Buying a home is one of the biggest financial decisions most of us will ever make. It’s exciting, but it can also feel overwhelming. For years, homebuyers had very little protection if a project was delayed, if the builder changed plans without notice, or if the promised quality wasn’t delivered. That’s where RERA comes in.
The Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced in 2016 to bring transparency and accountability into the real estate sector. It was designed to protect buyers like you from unfair practices and to make the process of buying property more secure.
What RERA Means for Homebuyers
1. Mandatory Project Registration
Builders can’t just launch a project and start selling units anymore. Every real estate project above a certain size has to be registered with the state’s RERA authority. This ensures that only approved and legal projects are being sold to buyers.
2. Transparency in Information
RERA requires developers to share clear details about their projects, including layout plans, timelines, and approvals. This information is available on the RERA website, so buyers can verify everything before investing.
3. Protection from Delays
One of the biggest issues buyers faced earlier was delayed possession. Under RERA, if a builder fails to deliver the property on time, the buyer is entitled to compensation or even a full refund with interest.
4. Standardized Payments
RERA ensures that developers can’t ask for more than 10% of the property’s cost as an advance before signing the agreement for sale. This prevents buyers from being overcharged upfront.
5. Quality Assurance
If you find structural defects or poor workmanship within five years of taking possession, the builder is required to fix it at no extra cost.
6. Buyer’s Right to Information
Buyers now have a legal right to know exactly where their money is going, how much of the project has been completed, and what the next stage of construction looks like.
Why RERA Matters
In simple terms, RERA balances the relationship between builders and buyers. Before the Act, the system was heavily tilted in favor of developers, and buyers often had little control once they signed on the dotted line. Today, the rules are clearer, the timelines are stricter, and there are real consequences for non-compliance.
RERA has changed the way real estate transactions work in India. While it may not eliminate every risk, it has given homebuyers a much stronger safety net. If you’re planning to buy a flat or a bungalow, make sure the project is RERA-registered. It’s one of the simplest steps you can take to protect your investment and buy with confidence.
FAQs on How RERA Protects Homebuyers
1. What is RERA and why is it important for homebuyers?
RERA stands for the Real Estate (Regulation and Development) Act. It was introduced to protect buyers by bringing transparency, accountability, and fairness to property transactions.
2. How does RERA protect homebuyers from project delays?
If a builder delays possession, RERA gives buyers the right to compensation or a full refund with interest. This ensures developers stick to promised timelines.
3. Is it mandatory for projects to be RERA-registered?
Yes. Any real estate project above a certain size must be registered under RERA before being marketed or sold. Buyers should always check a project’s RERA registration before investing.
4. Can a builder demand more than 10% as advance booking under RERA?
No. Under RERA, a developer cannot collect more than 10% of the property value as advance before signing the agreement for sale.
5. What if there are construction defects after possession?
RERA makes the builder responsible for fixing structural defects or poor workmanship for up to five years after possession, at no extra cost to the buyer.
6. How can homebuyers check if a project is RERA-registered?
You can visit your state’s RERA website and search for the project using the registration number, builder’s name, or project name.