India
📌 Introduction
RERA Act Rules for Buyers are designed to protect the interests of homebuyers and bring transparency in the Indian real estate sector. Before the Real Estate (Regulation and Development) Act, 2016 (RERA), property buyers often faced issues like project delays, hidden charges, false promises, and lack of accountability from builders.
To fix these problems, the Government of India implemented the RERA Act to regulate the real estate industry, safeguard buyers’ rights, and ensure timely project completion.
In this detailed guide, we’ll understand:
- What is the RERA Act
- Key rules of RERA for buyers
- Rights and duties of buyers under RERA
- How to check RERA registration
- RERA complaint and dispute resolution process
- Benefits of RERA for buyers
- Challenges and tips for buyers
Table of Contents
🏢 What is the RERA Act?
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is a central law that regulates real estate projects and ensures transparency between builders and buyers.
It aims to:
- Protect homebuyers from fraud or malpractice
- Standardize the process of property sales
- Increase accountability of developers and agents
- Promote timely completion of projects
📋 Key RERA Act Rules for Buyers
Here are the most important RERA rules that directly benefit property buyers:
| Rule No. | Provision | Benefit to Buyer |
|---|---|---|
| 1 | Mandatory RERA Registration | Developers must register projects above 500 sq.m. or 8 flats with RERA authority |
| 2 | Advance Payment Limit | Builder cannot take more than 10% of the property cost as advance before signing agreement |
| 3 | Escrow Account | 70% of buyer’s money must be kept in a separate escrow account for construction use only |
| 4 | Timely Project Completion | Developers must deliver the project on time or pay interest to buyers |
| 5 | Transparency in Marketing | Builders must show accurate project details (layout, approvals, schedule) |
| 6 | Defect Liability | Builder must fix any construction defect reported within 5 years of possession |
| 7 | No Changes Without Consent | Builders cannot change plan or design without written consent of 2/3rd buyers |
| 8 | Penalties on Builders | Heavy penalties and imprisonment for non-compliance with RERA rules |
⚖️ Rights of Buyers Under the RERA Act
Under the RERA Act, buyers get several legal rights that ensure their investment is safe and secure:
1. Right to Information
Buyers have the right to get complete and accurate details about the project — layout, approvals, land status, schedule of completion, carpet area, and builder’s license.
2. Right to Timely Possession
If the builder fails to deliver the property on time, the buyer can:
- Exit the project and get a full refund with interest, or
- Continue with the project and receive monthly interest for delay.
3. Right to Claim Compensation
In case of defective construction, structural defects, or any service deficiency, the buyer can demand free repair within 5 years of possession or claim compensation.
4. Right to Approved Plans
Buyers can demand the final sanctioned plans and layout approved by the local authority and check if any changes are made without their consent.
5. Right to Fair Advance Payment
Builders can only take 10% advance before signing the sale agreement. This prevents buyers from paying huge amounts without legal security.
6. Right to Complaint and Redressal
If the builder violates RERA rules, buyers can file a complaint to the State RERA Authority or Appellate Tribunal and get quick resolution.
📑 Duties of Buyers Under RERA
Along with rights, buyers also have certain responsibilities under the RERA Act:
- Make payments as per the agreed schedule in the sale agreement
- Pay interest on delayed payments (if buyer delays)
- Take possession within two months of receiving the occupancy certificate
- Participate in forming the Resident Welfare Association (RWA)
- Maintain the property as per guidelines after possession
🖥️ How to Check RERA Registration of a Project
Before investing in any property, buyers must check if the project is RERA registered.
Here’s a simple step-by-step guide:
- Visit your State RERA Authority website (like UP-RERA, MahaRERA, etc.)
- Go to the “Registered Projects” or “Search Project” section
- Enter the project name, builder name, or RERA registration number
- Check details like approvals, layout, completion timeline, and promoter information
✅ Tip: Avoid buying properties that are not RERA-registered.
⚖️ RERA Complaint Process for Buyers
If a builder violates RERA provisions, buyers can file a complaint.
Here’s how:
| Step | Process |
|---|---|
| 1 | Visit the State RERA website |
| 2 | Register/Login as a complainant |
| 3 | Fill out the complaint form with details of the project and grievance |
| 4 | Upload supporting documents (sale agreement, receipts, communication) |
| 5 | Pay the prescribed complaint fee |
| 6 | Appear in hearings before the RERA authority or tribunal |
📌 RERA authorities are required to resolve disputes within 60 days from the filing date.
💡 Benefits of RERA Act for Buyers
RERA has transformed the Indian real estate sector and brought several benefits for buyers:
- Transparency in project details and approvals
- Financial security due to escrow account system
- Assurance of timely project completion
- Legal remedies and fast complaint resolution
- Protection from fraud, misrepresentation, or false marketing
- Higher quality standards due to defect liability clause
- Greater accountability of builders and agents
⚠️ Common Challenges Faced by Buyers
While RERA has helped buyers, some challenges still exist:
- Delays in RERA dispute resolution in some states
- Low awareness among first-time buyers about RERA rules
- Some small projects try to avoid RERA registration
- Limited enforcement powers of RERA in certain regions
📌 Solution: Buyers must research, check RERA registration, read agreements carefully, and seek legal advice before investing.
📈 Future of RERA in India
The RERA framework is still evolving. In the coming years, we can expect:
- Stricter penalties on defaulters
- Faster online grievance redressal systems
- Integration with land record systems for transparency
- Mandatory RERA registration even for smaller projects
- More awareness drives for homebuyers
Read Also- What is Nidhi Company Registration in India ?
📋 Quick RERA Compliance Checklist for Buyers
| ✅ Checklist | Description |
|---|---|
| Check RERA Registration | Verify on state RERA portal |
| Verify Builder Credentials | Past projects, litigation history |
| Read the Sale Agreement | Ensure RERA clauses are included |
| Confirm Approved Plans | Cross-check with local authority |
| Track Construction Progress | Ask for periodic updates |
| Get OC/CC Before Possession | Occupancy & Completion Certificate |
| Join RWA After Possession | Participate in management |
📝 Conclusion
RERA Act Rules for Buyers have made the Indian real estate market more transparent, safe, and buyer-friendly. As a property buyer, knowing your rights and duties under RERA can protect you from delays, frauds, and disputes. Always verify the RERA registration of a project before investing, and don’t hesitate to raise complaints if your rights are violated.
By being informed and vigilant, you can ensure your dream home is secure, legal, and delivered on time.
