How RERA Protects You: A Quick Guide for Homebuyers

Purchasing a home is one of the largest milestones in life. It’s not only a money decision. It’s emotional, deeply personal, and usually full of hope, dreams, and, yes, a little fear as well.

For years, Indian home buyers were at the mercy of delays, unseen expenses, and a lack of transparency that left them helpless. Developers used to have the leverage, and legal recourse for buyers was limited. That’s where RERA: Real Estate (Regulation and Development) Act, 2016 came in.

If you are a buyer looking for a new home, here’s why RERA is important to you and how it protects your hard-earned money.

1. No More Project Delays Without Penalty

Delay in possession has been one of the largest nightmares for Indian homebuyers. RERA now makes builders responsible by requiring all registered projects to announce a possession date. If they don’t deliver on time, they’re legally obligated to pay you for the delay.

How this benefits you: You can budget your finances, rent, and move with more assurance. You won’t be kept waiting for years on end, wondering when you’ll finally receive the keys.

2. Advance Payments Are Limited

Prior to RERA, some developers used to ask for huge amounts as an advance, sometimes 50% or even more, without giving any indication of where the project stood. Today, developers cannot request more than 10% of the property price as an advance prior to signing the agreement.

It provides you with time to check documents, review project approvals, and close the deal with a clear mind not under duress.

3. Clear Project Details at Your Disposal

Developers are required to register their projects and make complete disclosures: land titles, layout plans, approvals, timelines, and even historical track records on the state’s official RERA portal. What does this mean for you? You get access to verified, government-approved information. No more relying solely on glossy brochures or sales talk.

4. Your Money Is Protected

RERA mandates that builders deposit 70% of the project funds collected from buyers into a separate escrow account. This money can only be used for that specific project, not for other business interests or ventures.

Result? Your money is going into constructing your home, not paying for a new showroom, office, or advertising campaign elsewhere.

5. You Can Hold Builders Accountable

If there are defective structures or shoddy workmanship within five years of occupation, the builder has to rectify them at no additional cost to you.

You no longer need to run around, plead, or pay extra just because something is not right in construction.

6. Settlement of Disputes Becomes Smoother

RERA has created appellate tribunals and authorities to settle disputes in a smooth way. That’s to say, you don’t have to go through years of court proceedings to get justice.

Why it’s important: You now have a platform that listens and acts within a reasonable time.

RERA: Empowered Buyers Make Better Choices

RERA might not fix all real estate ills in one night, but it has revolutionized the scene in a major way. It empowers buyers, brings clarity, and above all, trust.

So the next time you’re checking out a new home, don’t just fall for the view or the price tag. Ask the builder:

“Is this RERA registered?”

It might be the most crucial question you ever ask.

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