What is the impact of RERA on property buyers?

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation that has fundamentally transformed the Indian real estate sector in favour of homebuyers. Prior to RERA, buyers had little protection against project delays, misleading advertisements, diversion of funds, and arbitrary changes to project specifications.

Key Protections for Buyers Under RERA

• Project registration: All residential projects above 500 sq. mt. or 8 units must be registered with state RERA authority.
• Carpet area transparency: Sale must be based on carpet area (actual usable area), not super built-up area.
• 70% fund escrow: Developers must deposit 70% of project collections in a dedicated escrow account — preventing fund diversion.
• Completion timeline: Developers must declare and commit to project completion dates.
• Penalty for delays: Buyers entitled to interest on paid amounts for every month of delay.
• Defect liability: 5-year structural defect liability on the developer post-possession.

Dispute Resolution

• RERA Authority in each state handles buyer complaints.
• Adjudicating Officer resolves compensation claims.
• RERA Appellate Tribunal for second-level appeal.
• Complaints must be resolved within 60 days.

RERA has been one of the most impactful real estate reforms in India's history, shifting power toward buyers and creating a framework for accountability. Its full potential will be realised as state-level enforcement strengthens and the legacy of stuck pre-RERA projects is resolved.