For those who have ever been given a possession date that seems more like a “maybe someday,” RERA is here to help you avoid disappointment. It’s similar to having a tough, no-nonsense referee during a football game in that it makes sure developers play fairly and prevents you from chasing an unseen marker.
This RERA rules changes the balance of power by ensuring prompt deliveries and refunds and ensures buyers are active participants in the real estate market rather than merely hopeful bystanders.
Now, let’s explore what makes RERA the MVP you were unaware you required!
Table of Contents
What is RERA?
The Real Estate (Regulation and Development) Act is referred to as RERA. It was first introduced in 2016 to purge the wild west that was the Indian real estate industry, where customers were frequently left with nothing but a hole in their wallets (and their hopes) as developers overpromised and underdelivered.
Put more simply, RERA ensures that builders no longer behave like your erratic friend who always fails to deliver on their commitments. It guarantees responsibility, and openness, and—above all—protects you, the customer.
What is RERA Approved?
If a project is formally registered with the state’s RERA authority, it is deemed RERA-approved. This indicates that the developer has sent in all required paperwork for review, including project plans, financial information, deadlines, and land titles. Not approved by RERA? No selling. That is all there is to it.
Therefore, you should run away from a builders and developers who boasts about their “great new project” but is unable to provide you with an RERA registration number (ex: HRERA-PKL-REA-2231-2023), just like you would from a dubious gym membership seller.
RERA Rules and Regulations
We’ll keep it light, but this is where things become serious:
70-30 Rule: The 70-30 Rule requires developers to set aside 70% of homebuyers‘ funds in a specific escrow account, which can only be used for land and construction cost. This stops them from financing their next sports car or opulent home with your hard-earned money. Other expenses might be paid with the remaining 30%.
On-time Possession: Builders are required to produce by the specified date of possession. If they delay? Payment is required. Therefore, no more “Bas ek aur saal sir” justifications.
Maximum Advance Payment: Builders are not permitted to request more than 10% of the total cost of the property upfront. No hefty down payments that deplete your funds before you’ve even signed the contract.
Defect Liability Period: Identify any significant problems or construction defects within five years of moving in. It must be fixed by the builder; there is no additional fee.
Clarity of Carpet Area: When pricing a property, builders must consider the carpet area, which is the actual useable space rather than some fictitious “super built-up” nonsense.
How to Check RERA Registration Online?
Verify the RERA approval of your ideal project before committing. Here’s how to make sure:
- Go to the RERA website for your state (Haryana RERA, for example).
- Search for the “Search Project” or “Registered Projects” option.
- Enter the registration number, builder’s name, or project name.
- Check the project’s specifics, such as the builder’s history, approvals, and timetables.
Take caution if you are unable to locate the project; it is a warning sign!
RERA Rules for Maintenance Charges
Tired of developers charging ‘maintenance fees’ even after you’ve moved in and formed a residents’ association? RERA says they can’t. Builders must handle maintenance until the property is legally handed over to the buyers’ association. No sneaky extra bills.
Is RERA Approval Mandatory for Plots?
Yes! RERA approval is mandatory for plotted developments if the land exceeds 500 square meters or has more than eight plots. So even if you’re just buying land, check that it’s RERA-approved.
RERA Rules for Parking Allotment
Parking chaos? Not anymore. RERA mandates that builders specify exact parking details — how many slots are available, and how they’re allocated. That means no more surprise ‘extra parking fees’ or fighting your neighbour for a spot.
RERA Rules for Possession
You have two choices if your builder doesn’t give you possession on the scheduled date:
Full refund — get your money back with interest.
Stick with the refund – Continue working on the project and receive payment for the time lost.
To put it briefly, RERA makes sure that the builder, not you, bears the costs of possession delays.
RERA Rules for Refund of Booking Amount
Cold feet after booking? Under RERA, if you back out due to builder delays or false promises, they must refund your booking amount — with interest. Finally, some accountability!
RERA Rules for Payment Schedule
No more paying upfront without progress! RERA ensures payments are linked to construction milestones — you pay as the project advances. No more wondering if your money is funding the builder’s holiday home in Goa.
What to Do If a Builder Violates RERA Rules?
Here’s what to do if a builder pulls a fast one, such as requiring additional payments or postponing possession:
- Use the RERA portal in your state to submit a complaint.
- Add information such as your RERA registration number, payment records, and your agreement.
- Following an investigation by RERA officials, fines (including compensation) will be imposed if the builder is found to be at fault.
Take the matter to the Real Estate Appellate Tribunal if the RERA judgment isn’t enforced. No dishonest builder is above the law!
What Are the Limitations of RERA?
RERA is a significant benefit for purchasers, although it is not flawless. What it cannot fix is this:
Projects started before 2016: RERA only applies to projects started after May 1, 2017.
State differences: There are discrepancies because every state has its own RERA authority and regulations.
Enforcement delays: If developers drag things out in court, it may take some time to enforce the penalties that are in place.
Smaller projects: RERA may not apply to projects that are less than 500 square meters or have fewer than eight units.
All and All
RERA is your safety net in the real estate market; it’s more than just a law. It has your back, covering everything from guaranteeing prompt possession to controlling reimbursements, upkeep, parking, and payment schedules.
Always confirm that your project has received RERA approval before signing anything. To confirm project facts, you can even visit the official Haryana RERA website and check if it complies with RERA Rules.
So go ahead and confidently purchase your ideal house or investment luxury property. And when a builder attempts to pull a quick one again? Simply ask, “Is this RERA-approved?” and you’ll see the excuses go as quickly as your morning joe.
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