In this blog, we’ll break down what RERA is, what it covers, and how it directly benefits you as a buyer or investor.
What is RERA?
RERA stands for the Real Estate (Regulation and Development) Act, 2016. It was introduced by the Indian government to regulate the real estate industry and ensure fair practices among builders and developers.
Each state has its own RERA authority and official portal where developers must register their projects.
Why Was RERA Needed?
Buying a home is one of the biggest financial decisions you’ll ever make — and often, it’s also one of the most confusing. That’s where RERA steps in. The Real Estate (Regulation and Development) Act, passed in 2016, was a game-changer for Indian homebuyers. It brought much-needed transparency, accountability, and buyer protection to the real estate sector.
- Before RERA, property buyers often faced:
- Project delays
- Lack of transparency in pricing, approvals, and timelines
- One-sided agreements
- No accountability for project delivery or quality
- RERA was enacted to level the playing field, offering more power and protection to buyers.
How RERA Protects You
Here’s how RERA safeguards your interests as a property buyer:
1. Mandatory Project Registration
Builders must register projects with the state RERA authority before advertising or selling. This means:
You can verify if the project is legal.
You get access to project details like layout, approvals, delivery timelines, and more.
2. Advance Payment Cap
Promoters can’t demand more than 10% of the property value as an advance before signing a sale agreement — reducing financial risk for buyers.
3. Timely Possession
RERA makes it mandatory for developers to deliver on time. If there’s a delay, buyers are entitled to compensation or a full refund with interest.
4. Clear Definition of Carpet Area
Developers can now only charge for carpet area (usable space), not super built-up or misleading terms.
5. Builder Accountability for 5 Years
If structural defects or poor workmanship arise within 5 years, the builder must fix them at no cost.
6. Grievance Redressal
Buyers can file complaints directly on the state RERA website, with timelines for resolution.
