Published by admin July 28, 2025
Did you also have a bad experience in real estate, and now you can’t trust any builder at all? Well, if that makes you feel better, you are not alone! We all have either been in such situations or have heard stories about them. We understand that buying property is one of the biggest financial decisions most people make in their lifetime. And for a long time, the Indian real estate sector had a bit of a bad rep. From delayed projects to misleading ads and shady builders, buyers often felt helpless.
That’s where RERA, the Real Estate (Regulation and Development) Act, 2016, comes in. The RERA is a law that protects you, the buyer, by giving you transparency, accountability, and timely delivery from developers. So, if you have ever wondered, “What is RERA Act in real estate?” This rulebook for developers can also help homebuyers stay safe by learning their rights and the impact of RERA Act on real estate.
7 Benefits of RERA Act in Real Estate Industry
Below, we have jotted down the benefits of RERA Act in real estate industry and how it can help buyers in the real estate industry:
Timely Delivery or Penalty
One of the biggest pain points in Indian real estate has been the delays. We all have heard stories like “My builder promised the flat in 2017, but it’s 2023, and I am still waiting.”? That’s where RERA steps in, as builders now have to follow the timelines. If not, the buyer shall be compensated!
Transparent Project Information
Before RERA, developers often kept the buyers in the dark when they asked about “What is RERA Act in real estate?” So basically, you would never know if approvals were in place or what stage construction was actually at. All you get are some words that you have no choice but to trust. But now, with Aakruthi Properties, you get complete transparency, where you are in the loop with the layout plans, approvals, and project status.
Your Money Is Protected
Here is a big one for you: Builders now have to deposit at least 70% of buyer payments into a separate bank account. Now this money can only be used for construction and land costs for that project. So you do not have to worry about your money being used for anything other than your land.
Standard Carpet Area Calculation
If you also face the confusion of “built-up area,” “super built-up area,” and “carpet area,” then you would be glad to know that RERA solved that issue! Earlier developers used to play with numbers to increase the property prices. Not anymore! Now, the pricing must be based on the carpet area only, which is the actual usable space inside the house.
Fixing Defects
Let’s say you move into a new apartment, but just two months later, there is a leak in the ceiling or the tiles start coming off! Under RERA, you do not have to consider that your problem. Instead, builders are held accountable for it and are responsible for fixing any structural defects or poor workmanship for up to 5 years from the date you take possession.
No More False Advertising
You must be tired of looking at all those glamorous brochures and fancy model flats. Because once you match them to reality, they seem poles apart. But with RERA, builders can no longer make exaggerated claims! In fact, in states like Tamil Nadu, if a builder wants to run ads or marketing, they must mention the RERA number, project details, and QR details.
Real Estate Agents Also Regulated
Last but not least, RERA does not limit itself to just builders. It also holds agents accountable. How? Well, the agents must be registered and abide by RERA rules and regulations. This way, you will be less likely to deal with shady middlemen and more likely to work with professionals.
Also Read: 12 Essential Documents Required for Land Purchase in Bangalore
Impact Of RERA Act On Real Estate
Now that we have answered “What is RERA Act in real estate,” it’s time to move on to the impacts it’s making:
- When, as a buyer, you have verified disclosures and know the laws that protect you, there will have more confidence in buying.
- RERA has created dedicated authorities and tribunals, which will speed up the legal process if you ever get stuck in it. All you have to do is file a complaint (online works too) and expect a decision in 60 days.
- The official portal of RERA is a great way to access every document that matters, like land title, layout plan, permissions, and progress reports.
- If things go south, and possession has been delayed, or worse, the builder cancels it, then the buyer is entitled to a refund with interest.
- Now that RERA is here to supervise and builders are aware of the penalty provisions, they prioritize quality and timely delivery.
Buyer Protections Under RERA
Let us take you through all the rights you get as a buyer under RERA, which adds to the benefits of RERA Act in real estate industry:
- Right to Information on the project’s details, including RERA registration details, layout plans, and other relevant details.
- Right To Claim Compensation with interest if developers or builders are not able to deliver on time.
- Right to Timely Possession, especially when the project does not fulfil the agreed-upon specifications, or if there are significant delays, the buyer can then claim a refund.
- An Escrow Account must be maintained by the developer for each project, where 70% of the funds made by the buyer will be deposited. This way, there will not be any misuse of the funds.
- Right To Transparency in Numbers, which includes details of the project, completion timelines, and the progress made.
- Right To File a Complaint and Get a Timely Resolution of any dispute between the buyer and developers.
- Protection Against Unfair Practices like false marketing, advertisements, or claims made by the developer at the time of introducing project plans.
Also Read: Essential Checklist for Villa Property Investment | Expert Guide
Tips for Buyers: Make RERA Work for You
Always Check the RERA Registration
You must never book a flat without checking the builder’s RERA registration. All you have to do is go to your state RERA website, put in the number, and verify the details. If there is no RERA number, it is not safe.
Read the Agreement Carefully
When you get the final deed and other documents, make sure to read them word by word. It should mention delivery timelines, compensation clauses, carpet area, and other specifications. And so, go with a trusted developer like Aakruthi Properties!
Keep Records
Save everything. From emails and receipts to WhatsApp chat and brochures, make sure you have everything saved with you from point A to Z. These records will keep you safe if things don’t go in your favor.
Stay Updated
Most RERA portals let you track the construction updates, approval stays, and even if there have been any revisions on the project. So, even when the brochure talks about all the developments that took place, make sure to double-check on the RERA portal.
Use Your Rights
Now that you are aware of all your rights, you know what to do when needed, and what all you can ask for. If anything, then you can file complaints through the official RERA website, or many states also allow virtual hearings.
Final Word
RERA is one thing that truly justified the transformational change in Indian real estate. Now, when someone is in doubt about what is RERA act in real estate, you can tell that it is what has strengthened the rights of homebuyers, and has given them a more transparent and accountable platform. Which is why you should always go with a developer that makes properties feel like home: safe, peaceful, and RERA certified! So next time you search for properties in Bangalore, you know where to go.
Frequently Asked Questions
- What About “Buy Back in Real Estate and RERA Act”?
RERA does not directly enforce buy back in real estate and RERA Act schemes. However, if a builder promises one in writing, but then fails and backs out, that’s when you can file a complaint and seek compensation.
- How will RERA affect the buyers?
It puts you, the buyer, in control. With the rights RERA brings for the buyers, you can ensure timely possession, better quality of construction, financial transparency, protection, and legal support.
- What is the purpose of the RERA Act?
Its purpose is to protect buyers and bring fairness into the Indian real estate sector by promoting transparency and ensuring timely possession.
- What is the 70% rule of RERA?
In short: At least 70% of the money given by the buyer must be kept in a separate bank account, and can only be used for the project’s development.
- How does RERA affect real estate agents?
The agents must register what they are selling and follow the rules. If RERA catches them being unfair by misleading or selling unregistered properties, they can be fined or banned.