Understanding RERA and Its Purpose
The real estate sector in India has long faced challenges like project delays, misadvertisements, and lack of transparency from developers. To tackle these issues, the government enacted the Real Estate Regulation and Development Act, 2016 (RERA). Its main goal is to regulate the real estate market, ensure transparency, and protect the interests of homebuyers.
Each state and union territory has a dedicated this authority. These authorities oversee real estate transactions, monitor developers, and resolve disputes. This structured approach has restored confidence among buyers who once faced uncertainty when investing in property.
Mandatory Registration of Projects
One of RERA’s strongest safeguards for buyers is mandatory project registration. Developers cannot sell or market residential or commercial projects above a certain size without registering with the state RERA authority.
Registration requires full disclosure, including:
- Layout plans
- Land title status
- Approvals from authorities
- Project financials
- Estimated completion date
This system prevents unauthorized projects from reaching the market. Buyers gain confidence, knowing only legitimate and verified projects are available for purchase.
On-Time Project Completion and Proper Fund Management
Previously, homebuyers often faced uncertain project timelines and fund mismanagement. it has addressed this by enforcing strict fund utilization rules. Developers must deposit at least 70% of project funds collected from buyers into a separate escrow account. These funds can only be used for the specific project, ensuring they do not get diverted elsewhere.
Developers are legally bound to adhere to project timelines. If they fail, buyers can claim compensation. This mechanism ensures accountability, reduces delays, and protects the financial interests of buyers.
Enhanced Transparency for Homebuyers
RERA has made information transparency a reality for property buyers. Every state maintains a RERA website, which contains:
- Verified project details
- Developer information
- Project progress updates
- Approvals and certifications
- Contact information
Before investing, buyers can check if a project is genuine, verify its status, and even look up prior complaints. This visibility empowers buyers to make informed decisions, avoiding potential scams or incomplete projects.
Buyers’ Rights and Grievance Redressal
RERA strengthens homebuyers’ legal rights. If a developer defaults on possession, provides substandard construction, or misleads buyers with false promises, the buyer can approach the RERA authority for redressal.
Key protections include:
- Compensation for project delays
- Right to cancel the booking under certain circumstances
- Access to appellate tribunals and consumer courts for disputes
This system ensures that homebuyers are not left helpless when issues arise, creating a safer and more reliable investment environment.
Expert Insight: Sanjeev Singh, MD of SKJ Landbase
“RERA has truly transformed the Indian real estate market. Buyers now feel secure while investing, knowing that transparency, accountability, and timely project delivery are enforced by law. For developers, it sets a benchmark to maintain quality and meet deadlines consistently. Overall, it builds trust between developers and homebuyers, which is crucial for a healthy property ecosystem,” says Sanjeev Singh, MD of SKJ Landbase.
Impact on the Real Estate Market
Since its implementation, RERA has introduced greater discipline into the real estate sector. Developers now prioritize compliance and timely delivery, which has:
- Strengthened buyer trust
- Encouraged healthy competition among developers
- Reduced fraudulent practices
Overall, RERA has made property investment safer, transparent, and more structured. Homebuyers today can invest with confidence, and developers are encouraged to maintain higher standards.
“The implementation of RERA has been a game-changer for the Indian real estate market. Buyers feel more secure, and developers are now focused on delivering quality projects on time,” adds Sanjeev Singh, MD of SKJ Landbase.
Conclusion: RERA as a Game-Changer
RERA has revolutionized the Indian real estate landscape. By enforcing registration, transparency, and accountability, it has safeguarded buyers’ investments and restored trust in the property market.
For anyone planning to buy property in India, checking RERA registration and project details is now an essential step. With RERA in place, the era of uncertain deliveries and hidden project risks is steadily fading, paving the way for a secure and organized real estate ecosystem.
