RERA Rules And Beyond: Protecting India’s Home Buyers

RERA rules aren't just lines on paper-these are going to be your shield, once you step into the world of real estate.

Someone once said that buying a home in India is an act of faith-you sign the papers, make the payments, and then wait…hoping everything goes as promised.

Buying your first home is one of life's biggest milestones with equal parts of excitement and anxiety. You want everything to work in your favour, but there is so much that could go wrong. So, is the act of buying a home this confusing?

No, and that's exactly why there are RERA rules in place. It works on your behalf so that your faith can turn into something more concrete (and liveable!). RERA compliance ensures real checks, real penalties, and real accountability.

However, as the housing market is evolving, maybe it's time to ask bigger questions-is RERA registration check enough, or do Indian home buyers need stronger safeguards?

Why RERA rules matter?

The Real Estate (Regulation and Development) Act, or RERA Act, came into effect in 2016, and since then, it has been a landmark move to bring order into the fast-growing housing sector in India.

Before this, home buyers had little to almost no protection against developers if they delayed possession, changed layouts, or disappeared mid-project. Imagine the horror, right!

With RERA registration, now mandatory for most projects, buyers finally got a way to verify details, track construction progress, and hold builders accountable in the entire home-buying journey. In short, RERA in real estate made the system more transparent.

What is RERA and why is it important?

A quick refresher on what is RERA-for all those who don't know or remember much!

The RERA Act was designed to:

• Regulate the real estate market and bring transparency for both buyers and builders.
• Protect buyers' interests through clear disclosures and protect them against jargon and real estate terminology.
• Mainly ensure that project completion was timely done and there was fair pricing of projects.

So, if a property gets RERA approved, it means that the project has been registered under the Act and the developer has met all regulatory conditions. This means peace of mind for the buyers and an overall home-buying journey.

So, when you see a "RERA approved project," it's not just a label-it's proof that the project has followed RERA rules.

Key RERA rules every buyer should know

Between site visits, brochures, and endless promises from builders, it's easy to get lost in the details.

But when you know a project is RERA approved, and understand what RERA means in real estate, it becomes possible to make sure your dream home is legally secure. And knowing the basics will save you from a world of stress later.

Let's break down the key RERA rules every home buyer should know:

• Mandatory project registration: Yes, builders must obtain RERA registration before marketing or selling any project undertaken.
• Advance payment cap: No matter what the price of the project is, you cannot be asked to pay more than 10% of the cost before signing the agreement.
• Escrow account rule: RERA rules make it mandatory for 70% of collected funds to stay in a separate bank account for that particular project only.
• Transparency in details: All project information-approvals, layouts, and timelines-must be available on the official RERA portal for public view.
• Compensation for delay: If, for any reason, there is a delay in possession, the builder must pay interest or penalties as applicable.

You can easily perform a RERA registration check online through your state's official portal-for example, RERA Assam for projects in the North East.

How has RERA empowered home buyers?

Thanks to mandatory RERA compliance, buyers have had access to RERA-registered projects-where everything is documented and monitored. Especially for first-time home buyers, this meant a big blessing, as it helped rebuild trust between developers and customers. More and more people felt comfortable buying homes because RERA-approved homes meant feeling more confident about investing in a home.

Some of the biggest first-home-buyer benefits under RERA include:

• Legal protection against any kind of fraudulent practices
• Transparency in project progress and builder history making buying a home more flexible
• A designated platform for grievance and resolution through RERA complaint portals

The RERA certificate that came along with your property became like a "trust badge", confirming that your builder has met the necessary compliance and your investment is safer.

Looking for RERA-registered projects in Guwahati? Click here to learn more.

Read me: How RERA Assam Protects Flat Buyers in Guwahati

Where RERA rules fall short?'

For all the good that RERA checks have brought in place, it cannot be said that it's flawless. On paper, the RERA Act promises transparency, accountability, and protection, but in reality, there are gaps that often show up when buyers need help the most.

