only for the construction of that project.

Impact: Prevents misappropriation of funds and secures construction progress.

5. Clear Information on Project Details

Builders must upload details such as layout plans, government approvals, land titles, completion timelines, and construction status on the RERA website.

Impact: Empowers buyers to make informed decisions.

6. 5-Year Defect Liability Clause

Builders are responsible for fixing structural defects or poor workmanship in a property within 5 years of possession without charging the buyer.

Impact: Ensures post-possession accountability and better construction standards.

7. Regulation of Real Estate Agents

Real estate agents must also register with RERA and follow ethical practices.

Impact: Reduces the number of fraudulent or unqualified brokers.

8. Faster Dispute Redressal

RERA has established a three-tier dispute resolution mechanism:

• Real Estate Regulatory Authority
• Real Estate Appellate Tribunal (REAT)
• Civil courts (as the final option)

Impact: Ensures quicker resolutions compared to traditional legal systems.

How to Check if a Project is RERA-Registered

Each state RERA has an official website where homebuyers can search for:

• Registered projects
• Registered agents
• Project approvals, floor plans, and progress reports
• Developer compliance history

Some popular RERA portals include:

• MahaRERA (Maharashtra): https://maharera.mahaonline.gov.in
• UP RERA: https://www.up-rera.in
• Haryana RERA: https://haryanarera.gov.in

Impact of Real Estate Regulatory Authority – RERA on the Market

For Homebuyers:

• More trust and transparency
• Timely possession of homes
• Legal support in case of disputes
• Complete access to builder records

For Builders:

• Pressure to complete projects on time
• Obligation to provide true project details
• Legal accountability for delays and defaults

For Investors:

• Greater confidence due to project transparency
• Higher chances of timely returns
• Protection from fly-by-night developers

Challenges in Implementation

While RERA is a powerful reform, it still faces implementation issues:

• Some states have diluted rules favoring developers
• Enforcement varies between states
• Builders delay RERA registration or fail to update project details

However, with growing awareness among homebuyers and increased scrutiny from authorities, compliance is steadily improving.

Conclusion

The Real Estate Regulatory Authority – RERA has indeed changed the game for Indian homebuyers. By making project registration mandatory, regulating developer practices, and enabling legal accountability, it has brought transparency and confidence back to the real estate market.

As a homebuyer or investor, verifying a project’s RERA status should be your first step before investing. The protection and rights offered under this legislation ensure that your real estate journey is safer, fairer, and more predictable.

If you're planning to buy a new home or invest in property, make sure it’s RERA-registered—because when it comes to real estate, compliance is key.

FAQs

Q1: What is the purpose of the Real Estate Regulatory Authority – RERA? A: RERA aims to protect homebuyers, ensure fair practices, and promote transparency in the real estate sector.

Q2: Is RERA applicable across all states in India? A: Yes, every state and union territory is required to establish its own RERA authority and implement the Act.

Q3: Can I file a complaint with RERA if my builder delays possession? A: Absolutely. RERA provides a grievance redressal mechanism to address delays and other issues.

Q4: How can I check if a project is RERA-registered? A: Visit your state’s RERA website and search by project name, developer, or location.

Q5: What if a builder sells a unit in an unregistered project? A: It is illegal to advertise, market, or sell property in a non-RERA-registered project, and the builder can face penalties.

Q6: Does RERA apply to ongoing projects? A: Yes, all ongoing projects that haven’t received a completion certificate must be registered under RERA.

Q7: Are real estate agents also regulated under RERA? A: Yes, agents must register with RERA and follow ethical guidelines. Failure to do so invites penalties.