The Real Estate Regulation and Development Act, commonly known as the RERA Act, was enacted in India to protect homebuyers and ensure transparency in the real estate sector. Introduced in 2016, this landmark legislation has transformed how real estate transactions are conducted, offering a framework for resolving disputes and ensuring accountability among builders and developers.
In this blog, we will explore what RERA is, its full form, the benefits it offers, and the process for ensuring RERA compliance. We will also provide a guide on how to identify RERA-approved projects, ensuring you make informed decisions in your real estate investments.
What is the RERA Act?
The RERA Act, or the Real Estate Regulation and Development Act, was enacted by the Indian Parliament in March 2016, with most of its provisions coming into effect on May 1, 2017. The primary objective of the RERA Act is to regulate the real estate sector, protect the interests of homebuyers, and promote transparency and accountability among real estate developers.
RERA aims to eliminate common issues such as project delays, price escalations, and unfair practices that have plagued the real estate sector for years. By mandating strict compliance and providing a robust grievance redressal mechanism, RERA ensures that both buyers and developers operate within a regulated framework.
Some Important Points Under RERA
The RERA Act introduces several key provisions designed to bring order to the real estate sector in India. Here are some of the most important points under RERA:
- Mandatory Registration: All real estate projects with a land area exceeding 500 square meters or more than eight apartments must be registered under RERA. Without registration, developers cannot advertise, market, or sell their projects.
- Project Transparency: Developers are required to disclose full project details, including land status, approvals, and timelines, on the RERA website. Any changes in the project plan must be approved by two-thirds of the buyers.
- Advance Payment Restrictions: Builders cannot accept more than 10% of the property’s cost as an advance before signing a sale agreement.
- Escrow Account: Developers must deposit 70% of the project’s funds in an escrow account to ensure that the money is used only for the project’s construction and land costs. This provision prevents the diversion of funds to other projects.
- Timely Project Completion: Developers must adhere to the timelines they commit to under the RERA Act. Failure to do so can result in penalties and compensation to buyers.
- Grievance Redressal: RERA provides a quick and efficient grievance redressal mechanism. Buyers can approach the RERA authorities if they face issues with the developer.
Key Benefits of RERA
RERA has brought about significant changes in the real estate sector, offering numerous benefits to both buyers and developers. Here are the key benefits of RERA:
- Increased Transparency: RERA mandates that developers disclose all project-related information, which is accessible to buyers on the official RERA website. This transparency helps buyers make informed decisions.
- Accountability of Developers: Developers are held accountable for delivering projects on time and as per the agreed specifications. Failure to do so can result in penalties and compensation to buyers.
- Protection of Homebuyers’ Interests: RERA protects homebuyers from fraudulent practices by developers. It ensures that the property purchased is delivered as promised.
- Standardized Carpet Area: RERA has standardized the definition of carpet area, ensuring that buyers are not misled about the size of the property.
- Grievance Redressal Mechanism: RERA provides a fast and efficient grievance redressal mechanism, enabling buyers to resolve disputes with developers without lengthy legal battles.
- Reduced Risk of Project Delays: With the requirement of an escrow account and strict adherence to project timelines, the risk of project delays is significantly reduced under RERA.
