Introduction
Buying a home is one of the most important decisions in a person’s life. However, delays in possession, misleading promises, and lack of transparency by builders were common problems faced by home buyers. To address these issues, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA.
What is RERA?
RERA is a law enacted to regulate the real estate sector and protect the interests of home buyers. Each state has its own regulatory authority, such as MahaRERA in Maharashtra.
The main objective of RERA is to bring transparency, accountability, and fairness in real estate transactions.
How Does RERA Protect Home Buyers?
1. Mandatory Project Registration
Builders must register their real estate projects with RERA before advertising or selling. This ensures that only approved and verified projects are offered to buyers.
2. Transparency in Project Information
Builders are required to disclose:
Project layout and approvals
Timeline for completion
Carpet area details
Status of construction
This information is available on the RERA website for public access.
3. Protection Against Delay in Possession
If a builder fails to give possession on time, the buyer has the right to:
Withdraw from the project and claim a refund with interest, or
Continue with the project and receive interest for delay
4. Separate Bank Account for Project Funds
Builders must deposit 70% of the project funds in a separate bank account. This prevents misuse of money collected from buyers.
5. Grievance Redressal Mechanism
Home buyers can file complaints before RERA for issues such as:
Delay in possession
False promises
Structural defects
Violation of agreement terms
Conclusion
RERA has significantly strengthened the rights of home buyers by ensuring transparency and accountability in real estate transactions. Before purchasing any property, buyers should always check whether the project is registered under RERA.
DISCLAIMER :
This article is for informational and educational purposes only and does not constitute legal advice or solicitation. Reading this article does not create an advocate–client relationship.