For instance, not every state has an even implementation of RERA. While some states have active authorities following RERA rules, there are buyers elsewhere who struggle with delays and a lack of follow-up. Many RERA-registered projects still face construction hold-ups, leaving buyers waiting for years despite the law's clear timelines.

Then there are some builders who manage to sidestep strict penalties through technical loopholes or weak state monitoring. On top of that, there are many smaller towns and cities, where awareness about what "RERA approved" means is still limited. Buyers here often sign agreements without checking a project's RERA registration or verifying details through a RERA check, because they don't understand RERA rules completely.

RERA was definitely a big step forward, no doubt, but for it to truly protect every home buyer, the system needs a more concrete structure. After all, the rules work best when the people they are meant to protect completely benefit from them.

Only sell homes once they are built! Bold proposal or only a dream?

In The Federal's opinion piece titled, " How to protect home buyers? Stop sale of homes before they are built",  journalist TK Arun suggests a radical yet logical solution-banning pre-sales of homes.

The issue of "stalled construction" is a growing concern in India, and first-time home buyers (and old) end up bearing an uncertain financial burden. Arun suggests that if buyers only pay once their home is ready, then they can avoid paying the double burden of rent + EMI.

This move, if implemented, could transform how Indian real estate works. It would mean that buyers would invest in something more real, not just a floor plan and a dream. Financially, this would give home buyers the protection against delayed possession, stalled developments, or even cases where the builder runs out of funds midway.

For developers, such a RERA rule could feel like both a challenge and an opportunity. Traditionally, under-construction sales help builders fund their projects through buyer advances, and a tighter financial landscape could create a few initial-level struggles. However, in the long run, such a system could rebuild trust in the real estate market.

So, what can be done next?

The future: Strengthening buyer protection beyond RERA

Well, whether the pre-sale of homes gets banned or not, there are quite a few things India could do to protect its home buyers. As home buying evolves and projects get more complex, it's time to look beyond RERA compliance and think deeper.

Here are a few new RERA rules that could be implemented:

• Centralised monitoring: Perhaps, a unified national RERA dashboard can be created to track progress across all states.
• AI-powered fraud detection: AI tools can be developed to scan fake listings or delayed projects, creating more transparency.
• Financial literacy drives: Especially for first-time home buyers, so that they understand what RERA-approved means and how to protect themselves.

The RERA Act has given Indian real estate something it lacked for decades-transparency. It may not be perfect at the moment, but with more defined (and loophole-free) RERA rules coming in, India's property market can turn into the world's most trusted one.

Click here to check the Assam RERA Act.

Quick checklist for what buyers can do right now

• Always check if your project is RERA approved-visit your state's portal (like RERA Assam) for verification.
• Download and keep a copy of the RERA certificate.
• Use the RERA registration check tools before paying any advance.
• Talk to other buyers on forums for reviews of RERA-registered projects.
• Never invest in a property that doesn't show RERA compliance details clearly.

Imagine a future where buyers can track a project's progress in real time, where complaints are resolved in weeks (not months), and where every builder's credibility is as easy to check as their brochure.

Connect now to explore residential properties in Guwahati following RERA rules.

FAQs

1. What is RERA in real estate?

RERA stands for the Real Estate (Regulation and Development) Act, and it was enacted in 2016. It was introduced to bring transparency and fairness to India's property market, ensuring that buyers get what they're promised-on time and without hidden surprises.

2. What does RERA approved mean?

When a project is RERA approved, it means the builder has registered it under the respective state's RERA authority, provided all legal documents, and agreed to follow the rules.

3. How can I check RERA registration?

You can do a RERA registration check by visiting your state's official RERA website (for example, RERA Assam for Assam projects). There, you can look up RERA-registered projects using the builder's name, project name, or registration number.

4. What is a RERA certificate?

A RERA certificate is proof that a project is registered with the state RERA authority. Builders must display it prominently in their marketing materials and at the project site.

5. What can buyers do if a builder doesn't follow RERA rules?

If a builder violates RERA compliance, buyers can file a complaint directly on their state RERA portal. The authority can impose fines, revoke registration, or even order refunds.