Understanding RERA and How It Protects Home Buyers

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency, accountability, and efficiency to India’s real estate sector. It protects home buyers from fraud, delays, and unfair practices while ensuring timely project completion by builders.

  1. What is RERA?

✔ RERA is a central law implemented across Indian states to regulate the real estate sector.
✔ It applies to both residential and commercial projects.
✔ Builders must register projects with RERA before launching sales.
✔ Ensures fair pricing, timely delivery, and buyer protection.

  1. Key Benefits of RERA for Home Buyers

A. Mandatory Project Registration

✔ Every real estate project with more than 500 square meters or 8 units must be registered with RERA.
✔ Builders must submit project details, approvals, financial plans, and deadlines to the regulatory authority.
✔ Buyers can verify project details online on RERA’s official website.

B. Transparency in Property Sales

✔ Builders must sell homes based on the carpet area (actual usable space) instead of the super built-up area.
✔ Developers cannot make misleading advertisements or change project plans without buyer consent.
✔ All project details, including completion timelines, must be available to buyers.

C. Protection Against Delayed Possession

✔ If a builder fails to complete the project on time, buyers can:

Claim a full refund with interest.

Continue with the project while receiving compensation for the delay.
✔ Interest on delays is calculated at 2% above the SBI MCLR rate.

D. Compulsory Use of Escrow Accounts

✔ Builders must deposit 70% of buyers’ money into a separate escrow account.
✔ Funds can only be withdrawn for construction-related expenses, ensuring timely project completion.
✔ Prevents the misuse of funds for other projects.

E. Right to Quality Construction & Defect Liability

✔ Buyers have a five-year warranty for structural defects and poor construction quality.
✔ If defects arise, the builder must fix them within 30 days at no cost.
✔ Buyers can file a complaint if the builder refuses to correct defects.

F. Buyer’s Right to Information

✔ Builders must provide:

Project layout, approvals, and completion schedule.

Details of materials used in construction.

Legal land ownership and clearances.
✔ Buyers can track project status online via RERA’s official portal.

  1. How to File a Complaint Under RERA?

✔ If a builder violates RERA rules, buyers can file a complaint online with their state RERA authority.
✔ Steps to file a complaint:

Visit the state’s RERA website.

Fill out the grievance form with details.

Upload relevant documents and proof.

Pay a small fee (varies by state).

The RERA tribunal will review and issue a verdict.
✔ Appeals can be made to the Real Estate Appellate Tribunal if the buyer is unsatisfied with the decision.

  1. RERA’s Impact on the Real Estate Sector

✔ Reduced project delays and fraud cases.
✔ Increased buyer confidence and investment in real estate.
✔ Forced builders to be more transparent and accountable.
✔ Enhanced ease of property transactions through online tracking and complaints.

Final Thoughts: Why RERA Matters

RERA has transformed India’s real estate market by ensuring transparency, fair pricing, and timely project delivery. As a home buyer, always check RERA registration before investing in a property.

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