RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is a comprehensive law enacted by the Indian Parliament to regulate the real estate sector, protect home buyers, and bring accountability to developers.
Key provisions of RERA:
- Mandatory Registration: All residential and commercial projects with more than 8 units or land exceeding 500 sq.m. must be registered with the state RERA authority before advertising or selling.
- Carpet Area Pricing: Developers must sell based on carpet area, not super built-up area, bringing clarity to what buyers are paying for.
- Escrow Account: 70% of the money collected from buyers must be deposited in a separate escrow account and used only for construction of that specific project.
- Timely Delivery: Developers must deliver projects on time. Delays attract penalties and buyers can claim compensation or withdraw with a full refund plus interest.
- Structural Defect Liability: Developers are liable for structural defects for 5 years after possession, ensuring quality construction.
- No Plan Changes: Developers cannot change the sanctioned plan without the consent of two-thirds of buyers.
In Telangana (Hyderabad): The state RERA authority is TS-RERA (Telangana State Real Estate Regulatory Authority). All projects in Hyderabad must be registered with TS-RERA before being marketed or sold. You can verify any project's RERA status on the TS-RERA website.
A RERA-registered project gives buyers legal protection and recourse in case of disputes, delays, or misrepresentation by the developer.