RERA Guidelines Explained: What Every Property Buyer Should Know

RERA was enacted to protect home buyers and ensure transparency in the real estate sector. It regulates builders, agents, and housing projects so that people don't get cheated while buying property.

Key Highlights:

• Registration Mandatory: Builders must register their residential and commercial projects with RERA before advertising or selling.
• Timely Completion: Promoters must complete and deliver projects on time or face penalties.
• Advance Limit: Builders can't take more than a 10% advance from the buyer without a written agreement.
• Use of Funds: 70% of the buyer's money must be kept in a separate bank account, to be used only for that project.
• Carpet Area Clarity: Only the carpet area (actual usable space) is considered, with no misleading terms.
• RERA Website: Buyers can check project details, approvals, timelines, and complaints online on the official RERA site.
• Fast Dispute Resolution: Special RERA Authorities and Appellate Tribunals resolve buyer complaints quickly.
• Penalties: Builders and agents face heavy penalties or even jail for violations.

RERA Implementation Status 

Here’s a quick look at which states have active RERA bodies:

RERA FAQs

1. What is RERA?

RERA is a law to regulate the real estate sector and protect homebuyers from fraud.

2. Is RERA registration compulsory for all projects?

Yes. All residential and commercial projects above a certain size must be registered under RERA.

3. How can I check whether a project is RERA-registered?

Visit your state’s official RERA website and search using either the project name or the promoter’s name.

4. What happens if a builder ignores RERA registration?

The builders are charged with fines and punishments, including imprisonment.

5. Can one make a complaint in case the builder delays possession?

Yes, you can file a complaint with either the RERA authority or the Appellate Tribunal.

6. What is the maximum advance a builder can take before the agreement?

Merely 10% of the total cost.

7. What is the meaning of “carpet area” under RERA?

The carpet area is the area of the flat which is actually usable inside the walls of a flat, excluding the common areas.

8. Does RERA apply to ongoing projects only or new ones too?

RERA applies to new & ongoing projects more or less yet to be completed or sold.

9. Is a refund entailed if the builder cheats or delays?

Yes, under RERA, the buyer has the right to apply for a refund along with interest or damages.

10. Does RERA apply to land deals?

Only if it is part of a real estate project for the construction or sale of plots/flats.

11. What happens if a builder alters the layout plan after selling units?

Without the consent of not less than two-thirds of the buyers, they cannot rectify such plans.

12. Are real estate agents also bound to the provisions of RERA?

Yes, even agents have to register under RERA to function legally.

13. What is the time frame for dispute resolution under RERA?

Normally it happens within 60 days from the date of filing.

14. Can the buyers form an association or society under the aegis of RERA?

Yes, builders shall facilitate the formation of such associations upon the sale of the majority of flats.

15. Is RERA applicable to all states?

Yes, but the nature of RERA differs from state to state, with each state having its own RERA authority and website.

16. What is the penalty for delayed possession by the builder?

Builders may have to pay monthly interest or a full refund as per the wish of the buyer.

17. Can NRIs file complaints under RERA?

Yes, RERA protects the interests of both Indian buyers and NRI buyers.

18. Does RERA cover plot-only developments?

Yes, if plots are being sold as part of a larger development or layout.

19. Can I withdraw from the project if the builder has breached any terms?

Yes, and you are entitled to a refund with interest.

20. Where can I file a RERA complaint?

The RERA complaints can be filed at the official website of your state’s RERA authority or in person at their office.