Introduction
RERA is a hot topic in Indian real estate but most people who buy property don't really understand it. A lot of people think it applies to every project, makes sure things get done, or protects against all risks. RERA is a set of rules that has a clear scope, and the rewards of a project depend on how and where it fits within that framework.
People who want to buy things often get confused by contradictory internet advice and imprecise information shared without context. This could lead to incorrect assumptions during the shortlisting, booking, or negotiating phases. Before you make any financial commitments, you need to know precisely what RERA covers.
On our blog, we've put together a list of the most common and essential questions buyers have about RERA. It explains how the law works, when it applies, and why the level of protection it offers varies depending on the type, size, status, and location of the project.
What is RERA and why was it introduced in India?
RERA is a law that governs real estate in India. Its goal is to make property transactions safer for buyers. It was put in place to reduce delays and false project claims that help buyers to make better choices about property.
When was RERA introduced and when did it come into force?
RERA was introduced in India in 2016 to regulate the real estate market and provide buyers greater protection. Its principal provisions were adequate on May 1, 2017, when relevant projects were required to follow registration.
Why is RERA important for property buyers?
RERA is essential because it makes information accessible by ensuring that developers' readily scheduled and project-specific information is available before buyers put down money. It also makes people more responsible and gives purchasers a straightforward way to complain about delays.
Is RERA mandatory for all real estate projects?
No, RERA is not required for every real estate project. It can only be used on projects of a specific size and in a specified location. Some resale transactions and finished developments with appropriate certificates may not need to be registered with RERA.
When is RERA applicable and when is it not applicable?
RERA applies to new residential projects that are still underway but don't have completion certificates in the areas where they have been notified. It usually doesn't apply to modest projects that are below specific restrictions.
What is RERA registration and what does it signify for buyers?
RERA registration signifies a project that has been officially registered with the government after providing information on approvals.
What is a RERA certificate and why does it matter?
Once a project achieves all the essential disclosure and compliance standards, the authority issues an RERA certificate as proof of registration. For buyers, it means that every individual can see the project's specifics and that the developer has to follow a well-known set of regulations.
How does RERA protect property buyers?
RERA protects buyers by requiring explicit project disclosures and setting schedules. It also makes people responsible by having regulators keep an eye on things and it gives buyers a formal way to protest if there are delays.
Is RERA approval mandatory for flats and apartments?
If a developer is selling apartments that are still under construction, they must obtain RERA permission if the project meets the size and location requirements. RERA doesn't cover ready-to-move or resale units because it only governs developments, not private property sales.
Is RERA applicable to plot and land developments?
Yes, RERA applies to plotted developments when a developer offers more than one plot as part of a planned project that exceeds size requirements. Individual property sales are often not covered because they are considered private transfers rather than development projects.
Does RERA apply to commercial real estate projects?
Yes, RERA can be used for commercial properties like multi-use developments if they are larger than the defined area. Registration allows buyers and investors access to the same schedules and rules as residential projects.
Is RERA applicable in gram panchayat or rural areas?
RERA can be used in Gram Panchayats or rural areas if the state government has publicly stated that those areas have regulatory power over them. It depends on state notification and planning authority control not just whether the area is called rural or urban.
What happens if a project is not RERA registered?
If a project isn't registered with RERA, buyers may not receive as much information and may not be as protected by the law in the event of delays. In these situations, buyers need to undertake additional independent document checks and complete research before paying.
Can RERA timelines or project completion dates be extended?
Yes, RERA deadlines can be pushed back in some cases, which makes construction take longer than the developer can control. Extensions need to be approved by the authorities and buyers must be told about the new timescales in writing.
What should buyers verify before booking a RERA-registered project?
Buyers should check that the schedules and land ownership details are correct, and that the project information matches what is stated in the advertising and booking documents. They should also review the payment schedules and terms of the selling agreement to ensure everything is clear before they agree to pay.
