What is RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark law that brought transparency and accountability to Indian real estate.
Before RERA, delayed projects, misleading brochures, and diverted funds were rampant. RERA changed the game.
Key Provisions of RERA
1. Project Registration is Mandatory
Every residential project with more than 8 units or plot area over 500 sqm must be registered with the state RERA authority before advertising or selling.
2. Builder Must Deposit 70% of Funds
Developers must keep 70% of the amount collected from buyers in a separate escrow account. This money can only be used for construction and land costs.
3. Carpet Area is Standard
Builders must sell based on carpet area (usable area), not super built-up area. No more inflated square footage claims.
4. Delivery Timeline is Binding
The project delivery date mentioned in the agreement is legally binding. Delays beyond this attract penalties and interest.
5. 5-Year Defect Liability
Builders are responsible for structural defects for 5 years after possession. They must fix issues within 30 days of a complaint.
How to Check RERA Registration
- Visit your state RERA website (e.g., MahaRERA for Maharashtra, RERA Karnataka, etc.)
- Search by project name or developer name
- Verify the RERA registration number mentioned in ads or brochures
- Check the project timeline, approved plans, and complaint history
Your Rights Under RERA
As a buyer, you can:
- File a complaint against the developer with RERA for delays, defects, or misrepresentation
- Claim interest on delayed delivery
- Demand refund with interest if the project is cancelled
- Access verified project information online
Penalties for Developers
| Violation | Penalty |
|---|---|
| Selling without RERA registration | Up to 10% of project cost |
| Providing false information | Up to 5% of project cost |
| Violating RERA orders | Jail up to 3 years |
Conclusion
RERA has empowered buyers like never before. Before buying any property, always verify RERA registration. It's not just a good practice — it's your legal right.
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