Buying a flat or plot in India used to be full of risk — delayed projects, hidden charges, and no accountability. The Real Estate (Regulation and Development) Act, 2016 (RERA) changed that. Here is what every home buyer must know.
What Is RERA?
RERA is a central law that regulates the real estate sector. Each state has its own RERA authority that registers projects and resolves disputes. MahaRERA (Maharashtra), DelhiRERA, and HRERA (Haryana) are some of the most active authorities.
Key Rights RERA Gives Home Buyers
- Mandatory registration – All residential projects above 500 sq. metres or 8 units must be registered before sale begins.
- No changes without consent – Builders cannot alter the approved plan without written consent of two-thirds of buyers.
- Escrow account – 70% of the money collected from buyers must be kept in a separate account and used only for that project.
- Possession date in agreement – The agreement must clearly state when possession will be given.
- Compensation for delay – If the builder delays possession, you are entitled to interest at the SBI MCLR rate (or as per agreement, whichever is higher) for every month of delay.
How to Check If a Project Is RERA Registered
Visit your state’s RERA website and search by project name or registration number. Always verify registration before paying any booking amount.
What Can You Complain About?
You can file a RERA complaint for:
- Possession delay beyond agreed date
- Defects in construction within 5 years of possession
- Deviations from approved plans
- Misrepresentation in brochures or advertisements
- Unfair terms in the agreement
How to File a RERA Complaint
Most state RERA websites have online portals. You file a complaint, pay a small fee, and submit your documents (agreement, payment receipts, correspondence). The authority passes orders typically within 60 days.
Can You Get a Refund?
Yes. If the builder fails to give possession by the agreed date, you can claim a full refund with interest. The RERA authority can also direct refunds in cases of structural defects or title disputes.
Consult an Advocate
RERA proceedings are simpler than civil courts but still require proper documentation and legal arguments. A real estate advocate familiar with RERA can significantly improve your chances of a favourable order.