Buying real estate comes with a mix of thrill and caution, especially for luxury buyers and high-net-worth investors. The Indian government introduced the Real Estate Regulatory Authority (RERA) to protect the interests of investors and ensure transparency.
RERA-approved projects are those registered under the RERA Act 2016, requiring developers to adhere to strict norms of transparency, accountability, and quality. For buyers, this means legal assurance and trust in their investment.
Let’s explore how RERA benefits homebuyers, particularly in the luxury segment, and why it has become a hallmark of trust in real estate investments.
What is RERA?
The Real Estate Regulatory Authority (RERA) was set up under the RERA Act 2016 to address pending issues in the real estate sector like delays, hidden costs and lack of transparency. RERA is a regulatory framework that protects buyers’ interests. It makes developers accountable in a buyer-centric market.
Buyers’ Interests
RERA gives accurate and reliable information about real estate projects. Developers are legally bound to deliver projects on time and as per the quality and specifications promised so that buyers get what they were promised without compromise.
Transparency
Transparency is the core of RERA. Developers must disclose all critical information about the project. It includes construction progress, timelines, approvals and financials. This level of transparency enables buyers to make informed decisions and eliminates the scope of malpractices.
On-Time Delivery
One of the most important provisions of RERA is the on-time delivery. Developers must adhere to the timelines, if not buyers are entitled to compensation. This reduces the uncertainty in real estate investments and builds trust between developers and buyers.
Standardisation of Real Estate
RERA brings uniformity in real estate transactions by standardising critical parameters like the definition of “carpet area” which means the actual usable area of the property. This eliminates the scope of disputes and buyers know exactly what they are paying for.
Read Also: The Hidden Costs of Purchasing a Luxury Apartment: What You Need to Know
What Does RERA Approved Mean?
When a property or project is RERA-approved, it complies with the rules and regulations mentioned in the RERA Act. This approval guarantees that the project has transparency, accountability and quality.
RERA Registration
A project can be RERA approved only if the developer registers the project with the state RERA authority before advertising, selling or promoting the property. This registration ensures that only genuine projects are available to buyers and reduces the scope of fraud.
RERA Compliances
A RERA project follows the rules of this act, including transparency in project progress, timelines and finances. Developers must use at least 70% of the money collected from the buyers for construction purposes and not divert it to other projects or expenses.
Legal Protection for the Buyer
The RERA project provides strong legal cover to the buyer. If developers fail to meet the deadlines or deliver substandard quality, the buyer can claim compensation or a refund.
Read Also: Top Factors to Consider When Selecting a Neighbourhood for Your High-End Residence
Benefits of Buying RERA-Approved Properties
Buying a RERA-approved property has numerous benefits that bring security, transparency and reliability to the buyer. These benefits have changed the real estate landscape, making it more buyer-friendly and trustworthy.
Project Details
When you buy a RERA-approved property, you get clear and detailed information about the project. This includes the total cost of the property, approved layouts, legal clearances and construction timelines. The transparency eliminates hidden costs and you are fully informed before you decide.
Protection from Frauds
RERA-approved projects are held to high accountability standards, so developers can’t indulge in unfair practices. Buyers are protected from issues like false claims about amenities, carpet area disputes and illegal constructions, so buying is secure and trustworthy.
Grievance Redressal
RERA provides a platform to resolve disputes between buyers and developers. Buyers can file complaints with the RERA authority if developers don’t meet their obligations. The mechanism ensures that the grievances are addressed quickly and the buyer has a reliable way to get justice.
Quality Assurance
RERA ensures that the buyer gets the promised quality of construction. Developers have to follow the approved plans and specifications. Any structural defects found in 5 years of possession must be rectified by the developer so the buyer has long-term quality assurance of the property.
How to Check if a Property is RERA Approved
Verifying a property is RERA-approved is an essential part of a secure real estate investment. And it’s simple and can be done online through state-specific RERA portals.
Visit the State-Specific RERA Portal
Each state in India has its own RERA website where buyers can verify the project registration. For example, Maharashtra has MahaRERA, and Haryana has H-RERA.
Verify Key Details
Once the project is found on the portal, check all the details. Registration status, completion timelines, legal approvals, compliance history etc. Make sure all is in order.
Check the RERA Certificate
Check the RERA certificate issued for the project. This document has all the details like registration number, developer’s credentials and validity period. Compare the certificate details with the portal details to verify.
Cross-check with the Developer
It is better to ask for the RERA certificate from the developer and cross-verify it with the online details. Any mismatch should be clarified before buying.
Key Features of RERA for Buyers
RERA has several buyer-friendly features to safeguard their interests and make the property buying process smooth.
Standardised Sale Agreements
One of the key features of RERA is the standardisation of sale agreements between developers and buyers. These agreements have all the terms of sale, payment schedules and delivery timelines mentioned so that there is no ambiguity as was the case before RERA. So buyers are well-informed about every aspect of the purchase.
No Fund Diversion by Developers
To prevent misuse of buyer money, RERA says developers have to park at least 70% of the project funds in a separate escrow account. These funds can only be used for construction and land-related expenses.
Grievances and Dispute Redressal
RERA provides a platform for buyers to file complaints against developers for non-compliance, delays or false promises. The dispute redressal process is time-bound and efficient. It also gives buyers a fair chance to get justice and compensation.
RERA Compliance for Developers
For developers, RERA is mandatory. This has forced the industry to become more transparent and accountable.
Register Before Advertising or Selling
Developers must register their projects with the state RERA authority before advertising, selling or promoting. This ensures that only registered projects are marketed to buyers. Additionally, it creates a trustworthy environment in the real estate sector.
Project Status Updates
Developers have to update the project status on the RERA portal regularly. These updates include milestones like construction status, approvals received and expected completion date.
Penalty for Non-Compliance
RERA has severe penalties for non-compliance. These can be heavy fines to imprisonment in case of serious violations. This encourages developers to be transparent, quality and timely.
For luxury developers like Rustomjee, RERA compliance is not just about legal compliance but also about their reputation for delivering world-class properties.
Conclusion
RERA has changed the Indian real estate landscape, making it more transparent, accountable and buyer-friendly. For luxury buyers and investors, it ensures their high-value investments are safe with timely delivery and quality.
Rustomjee, a luxury real estate developer, follows RERA guidelines across all its projects. Whether it’s beautifully designed homes or world-class amenities, Rustomjee gives buyers a smooth and trustworthy experience. Check out Rustomjee’s residential properties and start your luxurious real estate journey today.
FAQs
- What is the main purpose of RERA?
RERA is to protect the interests of homebuyers and bring transparency and accountability to the real estate sector. By regulating developers, RERA eliminates delays, hidden charges and misleading claims. It also sets up a grievance redressal mechanism to resolve disputes quickly.
- Are all projects in India RERA approved?
No, only projects that are registered with the respective state RERA authority are RERA-approved. Some smaller projects or older developments may not fall under RERA. Buyers must check the RERA status of a property before buying to ensure compliance with the act.
- What happens if a developer violates RERA?
If a developer fails to comply with RERA norms they will face penalties including fines, suspension of project registration or even imprisonment for serious violations.
- Why is RERA important for luxury buyers?
RERA is important for luxury property buyers to get premium quality and on-time delivery. With its focus on transparency, RERA ensures that high-value investments are safe and risk-free from false claims or delays. This is more important for the discerning buyers who expect the best from their real estate investments.
