For anyone planning to buy a home in India, the process can be overwhelming and often risky. Project delays, surprise costs, and misleading sales tactics have plagued the sector for years. That's exactly why the government introduced the Real Estate (Regulation and Development) Act, or RERA, in 2016. Since coming into force on May 1, 2017, the law has changed how real estate transactions are done. If you're a buyer, knowing the key RERA rules isn't just helpful, it's essential.
Project Registration Isn't Optional
Under RERA, no builder can legally advertise or sell a property unless the project is registered with the state's Real Estate Regulatory Authority. This applies to all residential and commercial developments that exceed 500 square meters or include more than eight units. Every registered project has a unique ID, and all the details, layout, approvals, and timelines must be available on the RERA website. If it's not listed, that's your first red flag.
You Pay for What You Use, Nothing More
One of the oldest tricks in the book used to be charging buyers based on "super built-up area," a fuzzy metric that included staircases, lobbies, and sometimes even garden paths. RERA shut that down. Now, prices are based only on carpet area and the actual usable space within the walls of the apartment. That means fewer nasty surprises when you finally get the keys.
Advance Payments Are Capped
Before RERA, some builders demanded huge upfront payments, locking buyers into one-sided deals. Now, they can't ask for more than 10 per cent of the total cost before signing a sale agreement. This agreement must also follow a standardised format, protecting buyers from vague clauses or legal traps.
Your Money Stays in Your Project
To prevent developers from siphoning funds to other ventures, RERA requires that 70 per cent of buyer payments be kept in an escrow account dedicated solely to that project. The money can only be withdrawn in stages and only after clearance from an architect, engineer, and accountant. If a builder runs out of money mid-project now, it's not because they weren't given enough.
Delays Come With Consequences
Project not delivered on time? RERA makes builders legally accountable. Buyers can either withdraw and get a full refund with interest or stay on board and receive monthly interest until possession. No more endless waiting with no compensation.
Rights of Buyer Under the RERA
From building plans and environmental clearances to construction progress and completion timelines, RERA mandates that developers put it all out in the open. You're entitled to updates every quarter, and those updates must be posted on the RERA portal. If your builder goes silent, they're breaking the law.
No Backdoor Changes
Builders can't suddenly alter floor plans or reduce your balcony space unless two-thirds of the allottees approve the change in writing. It's your home, and now you have a say in what happens to it.
Five-Year Guarantee on Construction Quality
If something breaks or cracks within five years of moving in, whether it's a plumbing fault or a structural defect, developers are on the hook. They have 30 days to fix it at no extra cost. Fail to do so? You can demand compensation.
Complaints Are Heard and Fast
Each state has a RERA Appellate Tribunal. Buyers can file complaints online and expect a resolution within 60 days. Whether it's a delay, a lie, or a breach of contract, there's a legal route that doesn't drag on for years.
Parking and Maintenance Charges Are Regulated
Open parking spaces can't be sold; they're part of the common area. Covered parking? That's allowed, but only if it's clearly listed in the agreement. Maintenance fees must reflect actual costs, not inflated estimates. Builders must show the math.
States Add Their Own Spin
While RERA is a central law, its implementation differs by state. Maharashtra's MahaRERA leads the pack with features like third-party construction audits and time-bound amenity promises. Karnataka enforces strict definitions on carpet areas and mandates 70 per cent fund lock-ins. Gujarat, Odisha, and Haryana have added layers of local oversight like agent licensing and region-specific tribunals to better fit their markets.
RERA changed the game. It gave homebuyers teeth. But knowing the law is only half the battle; you need to use it. Before putting down your hard-earned money, check if the project is registered, read every clause of the builder-buyer agreement, verify the promised specs, and stay informed through the RERA portal. You're not just buying a flat; you're investing in peace of mind. RERA helps, but only if you pay attention.
