Understanding RERA: Why It Matters When Buying a Home

Buying a home can be both exciting and overwhelming. From legal paperwork to project delays, homebuyers often feel left in the dark. That’s where RERA (Real Estate Regulatory Authority) steps in to bring transparency, accountability, and protection to property buyers.

Whether you are a first-time buyer or an experienced investor, you must know RERA before you make a buying decision. Let's keep it simple.

✅ What is RERA?

The Real Estate (Regulation and Development) Act, 2016, also known as RERA, is a bill passed by the government of India that regulates the real estate industry. It protects homebuyers and encourages fair business practices among developers and builders.

Every state has a RERA authority—such as Karnataka RERA, Maharashtra RERA, etc.—to regulate and monitor real estate transactions in the state.

Why RERA Was Introduced

Before RERA, most homebuyers experienced problems such as:

Project delaysHidden costs

False promises

Legal disputes

Lack of accountability

RERA was introduced to solve these pain points and impose more order on an unorganised market.

Key Benefits of RERA for Homebuyers

1. Mandatory Project Registration

Developers are required to register their project with RERA prior to selling any units. They are not able to advertise or accept bookings without sanction.

✅ Benefit for You:

You only work with confirmed and legally sanctioned projects.

2. Transparent Project Details

Every detail—such as floor plans, sanction, carpet area, amenities, and schedules—needs to be announced on the RERA portal.

✅ Benefit for You:

You have total transparency without any hidden terms.

3. On-Time Delivery Guarantee

Developers are obligated by law to finish the project within the timelines provided at the time of registration. Delays come with penalties or compensation.

✅ Benefit for You:

No more waiting forever or rescheduled possession dates.

4. No Arbitrary Changes

Builders can't make changes, raise prices, or alter delivery dates without the buyer's permission.

✅ Benefit for You:

You receive what you paid for—no surprises.

5. Buyer's Money is Protected

At least 70% of the money of buyer should be held in an escrow account and utilised exclusively for that project.

✅ Benefit for You:

Your money is safeguarded from being used for other businesses.

6. Right to Information

You have the right to see every step of the development of the project.

✅ Benefit for You:

You remain updated and in command of your investment.

7. Grievance Redressal

If the builder does not deliver as per commitments, you can approach the RERA authority with a complaint, and the issue will be resolved in a hurry.

✅ Your Advantage:

You have access to the law without prolonged court cases.

How to Check if a Project is RERA-Approved

Go to your state's RERA website (e.g., https://rera.karnataka.gov.in).

Search using builder name, project name, or area.

Check registration status, completion date, approvals, and complaints (if any).

Avoid These: Indications of a Non-RERA Compliant Project

No RERA ID on advertisements or website

Unclear or too-good-to-be-true pricing without documentation

No written guarantee on possession dates

Aggressive sales without disclosure

If you notice any of these warning signs, exit the project.

Final Thoughts

RERA has been a turning point in Indian real estate, giving buyers more control over their decisions. It makes your home-buying process safer and smarter with transparency, accountability, and protection.

Before you make that investment, always ask one key question:

"Is this project RERA registered?"

Need assistance to locate RERA-approved properties in your city?

Speak to our real estate experts at Estatesquad—we shortlist only genuine projects to ensure your purchasing journey is risk-free and hassle-free.