Impact of RERA on Residential Property Buyers
One of the biggest financial decisions in anyone’s life is buying a home. But many homebuyers in India do not have any real protection for that. Issues like construction delays, sudden price increases, changes in project plans, and misleading promises by builders were common. All this changed in 2016 when the government introduced the RERA (Real Estate Regulation and Development) Act.
RERA was designed to bring more rules and fairness to home buying. It sets clear rules for builders and agents. It also gave homebuyers new rights that were not before. RERA is now helping buyers to feel safer and more informed.
This blog explains the RERA benefits for homebuyers and tells how it changed the market for good.
What Is RERA and Why Is It Important for Homebuyers?
RERA is a law that was passed to regulate the real estate sector in India. It allows developers to follow fixed rules and register their projects before selling them. Builders now have to share real project details, like timelines, approvals, and carpet area.
The main goal of this act is to protect homebuyers. It gives them tools to check details online and raise complaints if something goes wrong. According to the Ministry of Housing, more than 1 lakh complaints have been resolved under RERA across India by 2023.
Key Benefits of RERA for Homebuyers
- Transparency in Project Information
There was a time when buyers had to trust whatever the builder said. There was not any easy way to check if the project had proper approvals or if the promised features were real.
Things are different now. Every project must be registered under RERA. Builders have to clearly list all the details like floor plans, start and end dates, and approval documents. This information is available online on state RERA websites.
This means you can now check everything before paying a single rupee. You will know what you are buying, when you will get it, and who is building it. This can make the whole process clearer and safer for you. All of these changes are key advantages to compliance with Real Estate Regulation and Development Act that can help buyers to stay informed.
- Timely Delivery of Projects
Many builders used to promise to finish a home in two years but take five or more for the same. In this buyers had no choice but to wait or spend more money on rent.
RERA has changed this. If a builder delays the project now then they have to pay you the interest for every month of delay. This rule makes the builders stick to their promises.
In fact, recent reports show that most RERA-approved projects now finish close to the promised date. This gives buyers peace of mind and helps them plan better. Thanks to homebuyer protection laws that are helping many buyers to get their projects on time.
- Standardised Measurement of Carpet Area
Builders used to charge based on super built-up area, which includes staircases, walls, and even open spaces. This used to confuse many buyers and make them pay for unfair pricing.
RERA fixed this problem. Builders can now use only carpet areas that are the actual usable space inside your home. This makes pricing more honest and easier to understand.
For example, if a flat is said to be 1000 sq. ft. in carpet area then you can actually use all 1000 sq. ft. You are paying for what you will use and not for empty lobbies or lifts.
- Financial Protection for Buyers
One of the best advantages for homebuyers under RERA is the protection of your money. Before that, some builders used to take money from buyers and spend it for other projects. If one project failed, then all the buyers used to suffer.
Now, builders must keep 70% of the money collected in a separate bank account. That money can only be used for that specific project.
This makes sure that your money is safe and used only for building your home. It also reduces the chance of builders running out of funds or abandoning the project halfway.
- A Fair Way to Solve Problems
If anything goes wrong, like late possession, poor construction, or changes in layout, then you don’t need to go to court or wait for years for that.
RERA gives you a fast and fair way to complain. You can file your issue on the state RERA website or at the RERA office. Most cases are solved in a few months.
Also, if your builder refuses to give a refund or doesn’t follow the plan then it can make them fix it or pay you back. This makes the system fairer for everyone, especially for first-time homebuyers. This complaint process is one of the most helpful Advantages of following RERA guidelines today.
How RERA Affects Developers and the Market
- Builds Trust and Credibility
RERA has helped developers build a better image in the market. When a builder follows the rules, then buyers see them as a more honest and reliable source. This trust encourages more people to book homes with such developers. It also brings long-term growth for builders who stick to the law. A 2022 PropTiger report showed that builders registered with RERA saw 35% more bookings than those without registration. This proves that trust and legal clarity matter a lot to buyers. These results reflect one of the major RERA benefits for homebuyers. This brings greater confidence for homebuyers in who they are buying from.
- Reduces Fraud and Misleading Practices
Many builders used to make big promises that were not true before RERA. Some used to advertise for early delivery or gave confusing prices to attract customers. These tricks made the buying process more risky for the purchasers. RERA has now banned these unfair practices. Builders can only share the information that is officially approved in their project files. They must list correct timelines, floor plans, and other details for a clear approach. This rule helps reduce cheating and brings more stability to the market. Buyers can now make choices based on facts, not fake promises.
Homebuyer Protection Laws Under RERA
RERA has introduced strong laws to protect homebuyers. These rules give buyers more control and safety during their home-buying journey.
- Full Refund if Project is Cancelled
If a builder cancels the project, then buyers have the right to get their money back. This includes any amount that is paid in advance. This gives peace of mind to the buyer. - No Changes Without Buyer’s Approval
Builders cannot change the layout, floor plan, or design after booking. If any changes are needed, then they must get written approval from the buyer. - Free Repairs for Structural Issues
If the home has structural problems within five years of possession, then the builder has to fix them. This rule protects buyers from hidden faults. - Clear Payment Schedule in Advance
Builders must share the full payment plan before taking money. Buyers will know when and how much they need to pay. This avoids surprise charges.
Conclusion
RERA has made home buying safer, fairer, and more informed. The law has brought real change to the property market, from timely delivery to honest pricing. Buyers now have better rights and more power to protect their money and future.
This impact is visible in many Indian cities, including the rise in residential property in Ahmedabad. More projects in Ahmedabad now follow RERA. This leads to better outcomes for homebuyers.
So, if you are planning to buy your dream home, then look for RERA-approved properties. It is a smarter and safer move.
To explore such safe and trusted homes, visit Shafalya Infra. Your partner in responsible homeownership.