Understanding RERA and how to check a project

What the Real Estate (Regulation and Development) Act asks of a builder, and what to look at as a buyer.

What it is

The Real Estate (Regulation and Development) Act, 2016 created a regulator in each state. Larger projects must be registered with it before they are advertised or sold, and a registered project is given a number that anyone can look up on the authority's website.

What registration gives you

The details and the thresholds are set in the Act and by each state's rules, so check the authority's own pages for your state.

• The project's approved plans, layout, timeline and the promoter's details are published, so you can compare the sale pitch with the record.
• A promoter must keep a share of the money collected from buyers, set by the Act at 70 per cent, in a separate account for that project's construction and land cost.
• Area is sold by carpet area, the usable floor area inside the walls, which is easier to compare than a loaded super built-up area.
• A buyer can claim for structural defects reported within five years of possession.
• There is a route to complain to the state authority if a project is late or differs from what was promised.

How to check a project

A project that shows no registration number is a question to put to the builder before you pay anything.

• Find the registration number on the builder's material and on the listing.
• Open your state's RERA website and search by that number.
• Compare the project name, the promoter, the completion date and the number of units with what you were told.
• Look at the quarterly updates the promoter files, which show progress against plan.

What registration does not do

Registration is not a guarantee of quality or of delivery on time. It makes a promise public and gives you somewhere to take a complaint. Resale homes in finished buildings are not usually registered projects, so for those the documents guide is the one to follow.

This guide is general information, not legal, tax or financial advice. Rules differ between states and change over time, so confirm the details that matter to you with a qualified professional or the authority concerned before you act.