Investing in real estate is one of the most effective ways to build long-term wealth, but it comes with risks, especially when developers delay projects or provide poor-quality construction. To protect homebuyers and ensure transparency, the Real Estate (Regulation and Development) Act (RERA) was introduced in 2016. But why is RERA registration important? The purpose of the RERA Act is to safeguard buyers, enforce accountability among builders, and promote fair practices in the real estate sector.
Before RERA, homebuyers often faced issues like project delays, fraud, and misleading advertisements. Now, developers must register their projects with RERA before advertising or selling, ensuring legal compliance and financial discipline. In this blog, we’ll explore the importance of RERA registration, how it benefits homebuyers, and why choosing a RERA-approved project is crucial for a secure real estate investment.
What is the Purpose of the RERA Act?
The RERA Act was established to:
Protect Homebuyers: Prevent fraud, delays, and unfair practices.
Increase Transparency: Mandate builders to disclose project details, approvals, and timelines.
Ensure Timely Delivery: Hold developers accountable for project completion.
Standardize Real Estate Transactions: Provide a legal framework for disputes and refunds.
By requiring developers to register projects with RERA, the law ensures that only credible builders with proper approvals can sell properties.
Why is RERA Registration Important for Homebuyers?
1. Legal Security & Reduced Fraud
Before RERA, many buyers lost money in fraudulent or stalled projects.
Now, RERA-registered projects must provide accurate details, reducing scams.
Developers must deposit 70% of funds in a separate account, preventing fund diversion.
2. Guaranteed Project Completion
Builders must follow strict timelines or face penalties.
If a project is delayed, buyers can claim a full refund with interest.
3. Transparent Pricing & No Hidden Costs
Developers cannot increase prices after booking without valid reasons.
All charges (maintenance, parking, etc.) must be disclosed upfront.
4. Better Construction Quality
Builders are liable for structural defects for 5 years after possession.
Buyers can demand repairs or compensation for poor construction.
5. Faster Dispute Resolution
RERA authorities resolve complaints within 60 days, avoiding lengthy court cases.
Homebuyers can file grievances online through state RERA portals.
How Does RERA Impact Developers?
While RERA benefits buyers, it also imposes strict rules on builders:
✅ Mandatory Project Registration: No pre-launches without RERA approval.
✅ Financial Discipline: 70% of funds must be used only for construction.
✅ Penalties for Delays: Heavy fines or license cancellation for violations.
This ensures that only serious and financially stable developers survive, improving industry standards.
How to Verify RERA Registration Before Buying?
Check the RERA website: every state has a portal listing approved projects.
Ask for RERA number: legitimate builders display it in ads and brochures.
Review Project Details: Verify approvals, layout plans, and completion timelines.
Conclusion: Always Choose RERA-Approved Projects
Understanding why RERA registration is important helps buyers avoid risks and invest confidently. The purpose of the RERA Act is to create a fair, transparent, and buyer-friendly real estate market.
Before purchasing a property, always check RERA compliance to ensure legal security, timely delivery, and quality construction. Partnering with a RERA-registered builder is the best way to safeguard your investment and enjoy a hassle-free home-buying experience.