What is RERA?
The Real Estate Regulatory Authority (RERA) was established under the Real Estate (Regulation and Development) Act, 2016. It is a regulatory body that aims to protect home buyers and promote transparency in the real estate sector. Each state in India has its own RERA authority.
Under RERA, all residential and commercial real estate projects with land area exceeding 500 square meters or more than 8 apartments must be registered with the state RERA before marketing or selling. Builders must disclose project details, timelines, and approvals on the RERA website.
Why RERA Compliance Matters for Buyers
RERA compliance offers several critical protections for property buyers:
- Transparency — Builders must disclose all project details, including approvals, layout plans, and completion timelines.
- Timely Possession — If the builder delays possession beyond the committed date, buyers are entitled to compensation.
- Quality Assurance — Builders must rectify structural defects reported within five years of possession.
- Escrow Account — 70% of buyer payments go into an escrow account, ensuring funds are used only for construction.
- Legal Recourse — Buyers can file complaints with RERA against builders for unfair practices or delays.
How to Check if a Project is RERA Compliant
Verifying RERA compliance is straightforward:
- Visit the official RERA website of the state where the project is located (e.g., UP RERA for Noida, Haryana RERA for Gurugram).
- Search for the project by name, builder name, or RERA registration number.
- Check the project status — it should show "Registered" or "Active", not "Expired" or "Cancelled".
- Review the project details — approved plans, number of units, completion timeline, and quarterly updates.
If a project is not registered with RERA, it is illegal to market or sell it. Avoid such projects regardless of how attractive the pricing may seem.
What if the Builder is Not RERA Compliant?
If you discover that a builder is selling without RERA registration, you have several options:
- File a complaint with the state RERA authority immediately.
- Refrain from making any further payments to the builder.
- Consult a legal expert to explore options for recovering your investment.
- Engage a property verification service to assess the full extent of the risk.
At Valuenomics Advisory LLP, we include RERA compliance verification in all our property verification reports. We help you identify non-compliant projects before you commit your hard-earned money.