The real estate sector has long been one of the most dynamic — yet least regulated — industries in India. For decades, homebuyers and investors grappled with delayed possession, lack of transparency, and unfair practices. The enactment of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, marked a transformative shift. It introduced accountability, efficiency, and transparency in the real estate sector, empowering buyers like never before.
1. What is RERA?
RERA is a central legislation aimed at regulating the real estate sector and protecting the interests of consumers. Each state and union territory in India has its own Real Estate Regulatory Authority to oversee and enforce the provisions of the Act.
The primary objectives of RERA are:
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Promoting transparency in real estate projects.
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Ensuring timely delivery of properties.
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Standardizing practices and reducing fraud.
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Creating a grievance redressal mechanism for buyers.
2. Key Provisions of RERA
a. Mandatory Registration
All commercial and residential real estate projects above a certain size must be registered with the respective state’s RERA authority before advertising or selling.
b. Project Disclosures
Developers must provide detailed information including project plans, layout, land title status, approvals, and timelines. These details are made publicly available on the RERA portal.
c. Advance Payment Cap
Promoters cannot demand more than 10% of the property’s cost as advance from buyers without entering into a written agreement for sale.
d. Escrow Account Rule
Developers must deposit 70% of the project funds in a dedicated escrow account, ensuring money is used only for that specific project — thereby minimizing fund diversion and delays.
e. Timely Possession
Strict timelines for project completion are mandated. If a developer fails to deliver on time, the buyer is entitled to a full refund or interest on the amount paid.
f. Defect Liability
If a buyer notices any structural defect or poor workmanship within 5 years of possession, the builder is obliged to fix it at no extra cost.
3. Rights of Homebuyers Under RERA
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Right to Information: Buyers can access verified project details, progress updates, and legal clearances.
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Right to Timely Possession: If possession is delayed, buyers can seek compensation or withdrawal with refund.
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Right to Refund and Compensation: In cases of fraud, misrepresentation, or non-compliance by the builder.
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Right to Legal Redressal: Consumers can file complaints with the RERA Authority or Appellate Tribunal for quick resolution.
4. Impact of RERA on the Real Estate Sector
Since its implementation, RERA has had a significant impact:
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Increased buyer confidence and legal empowerment.
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Improved accountability among developers.
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Encouraged structured and regulated growth in the sector.
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Reduced project delays and fly-by-night operators.
5. Challenges in Implementation
While RERA has brought much-needed reforms, challenges remain:
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Variation in rules across states due to decentralization.
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Delays in setting up appellate tribunals in some states.
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Resistance from some developer lobbies.
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Lack of awareness among homebuyers.
Still, the law continues to evolve and gain strength through judicial interpretation and active implementation by state authorities.
Conclusion: Rights Beyond the Blueprint
RERA has transformed the real estate landscape from an opaque, builder-centric domain into a buyer-aware and legally structured environment. Whether you’re planning to invest, buy your dream home, or seek justice in a delayed project, understanding your rights under RERA is essential.
