RERA Act: What Every Buyer Must Know Before Booking a Property

For decades, Indian homebuyers have faced an unregulated real estate market where builders could delay possession, alter plans, or even disappear with investors’ money. The Real Estate (Regulation and Development) Act, popularly known as RERA, came into effect in 2016 to address this imbalance. The Act empowers buyers, ensures builder accountability, and promotes fair practices. However, many potential homeowners remain unaware of the protection it offers. This article aims to create awareness about the key provisions of RERA and guide buyers through the dos and don’ts of booking property in today’s legal landscape.

Understanding RERA and Its Purpose

RERA was enacted to regulate the real estate sector, promote transparency, and protect consumer interests. It mandates the registration of real estate projects above a certain size with the State RERA authority. Builders must disclose essential project details, adhere to timelines, and deliver what they promise. Each state and union territory has its own RERA website, where buyers can verify project and builder credentials.

Key Rights Every Buyer Should Know

Under RERA, buyers are entitled to full disclosure of project details, including sanctioned plans, land titles, completion schedules, and ongoing litigation if any. The builder cannot make changes to the layout or project plan without the buyer’s written consent. One of the most important features of RERA is that it limits the advance payment a builder can demand no more than 10 percent of the property’s cost before a registered agreement is signed.

Timely possession is a legally enforceable right. If a builder fails to hand over the property within the promised timeframe, the buyer can claim a refund with interest or choose to wait with compensation. Further, if the buyer detects structural or workmanship defects within five years of possession, the builder is bound to rectify them free of cost within 30 days of complaint.

Why RERA Registration Matters

Booking a non-RERA registered property is highly risky. RERA-registered projects are bound by strict guidelines. Builders are required to deposit 70 percent of buyer payments into an escrow account, which ensures that the funds are used only for the project concerned. This provision alone has significantly reduced the diversion of funds and project abandonment. Moreover, buyers have access to quick grievance redressal through the RERA authority and appellate tribunal in their state.

Dos and Don’ts for a Responsible Buyer

Do verify the project’s RERA registration number on the official state portal. Do insist on a written agreement before paying more than 10 percent. Do review all promised specifications and ensure they match the RERA disclosures. Always retain written communication with the builder and avoid verbal agreements.

Don’t be swayed by glossy brochures or sales talk. Don’t pay in cash or deal with unregistered brokers. Don’t overlook the penalty clause in the agreement or delay in reporting issues like construction defects. Don’t assume that all projects are RERA compliant - cross-check the registration status online before making any financial commitment.

How to File a Complaint under RERA

If your rights are violated, RERA allows you to file an online complaint directly with the state authority. Most complaints are addressed within 60 days. In case you are not satisfied with the decision, you can approach the RERA Appellate Tribunal or even the High Court, making it a structured and accessible legal route for aggrieved buyers.

Conclusion

The RERA Act has introduced a new era of transparency and consumer protection in Indian real estate. But legislation is only effective when people are aware of it and use it wisely. As a homebuyer, knowing your rights is not optional-it is essential. Before booking a property, verify every claim, document your transactions, and choose only RERA-registered projects. In the real estate journey, being informed is the first step towards being secure.

Do consult NavDrishti Group as it helps by providing comprehensive solutions across insurance, real estate, financial services, lifestyle media, and career opportunities, aimed at helping individuals and families achieve financial security, personal growth, and overall well‑being.