Indian Real Estate

The RERA act and its benefits to HomeBuyers


21, January 2026

RERA that stands for Real Estate Regulation Authority announced the RERA act to be implemented by 1 May 2017.

The RERA Act doles out norms and regulations for the real estate market that must be followed by both Real Estate Developers and Buyers for both commercial as well as residential projects.

Looking to bring in Transparency and Accountability to the real estate and a widespread standardization of rules, it calls for timely delivery of construction projects and foolproof protection to buyers.

It is aimed at relieving the plight caused to home buyers by the malpractices of unfair builders, by providing them certain rights that safeguard them from being cheated on by developers.

It must not be forgotten a positive environment forms for the developers as well with the consumers gaining confidence on the developers due to this act.

The RERA Act also states that each state of this country must set up its own Real Estate Authority and Appellate Tribunal to address the grievances of aggrieved buyers in the case of any wrongdoing by the developers.

With strict penalties in place for developers in case of violation, the RERA act has brought a certain responsibility in the Indian Real estate Market which has been exhibited in the rise of business volumes that were seen since its introduction.

Documents required for registration under RERA :

Following documents should be enclosed in hardcopy with the application:

  • PAN Card of the builder

  • ITR of last 3 years and the balance sheet of the builder

  • The builder must clarify about the apartment (carpet area, number of floors, parking space)

  • Declaration by the builder of having legal title of the land with proof

  • Details of the land (rights, title, mortgage)

  • If the builder is not the owner of the land, the consent letter of the actual owner with documents will be required

  • Details of the project (location, sanctioned plan, layout plan)

  • Ownership documents (proforma of allotment letter, agreement of sale)

  • Information of the persons involved (Architects, Engineers and others)

Benefits of RERA Act for Buyers:

RERA Act 2017 implements equal rights for both developers and home buyers. Real estate investment in any region has to under the authorization of the Real Estate Regulatory Act. Weather it is residential real estate or commercial real estate, the lender or real estate agent has to register the project under RERA Act. Offering real estate benefits to home buyers has always been the primary goal of RERA act. The home buyer must be offered complete transparency on terms of selling or lending a real estate project.

There are a range of benefits of RERA Acts implemented for the home buyers, and some among them are as follows:

1. Complete transparency:

The lender or the realtor may conceal the property details including the property dimensions, which involves, both super built-up are and carpet area. A carpet area is what we call a livable area, which includes, bedroom, living room, kitchen, bathroom and so on. And a super built-up area is the saleable area, which includes the whole carpet area and the area including the walls and other non-livable area in a unit. So, simply saying the realtor can confuse you with the carpet and super-built-up area and sell the property with the super built-up area and ask you to pay the that doesn't mention the whole carpet area. The key benefits of RERA Act is that, according to the Act a realtor is lawfully forced to disclose the all documents regarding the area of the unit before commencing any selling of a property.

2. Carpet Area Standardized:

Due to lack of uniformity in the calculation of carpet area, this act has firstly defined the formula for calculation of carpet area to be adopted by all builders and developers. This is a major benefit for buyers as the cost of a property is calculated based on this.

Cost of Property = Carpet Area x Rate per Sq. ft.

Earlier it was seen that a lot of developers would portray the carpet area falsely in order to hike the price of the flat which is not possible now.

3. On Defaulting, the rate of interest to be paid the same for both parties:

In the case of defaulting on payments & possession by the buyer and the seller, the rate of interest shall be the same for both. Yet another benefit for the buyers is that the developers who used to charge more interest to buyers on defaulting payments would now be charged with the same rate of interest in case of defaulting on possession date by them.

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4. Reduces Risk of Builder Insolvency/ Bankruptcy:

Especially in the case of big developers who are involved in multiple projects at the same time, it is now mandatory to deposit 70% of the amount realized in construction costs in a separate bank account which can be used for that project only and can be withdrawn only on completion after being certified by concerned authorities, benefiting the buyers and offering them the safe on the money they invest on a unit.

5. Rights of Buyer in case of False promises:

According to the RERA Act, when the commitments given by a builder are not met the buyers are offered the benefits for a full refund of the advance amount or any amount that was paid along with interest. Also, they will be allowed to claim compensation for their grievances.

6. Advance Payment:

Another feature of RERA Act that benefits the home buyers are, an advance amount or any applicable fees that are collected towards a property must not be more than 10% of the cost of the house and must be collected only after an agreement of sale has been executed between the buyer and the seller.

7 . Rights of Buyer in case of defects found after possession:

After a buyer has possessed property in case any defects have been found within 5 years of their possession, the builder is liable to bear all the expenses for repair of it and do so within 30 days, commensed ccording to the RERA Act benefiting the buyers.

8. Rights of Buyer in case of Delay in possession:

Another benefits of RERA Acts is that, in case of delay in completion or possession, the buyer can either withdraw from the project in which case he is entitled to a full refund or continue with the project till completion and collect the interest for the period of delay by the developer.

