What Should You Look For Before Buying A House?
In the past, homebuyers in India often faced uncertainty, delays, and a lack of transparency when dealing with real estate developers. To address these challenges and bring accountability to the sector, the Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced in 2016. Since then, RERA has significantly transformed the landscape of Indian real estate by protecting the interests of homebuyers and promoting fair practices.
What is RERA?
RERA stands for the Real Estate Regulatory Authority, an act of the Parliament of India that aims to regulate the real estate sector and ensure transparency in transactions. It mandates developers to register their residential and commercial projects with the regulatory authority before advertising or selling.
Each state and union territory in India has its own RERA authority, responsible for overseeing the implementation of the act locally. For example, in Maharashtra, it’s known as MahaRERA.
Why Was RERA Introduced?
Before RERA, the real estate sector was largely unregulated. Many buyers faced issues like:
Delay in project completion
Changes in project plans without notice
Lack of proper documentation
Misuse of funds collected from buyers
To tackle these issues, RERA was introduced with the primary goals of:
Protecting consumer interests
Promoting transparency and accountability
Creating a fast-track mechanism for dispute resolution
Standardizing practices across the industry
Key Features of RERA
Mandatory Project Registration
Developers must register their projects with the respective RERA authority. Projects without registration are deemed illegal for sale or marketing.Escrow Account Requirement
Developers are required to deposit 70% of the project funds collected from buyers into a separate escrow account. This ensures the money is used only for that particular project and not diverted elsewhere.Timely Project Delivery
Builders are legally bound to deliver projects by the promised date. Failing to do so makes them liable to pay penalties or even offer a refund.No Changes Without Consent
Builders cannot make any major changes to the project layout, specifications, or plans without the consent of two-thirds of the allottees.Clear Definition of Carpet AreaRERA has standardized the definition of “carpet area” to prevent misrepresentation. Buyers now have a clear understanding of the actual usable area.
Grievance Redressal
Buyers can file complaints against builders or agents with the respective RERA authority. Disputes are resolved through a fast-track adjudication system.
Benefits of RERA for Homebuyers
Increased Transparency: Buyers have access to project details like approvals, completion status, and builder credentials.
Greater Accountability: Developers are held responsible for their promises.
Legal Protection: Buyers can approach RERA in case of fraud, delays, or violations.
Fair Pricing: Clear definition of carpet area and project costs prevents hidden charges.
How to Check a RERA-Registered Project
Each state RERA authority has an official website where you can:
Verify if a project is registered
View project details, timelines, and approvals
Check the developer’s track record
For instance, if you’re buying property in Maharashtra, you can visit maharera.mahaonline.gov.in to look up a project’s RERA number and status.
Conclusion
RERA has brought a much-needed shift in the Indian real estate sector by instilling trust, accountability, and legal protection for homebuyers. Whether you’re planning to invest in a residential apartment or a commercial space, checking a project’s RERA registration should be your first step.
By empowering consumers and regulating developers, RERA is paving the way for a more transparent and buyer-friendly real estate environment in India.
