Understanding RERA: A Simple Guide for Homebuyers and Investors
Introduction
Whether you are purchasing your dream home or investing in real estate, real estate is one of the biggest financial decisions you will ever make—so how do you ensure it is being safeguarded and clearly defined? This is where RERA (Real Estate Regulatory Authority) comes into play.
The Government of India established RERA to infuse accountability, transparency, and reliability back into the real estate sector. In this guide, Invest N Assets walks you through what RERA is, why it is important, and how it protects you as a buyer or investor.
What is RERA?
The Real Estate (Regulation and Development) Act, 2016, popularly known as RERA, is a historic law governing the real estate industry in India. RERA requires the registration of all real estate projects and agents and introduces standards around transparency and timely delivery of projects.
Why Was RERA Introduced?
Prior to RERA the real estate business was often confronted with:
- Delay in completing projects
- Unjustified price escalations
- False advertising
- No buyer protection
The government established RERA to help homebuyers with these issues and to resolve them by using, fairness in the real estate business, as well as protection to the homes buyers interest.
Key Features of RERA
Mandatory Registration
All residential and commercial (larger-than-average) projects must register under RERA. Developers cannot advertise or sell without a valid RERA registration number.
Disclosure of Project Details
Developers must upload the project plan and timeline, legal documents, and financial statements to the RERA website, which is accessible to buyers and can be verified.
Commitment to On-time Delivery
If the developer fails to deliver possession on time, they are liable to pay interest to the buyer – keeping developers accountable.
Limits on Advance Payments
A builder can’t take more than 10% of the property’s purchase cost as an advance payment before a formal sale agreement is signed.
Buyer-Focused Dispute Resolution
There are RERA authorities that have an efficient grievance settlement structure, allowing buyers to easily complain to RERA.
Benefits of RERA for Homebuyers
- Access to transparent information
- Assurance of timely possession
- Legal recourse in case of breach
- Interest on possession delays
- Right to a refund for contraventions
Why Should Investors Care About RERA
Investors win too! With regulated markets, expected timeframes, and increased builder legitimacy, RERA is there to make your investment safer and reliable.
How to Check RERA Details Before You Buy
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Visit your state’s official RERA website
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Search the developer or project name
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Verify approvals, layout plans, timeline, and complaint history
✅ Tip from Invest N Assets: Always ask for the RERA registration number before committing to any real estate deal.
What If a Builder Is Not RERA Registered?
Purchasing from a builder who is not RERA registred is a situation fraught with risk:
Legal protections afforded to you by RERA are lost
There may or may not be recourse to resolve disputes
There is no guarantee on when the project will actually be completed
Do not take the risk even if the price looks good.
RERA is Not Just Legislation – It Is Your Power
At Invest N Assets we present as an advisory tool that helps prepare the investor and homebuyer, RERA is an important tool for the homebuyer and investor and it is important to your advantage.
Conclusion
Whether you’re a first-time homebuyer or a veteran investor, it’s important to understand RERA in order to protect your best interests in real estate. With this knowledge, you can objectively review projects, interrogate developers, and make educated investment decisions.
Are you ready to make the right investment?
Invest N Assets will be your dependable partner in identifying projects that are RERA Approved, where value added is meant by complete transparency, personalised advice, and expert support.
📞 Contact us to discuss the safest real estate investment options!