Don't Buy a Home Without Checking This: A Homebuyer's Guide to RERA

RERA Approval

What Every Homebuyer Should Know Before Buying

What is RERA?

RERA is short for the Real Estate (Regulation and Development) Act, 2016, a central law that came into effect on May 1, 2016. Each state set up its own regulatory authority to enforce it locally. Karnataka has K-RERA, Maharashtra has MahaRERA, Tamil Nadu has TNRERA, and so on.

Before this law existed, buyers had almost no real protection. Projects dragged on for years past their promised dates, money collected for one project sometimes ended up funding a completely different one, and there was no real way to check if a builder's claims were even true. RERA came in specifically to close these gaps.

How Does RERA Actually Work?

In practice, RERA makes it illegal for a builder to advertise, market, or sell a unit before the project is registered. The process looks roughly like this:

Registration: The builder submits the project to the state RERA authority, along with land ownership documents, approved plans, timelines, and financial details.

Review: The authority checks everything and has 30 days to either approve or reject the application.

Public listing: Approved projects get a registration number that has to appear on every ad and brochure, and the project shows up on the RERA portal for anyone to look up.

Ongoing compliance: This isn't a one-and-done process. Builders have to post quarterly construction updates, and any changes to the sanctioned plan need approval first.

On What Basis Do Builders Get RERA Approval?

Approval isn't automatic just because a builder applies. A few things have to be in order:

Project size: Registration is mandatory once a project crosses 500 square metres or has more than eight apartments, counting all phases.

Clean land title: Proof of ownership and legal clearance that the land isn't under dispute.

Sanctioned plans: Building plans and layouts approved by the local municipal or planning authority.

Financial transparency: Cost estimates, funding sources, and a commitment to keep 70% of buyer payments in a separate escrow account meant only for that project's land and construction costs.

Track record: Builders often have to disclose their past projects and completion history so the authority can judge their credibility.

Only once all of this holds up does a project actually get its RERA number.

Why Does This Matter for a Buyer?

You can check for yourself. The RERA portal lets you verify land title, approvals, and timelines instead of taking the sales pitch at face value.

Your money is harder to misuse. With 70% of collected funds locked into that project's own account, there's much less room for it to get diverted elsewhere.

Delays actually cost the builder something. Miss the declared possession date, and the builder owes compensation or interest.

The plan can't quietly change. Layout, specs, or amenities can't be altered after sale without buyer sign-off.

Defects are the builder's problem for five years. Structural or quality issues found within five years of possession have to be fixed at no cost to you.

There's an actual complaint process. You can go to the state RERA authority or the Appellate Tribunal instead of dragging a builder to civil court.

Before you shortlist a property, look up its RERA number on the state portal. If it doesn't show up, or the builder can't produce one, that's worth pausing on.

RERA approval means the project's claims are backed by something beyond the builder's word.