Understanding RERA: What It Actually Means for Home Buyers

If you’re buying a home or investing in real estate in 2025, you must understand RERA (Real Estate Regulation and Development Act)- your legal shield against fraud, delays, and misinformation.

Here’s everything you need to know about RERA:

What is RERA?

• Introduced in 2016 by the Government of India

• Applies to residential & commercial projects above a certain size

• Aims to protect homebuyers and ensure builder accountability

• Enforced by state-specific RERA authorities

Curious how top luxury projects align with these RERA mandates?
Explore these 5 Gurgaon projects that are setting benchmarks in compliance and transparency.

 Why Was RERA Introduced?

Before RERA:

• Builders delayed possession by years

• Layouts and tower plans often changed after booking

• Prices and taxes were unclear

• Buyers had no legal support

 What Projects Need RERA Registration?

• Projects with area > 500 sq. m. or more than 8 units

• Ongoing projects without Occupancy Certificate (OC)

• All phases of a large project must be registered separately

 Key Benefits of RERA for Buyers

✅ Mandatory Registration

• No builder can advertise or sell without a valid RERA number

• Buyers can check all project documents online

✅ Builder Accountability

• Builder must deliver as per original timeline and plan

• Delay = compensation or full refund + interest

For instance, premium developments like Trump Towers reflect how timely delivery and transparency improve buyer trust in the post-RERA era.

✅ Escrow Account Rule

• 70% of customer funds must go into a separate escrow account

• This ensures money is spent only on that project

✅ Advance Payment Cap

• Builders can’t take more than 10% of property value as booking advance before agreement

✅ Carpet Area Clarity

• Pricing now based on carpet area only; no more inflated super built-up pricing

✅ Defect Liability (5-Year Warranty)

• Any construction defect within 5 years must be fixed by the builder at no cost

✅ No False Advertising

• What’s shown in brochures, ads or online must match reality

• If not, you can legally challenge the builder

 How to Check if a Project is RERA Registered

• Visit your state RERA portal (like haryanarera.gov.in)

• Search by:

  • Project Name

  • Promoter Name

  • Location

• Check:

  • RERA Registration Number

  • Delivery timelines

  • Floor plans, approvals, litigation (if any)

 How to File a Complaint Under RERA

• Visit state RERA site → Click on “Complaint”

• Upload your documents (agreement, receipts, screenshots)

• Tribunal resolves cases in 60 days

• You can appeal to Real Estate Appellate Tribunal (REAT) if needed

 What RERA Doesn’t Cover

• Projects with Occupation Certificate before May 1, 2017

• Land deals or rental agreements

• Disputes between tenants and landlords

 

RERA vs Pre-RERA-  Quick Comparison

Feature	Before RERA	After RERA
Project Delays	Common, no penalty	Builder pays interest/refund
Money Use	Funds diverted to other projects	70% funds locked for that project
Legal Access	Long civil cases	Fast-track tribunal resolution
Pricing	Based on super built-up area	Only carpet area allowed
Buyer Protection	Weak	Strong and legal-backed

Use RERA to Stay Safe

Whether you’re buying your first flat or investing in a luxury property, RERA ensures you’re protected. It gives you legal rights, transparency, and the power to challenge shady practices.

o   Always check the RERA number

o   Don’t pay more than 10% upfront

o   Know your refund & delay rights