9. Rights of Buyer in case of Defect in Title:

Acording to the RERA Act 2017, once a buyer has possessed the property and in case defects in the title have been discovered the buyer is eligible to claim compensation with no time limit on the discovery, which is one of the key beneficiary for the home buyers.

10. Right to Information:

Gone are the times when the buyer would have limited info on the house, with this reform coming in the Buyer is entitled to know all information on the project right from title deeds to the time of completion, anothet benefits of RERA Act for the home buyer, helping them with the complete dislosure with property they buy.

11. Grievance Redressal:

If the buyer, the promoter, or the agent has any complaints with respect to the project, they can file a complaint with RERA. If they aren’t pleased with RERA’s decision, a complaint can also be filed with the Appellate Tribunal. Accoording to the RERA Act, this is eaquality benefiting the buyers and the realtors.

12. Reduced Litigation:

One of the most notable advantages of RERA for homebuyers is a more efficient dispute resolution process. Prior to RERA's inception, disputes between buyers and developers frequently resulted in lengthy and costly court fights. This approach imposed a considerable strain on homebuyers, depleting financial resources and resulting in unnecessary delays. RERA solves this issue by creating a fast-track procedure exclusively for real estate disputes. This approach allows concerns to be heard and assessed by industry experts, resulting in faster remedies and reducing the need for traditional litigation. This not only lessens the financial burden on homebuyers, but it also promotes more effective and fast dispute resolution, encouraging a more amicable climate within the real estate industry.

13. Project Information Accessibility:

Prior to RERA's implementation, accessing crucial project details often resembled navigating a labyrinth. Prospective buyers were subjected to a tedious process of acquiring information, with details scattered across various sources and potential for misrepresentation. Fortunately, RERA mandates a paradigm shift towards transparency. Developers are now legally obligated to make a comprehensive set of project details readily available to the public, both online and offline. This includes essential information such as approved plans, carpet area calculations, completion timelines, and legal clearances. This easy accessibility empowers informed decision-making for homebuyers. By fostering a culture of transparency, RERA ensures that buyers enter into property transactions with a clear understanding of the project's specifications and potential investment.

14. Improved Project Quality:

The Real Estate Regulation and Development Act (RERA) stresses on providing high-quality construction projects to homebuyers. This is accomplished through a two-pronged approach: enforcing compliance with set project schedules and holding developers accountable for the ultimate quality of construction. RERA avoids delays that can sometimes result in compromised material utilization or hasty craftsmanship by requiring developers to adhere to specified completion timeframes. Furthermore, the Act requires developers to fix any structural faults discovered within a certain term once possession is given. This assures that purchasers receive not just on-time completion of their properties, but also residences built with correct materials and competent construction procedures, protecting their investment for years.

15. Increased Market Stability:

Prior to RERA's adoption, India's real estate industry was subject to volatility and uncertainty due to a lack of regulation. This frequently resulted in buyer anxiety and unwillingness to invest. However, RERA works as a stabilizing force by establishing a set of explicit norms and regulations for developers. These restrictions not only protect homebuyers, but also provide an even playing field in the business. RERA promotes trust between buyers and developers through enhanced openness and responsibility, paving the way for a more predictable and stable real estate market. This consistency benefits all players, as purchasers gain confidence in their investments and developers work under a defined structure that reduces potential disruptions. Ultimately, RERA contributes to the long-term health and sustainability of the real estate sector in India.

16. Single-window Clearance:

One of the most significant benefits of RERA for homebuyers is the expedited approval process. Prior to RERA, gaining relevant clearances for a real estate project was typically a complicated trek through different government departments. This resulted in not just delays and frustration for developers, but also uncertainty for customers. RERA adopts the notion of single-window clearance, which establishes a centralized authority responsible for giving all necessary project clearances. This eliminates the need for developers to navigate a complex bureaucracy, speeding up the process and ensuring timely project completion. As a result, homebuyers benefit from more transparency and predictability about project timetables and handover dates.

Exemptions From RERA

Certain projects are exempt from the RERA Act regulations and those are mentioned below:

• For a project, whose Proposed area of land to be developed is more than 500 square meters or the number of apartments is exceeding 8.

• A project that received a certificate of completion before the introduction of RERA.

• For scenarios where existing projects are being renovated, repaired or redeveloped not new projects.

Rera is mandatory if you are a builder in india.

Homes247.in Experts View:

As per latest Indian Real Estate trends, The RERA act which has already been encouraging speedy, transparent and smooth developments in Real estate for the past 2 years, has been the biggest boon to the Home buyers in India.

Coming from times when Home Buyers were fooled by developers and cheated of their wealth to now, where all factors involved in the home buying process are brought under the RERA act, the RERA act ensures honest business.

We at Homes247.inare of the opinion that when the government and authorities have implemented such an important initiative to cleanse the real estate market, buyers must take full advantage of this as there has never been a better time to invest in Indian Real estate than now.

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