States That Have Enforced the RERA Act
Since its enactment, the RERA Act has been enforced in almost all states and Union Territories in India. However, the implementation and rules may vary slightly from state to state. Here are some states that have implemented RERA, along with official links to their respective RERA websites:
| Sr. No. | State-Wise RERA | Official Site |
| 1 | Andaman & Nicobar | http://rera.telangana.gov.in/ |
| 2 | Andhra Pradesh | https://www.rera.ap.gov.in |
| 3 | Assam | https://rera.assam.gov.in/ |
| 4 | Bihar | https://rera.bihar.gov.in/ |
| 5 | Chandigarh | http://rera.chd.gov.in/ |
| 6 | Chhattisgarh | https://rera.cgstate.gov.in/ |
| 7 | Dadra and Nagar Haveli & Daman and Diu | https://maharera.mahaonline.gov.in/ |
| 8 | Delhi | https://rera.delhi.gov.in/ |
| 9 | Goa | https://rera.goa.gov.in/reraApp/ |
| 10 | Gujarat | https://gujrera.gujarat.gov.in/ |
| 11 | Haryana | https://haryanarera.gov.in/ |
| 12 | Himachal Pradesh | http://www.hprera.in |
| 13 | Jharkhand | https://jharera.jharkhand.gov.in/ |
| 14 | Karnataka | https://rera.karnataka.gov.in/ |
| 15 | Kerala | https://rera.kerala.gov.in/ |
| 16 | Lakshadweep | https://rera.kerala.gov.in/ |
| 17 | Madhya Pradesh | http://www.rera.mp.gov.in/ |
| 18 | Maharashtra | https://maharera.mahaonline.gov.in/ |
| 19 | Mizoram | https://udpa.mizoram.gov.in/page/real-estate-regulatory-authority-rera |
| 20 | Odisha | http://rera.odisha.gov.in/ |
| 21 | Puducherry | http://prera.py.gov.in/ |
| 22 | Punjab | https://rera.punjab.gov.in/ |
| 23 | Rajasthan | http://rera.rajasthan.gov.in/ |
| 24 | Tamil Nadu | https://rera.tn.gov.in/ |
| 25 | Telangana | http://rera.telangana.gov.in/ |
| 26 | Tripura | https://rera.tripura.gov.in/ |
| 27 | Uttrakhand | http://www.uhuda.org.in/ |
| 28 | Uttar Pradesh | http://www.up-rera.in |
Each of these state RERA websites provides detailed information about registered projects, approved agents, and mechanisms for filing complaints, making it easier for homebuyers to verify the legitimacy of a project.
How Do I Ensure That a Property is RERA Compliant?
Ensuring that a property is RERA compliant is crucial before making any real estate investment. Here are the steps you can take:
- Check RERA Registration: The first step is to verify whether the project is registered under RERA. Visit the official RERA website of the respective state and search for the project using its registration number or name.
- Verify Project Details: On the RERA website, you can view all the project details, including the status of approvals, project completion timeline, and the layout plan. Ensure that these details match the developer’s promises.
- Cross-Check Developer’s History: It’s wise to check the developer’s track record for previous projects on the RERA website. Look for any complaints or delays associated with their past projects.
- Review the Sale Agreement: Ensure that the sale agreement includes all the details required by RERA, such as the carpet area, project completion date, and penalty clauses in case of delays.
- Seek Legal Advice: Before signing any documents, it’s advisable to seek legal advice to ensure that all the clauses are in line with the RERA Act.
How Do I Find RERA Approved Projects?
Finding RERA-approved projects is straightforward with the help of the official RERA websites. Here’s how you can find RERA-approved projects:
- Visit the State RERA Website: Start by visiting the RERA website of the state where you are looking to buy a property. Each state has its own dedicated RERA portal.
- Search for Projects: Use the search function on the website to find registered projects. You can search by project name, registration number, developer name, or location.
- Review Project Details: Once you find a project, review its details to ensure it meets your requirements. You can check the project’s status, approvals, and completion timeline.
- Check for Complaints: The RERA website also lists any complaints filed against the project or developer. This can give you insights into potential issues with the project.
- Contact the Developer: After identifying a suitable project, contact the developer for a site visit and further discussions. Ensure that all verbal promises are documented in the sale agreement.
A final observation
The RERA Act has revolutionized the real estate sector in India by bringing transparency, accountability, and a much-needed grievance redressal mechanism. Whether you’re a first-time homebuyer or a seasoned investor, understanding the provisions of RERA is essential to safeguard your interests.
By ensuring that a property is RERA compliant, you can mitigate risks and make informed decisions in your real estate investments. Always use the official RERA websites to verify project details and ensure that your investment is secure. With the right knowledge and resources, RERA can be your best ally in navigating the complex world of real estate in India.