If you are buying a home or investing in property in India, understanding what is RERA is absolutely essential. The Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced to bring transparency, accountability, and fairness to the real estate sector.
From protecting homebuyers’ rights to regulating builders and developers, RERA in real estate has transformed how property transactions work in India.
In this detailed guide, we explain what is RERA, what RERA approved means, how RERA carpet area is defined, and all other important subtopics every homebuyer and investor should know.
What is RERA in Real Estate?
RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is a central law enacted by the Government of India to regulate the real estate sector and protect the interests of homebuyers.
Under this Act, every state and union territory has its own RERA authority, such as Haryana RERA, Maharashtra RERA, or UP RERA, responsible for implementing and enforcing the rules.
The primary objectives of RERA are:
- To increase transparency in real estate transactions
- To ensure timely delivery of projects
- To protect buyers from unfair practices
- To create a standardized system across the real estate sector
Also Read – What is BBA in Real Estate?
RERA in Real Estate: Why It Was Introduced
Before RERA, the Indian real estate sector faced several issues such as project delays, misleading advertisements, unclear carpet area mentions, and lack of accountability from developers.
Purpose of RERA in real estate is:
- Regulate builders and promoters
- Mandate project registration
- Ensure clear disclosures to buyers
- Reduce fraud and misinformation
Today, RERA has significantly improved buyer confidence in property investments.
What Does RERA Approved Mean?
A RERA approved project is one that is officially registered with the respective state’s RERA authority. When a project is RERA registered, the builder is legally bound to follow the rules & obliged by the Act.
A RERA approved property ensures:
- The project details are legally verified and publicly available
- The builder cannot change plans without buyer consent
- Funds collected from buyers are used only for that project
- The promised possession timeline is legally binding
Homebuyers should always check the RERA registration number of a project before investing.
RERA Registration: Who needs to register
- All residential and commercial projects above a specified area must be registered
- All real estate agents involved in selling such projects must also register under RERA
Projects cannot be advertised, sold, or marketed without RERA registration. This has helped to reduce false marketing and fake promises.
RERA Carpet Area Explained
One of the most important changes introduced by RERA is the standard definition of RERA carpet area.
What is RERA Carpet Area?
RERA carpet area is the net usable floor area of an apartment, excluding:
- External walls
- Areas under service shafts
- Exclusive balconies or verandas
- Open terraces
It includes:
- Internal partition walls
- Usable living space inside the apartment
RERA Carpet area ensures buyers know exactly how much usable space they are paying for.
Difference Between Carpet Area, Built-Up Area & Super Built-Up Area
Before RERA, builders often sold properties based on super built-up area, leading to confusion. RERA eliminated this confusion.
- Carpet Area (RERA): Actual usable area inside the home
- Built-Up Area: Carpet area + wall thickness
- Super Built-Up Area: Built-up area + common areas like lifts and lobbies
Under RERA, pricing must be based only on RERA carpet area, ensuring transparency.
Key Features of RERA Act
Some of the most important provisions of the RERA Act include:
- Mandatory project registration
- Disclosure of project details on RERA website
- 70% of project funds to be kept in a dedicated escrow account
- Penalties for delayed possession
- Builder liability for structural defects for 5 years
- Clear grievance redressal mechanism
These features make RERA one of the most buyer-friendly laws in India.
Rights of Homebuyers Under RERA
RERA gives clear & strong legal protection to buyers. Homebuyers have the right to:
- Access complete project information
- Receive possession on time or get compensation
- File complaints against builders in case of any issues from builder’s side
- Get refunds for project cancellation or major delays
- Receive compensation for false advertising
This has significantly reduced disputes and increased trust in real estate transactions.
Responsibilities of Builders Under RERA
Builders and developers must:
- Register projects with RERA
- Adhere to approved plans
- Deliver projects on time
- Use funds responsibly
- Examine construction defects
Failure to comply can lead to heavy penalties or even imprisonment.
How to Check RERA Registration of a Project?
Buyers can verify RERA registration by:
- Visiting the official state RERA website
- Searching using the project name or registration number
- Checking details like approvals, timelines, and promoter history
Conclusion
Overall, RERA is an important government act that benefits both home buyers and investors. This act brings transparency, accountability, and buyer protection at its core.
It brings a long-overdue structural reform to the Indian real estate sector and really helps make informed property decisions. If you are a homebuyer or property investor, it is important to understand what RERA is.
It is important for both buyers and investors to choose RERA-registered projects and verify all details. This will safeguard your investment and avoid common risks associated with delays, misleading information, and legal disputes.
RERA also builds trust, safeguards their investment, and helps avoid common risks associated with delays, misleading information, and legal disputes. It also ensures trust between developers and consumers.
FAQs
1. What is RERA in simple words?
RERA is a law that regulates real estate projects and protects homebuyers from delays, fraud, and unfair practices.
2. Is RERA applicable to all real estate projects?
RERA applies to most residential and commercial projects above a specified size, with few exceptions.
3. What does RERA approved mean?
RERA approved means the project is registered with the state RERA authority and follows legal guidelines.
4. What is RERA carpet area?
RERA carpet area is the net usable area inside an apartment, excluding balconies, terraces, and external walls.
5. Is it mandatory to buy only RERA registered properties?
While not mandatory, it is highly recommended for safety, transparency, and legal protection.
6. Can builders change project plans after RERA registration?
No, major changes require consent from at least two-thirds of the buyers.
7. What happens if a builder delays possession under RERA?
Buyers are obliged to compensation or can opt for a refund with interest.
8. How does RERA protect homebuyers?
RERA ensures transparency, timely delivery, fair pricing, and a strong grievance redressal system.
9. Can complaints be filed under RERA?
Yes, buyers can file complaints with the respective state RERA authority.
10. Does RERA apply to resale properties?
RERA primarily applies to new projects and ongoing developments, not direct resale between individuals.
