The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted by the Government of India to regulate the real estate sector and protect homebuyers from fraud, delays, and unfair practices. It establishes a transparent and efficient process for real estate transactions, ensuring developers and buyers follow a well-defined framework.

1. What is RERA?

RERA is a legal framework that governs real estate transactions across India. Under this Act:

• Every real estate project (above a specific size) must be registered with the State RERA authority before being launched for sale.

• Developers and agents must comply with strict disclosure, financial, and construction norms.

• Buyers get access to accurate project details, ensuring transparency.

Each state in India has its own RERA website, where buyers can check registered projects and developers.

2. Why is RERA Registration Crucial Before Buying a Property?

A. Ensures Legality & Compliance

A RERA-registered project follows all legal norms and government approvals, reducing the risk of fraud. Builders cannot advertise or sell without registering under RERA, ensuring buyers invest in legally sound projects.

B. Protects Buyers from Delays

Before RERA, delays were a major issue in the real estate sector. Builders often failed to deliver projects on time. Now:

• Developers must provide a definite timeline for project completion.

• If they fail to meet the deadline, they are legally obligated to compensate buyers with interest on the invested amount.

C. Regulates Pricing – No Hidden Charges

One of the biggest problems homebuyers faced earlier was unclear pricing. Builders used terms like "super built-up area," which included common spaces like staircases and lobbies, leading to overpricing.
With RERA:

• Prices must be based only on carpet area (actual usable space inside the home).

• Builders cannot add hidden costs—the total price, including taxes and maintenance, must be disclosed upfront.

D. Prevents Misuse of Funds

Many projects were stalled earlier because developers used funds from one project to finance another. RERA prevents this by mandating:

• 70% of the total money collected from buyers must be deposited in a separate escrow account.

• These funds can only be used for the same project's development.

• This ensures that buyers’ money is not misused, reducing the risk of incomplete projects.

E. Right to Accurate Information

RERA ensures that homebuyers have access to accurate project details, including:

• Construction progress.

• Layout plans and approvals.

• Project completion date.

• Legal disputes (if any).

All this information is publicly available on the state's RERA website, allowing buyers to verify the project's authenticity.

F. Quality Assurance – Protection Against False Promises

Many developers used to promise high-end amenities but delivered substandard quality. Now, under RERA:

• The builder is responsible for structural defects or poor construction quality for five years after possession.

• If issues arise, the developer must fix them within 30 days at no extra cost to the buyer.

G. Strict Compliance for Builders & Agents

• Builders must obtain RERA approval before marketing or selling any project.

• Real estate agents must register under RERA to operate legally.

• Developers must submit quarterly updates on project progress.

• Misleading advertisements or false promises can lead to legal penalties and cancellation of the project.

H. Quick Dispute Resolution

Before RERA, homebuyers had to go through long court battles to resolve disputes. Now, RERA has set up:

• A Real Estate Regulatory Authority (RERA Tribunal) for quick dispute resolution.

• If buyers have any complaints about delays, poor quality, or unfair practices, they can file a complaint with RERA.

• Decisions are made within 60 days, ensuring fast and fair resolution.

3. How to Check a Project's RERA Registration?

Before buying a property, follow these steps to verify its RERA registration:

Step 1: Visit the State RERA Website

Each state has a dedicated RERA website. For example:

• Tamil Nadu RERA (TNRERA) – www.rera.tn.gov.in

• Maharashtra RERA (MahaRERA) – https://maharera.maharashtra.gov.in/

• Delhi RERA – www.rera.delhi.gov.in

Step 2: Search for the Project

• Enter the project name, developer name, or registration number.

• Check details like approvals, project status, and complaints (if any).

Step 3: Verify Key Details

• Confirm that the project's completion date matches what the builder promised.

• Ensure the builder’s name and contact details match official records.

• Check for any past complaints or pending cases.

4. What Happens If a Project is Not RERA Registered?

If a project is not registered under RERA, buyers should be cautious because:

• The developer may not have all approvals, increasing legal risks.

• There is no guarantee of timely possession, and delays are common.

• Buyers cannot use the RERA dispute resolution system for complaints.

Many reputed banks do not provide home loans for unregistered projects, making financing difficult.

5. Benefits of Buying a RERA-Registered Property

6.  Why You Must Check RERA Before Buying a Property

RERA has transformed the Indian real estate sector, making it more buyer-friendly, transparent, and legally secure. Whether you are a first-time homebuyer or an investor, always check a project's RERA registration before making any payments.

https://www.livehomes.in/blogs