RERA for Homebuyers: What It Protects and How to Check a Project

The Real Estate (Regulation and Development) Act, 2016 created a regulator in each state and a set of rules for builders selling under-construction projects. It does not guarantee a project will be delivered on time, but it gives buyers information and remedies they did not have before.

What RERA requires from promoters

• Registration of eligible projects with the state RERA authority before advertising or selling.
• Disclosure of approvals, layout plans, the number and carpet area of units, and the proposed completion date.
• Depositing 70% of amounts collected from buyers in a separate account, to be used for the project's construction and land cost.
• Selling on the basis of carpet area — the usable floor area inside the walls of the flat.
• Periodic updates on construction progress and bookings on the RERA portal.
• Fixing structural defects reported within five years of possession, as provided under the Act.

A five-step check before you book

1. Find the RERA number on the advertisement or brochure and search it on your state RERA portal.
2. Confirm that the project name, promoter name, address and phase match what you are being sold.
3. Open the uploaded documents: approvals, sanctioned plans and the declared completion date.
4. Look at progress updates and compare them with the site. Large gaps are a warning sign.
5. Search for complaints or orders against the project and the promoter.

If something goes wrong

Buyers can file complaints with the state RERA authority for issues such as delays, deviations from sanctioned plans or failure to hand over documents. The process and fees vary by state, and orders can be appealed before the appellate tribunal. Keep your agreement, payment receipts and correspondence organised from day one.