RERA Compliance Checklist for Real Estate -Essential for Home Buyers

The Real Estate Regulation and Development Act, 2016 (RERA) was introduced to ensure that the Indian real estate market is transparent, efficient, and held accountable for its actions. Before RERA was introduced, the real estate market in India was disorganised, with frequent project delays, financial mismanagement and fraud. The main aims are to protect homebuyers from unfair practices and establish an authority to address any grievances by giving buyers a RERA compliance checklist. 

Ever since RERA, real estate in India has become more structured and given clarity to buyers and investors. Buyers have access to a checklist to ensure that developers have disclosed all the necessary details about every residential project, thus reducing the chance of fraud and delay. 

In this blog, we will answer important questions, like What is RERA Compliance?, and learn about RERA regulations for property buyers and developers.

Key RERA Compliance Requirements for Home Buyers

All developers should make sure that their projects meet the following RERA compliance requirements: 

• Project Registration: 
  • All residential projects over 500 sq meters and more than 8 apartments must be registered with the respective state’s RERA authority. 
  • Buyers can check details on the state RERA site. 

• Promoter Details: 
  • RERA mandates that developers must reveal their past project history, financial records and land ownership details. 
  • There should be a clear disclosure of the track record to ensure credibility. 

• Project details disclosure:
  Developers must give the following information.
  • Layout plans
  • Structural approvals
  • Amenities
  • Legal clearances
  • Expected completion dates. 

• Escrow Account Verification:
  • RERA ensures financial transparency by having builders deposit 70% of their project funds in a separate escrow account. This is a temporary account that receives and hands out money on behalf of the transacting parties, depending on conditions set by them.
  • It helps prevent fund misallocation and makes sure that the money is used for construction and land costs only. 

• Following carpet area definition: 
  • Developers need to define and charge buyers based on the carpet area, which is the usable area within the walls of the apartment. 
  • It helps eliminate any misleading calculations based on super-built-up areas. 

• Project Timelines: 
  • Builders should follow the promised timelines for project completion. 
  • Buyers also have the right to compensation in case of delays.

RERA Compliance Checklist for Home Buyers

As a homebuyer, remember to go through this RERA checklist before purchasing a property: 

• Developer Credibility: Check the developer’s past projects, financial stability and customer feedback. Also, remember to check that they are not involved in any legal disputes. Take, for example, Raymond Realty’s Ten X Habitat – Thane. They have registered with RERA and provided all the required information. 

• RERA Registration Number: By checking the RERA registration number, you will be able to check if it is a RERA-approved project. 

• Approved building plans: Verify that the building plans provided by the developer have been approved by the RERA authority. It will also help you confirm that it is not an unauthorised construction. This also includes detailed information about amenities and parking spaces. 

• Payment Schedules: RERA regulations for property buyers state that 10% of payment has to be made in advance before signing the agreement. Subsequent payments are to be made as per each milestone during construction. Additionally, check if there has been a brokerage fee disclosure. 

• Possession Date and Penalties: Developers have to stick to the provided delivery date for both the flat, and the amenities. In case of delays, you as a buyer are entitled to interest compensation. 

• Defect liabilities: RERA mandates a 5-year defect liability period. During this time, the builder can fix defects, plumbing, electrical, or other construction-based issues. This helps in increasing transparency between the buyer and developer. 

Advantages of RERA for Homebuyers

Here are some advantages of RERA that you as a homebuyer will have: 

• Enhanced Transparency: You will get to see detailed project information, such as layouts, land ownership, legal approvals and progress reports. It will also protect you from misleading ads and false promises. Make sure you verify with the RERA checklist before purchasing a property. 

• Financial Protection: The compulsory escrow account ensures that the money is put to proper use. Developers also can’t divert funds to other projects, thus reducing financial risks and assuring you. 

• Standard Carpet Area: You know the amount you are paying is for the actual carpet area, thus reducing inflated prices based on the super-built-up areas. 

• Timely project delivery: Developers have to strictly adhere to deadlines as delays will lead to financial penalties for them. This will also reduce uncertainties for buyers. 

• Legal Recourse: RERA has a fast-track grievance redressal system, where you can file any complaints and expect timely resolution. 

Importance of Choosing Only RERA-Registered Properties

By selecting a RERA-approved project, you are choosing legal protection and financial security. Here’s how: 

• Legal Assurance: 
  • RERA compliance for real estate mandates that every project should follow the legal and regulatory guidelines. This includes land approvals, financial security and sticking to the construction timelines. 
  • Buying a property registered with RERA means that the project is legally authorised and free from any legal disputes.

• Protection Against Fraud: 
  • Many builders launch projects without any proper approvals, which leads to delays, financial loss or even cancellation. 
  • By ensuring RERA compliance, you are ensuring that the developer follows all strict accountability measures, thus lowering the chance of fraud or illegal projects. 

• Access to Information: 
  • RERA guidelines for homebuyers help you access project information on the state’s RERA website. You can check the developer’s past projects, performance history, completion timelines and financial details. You can also check to see what legal approvals they have, and the construction progress. 
  • Transparency helps buyers make informed investment decisions. 

Steps to Invest in RERA-Regulated Properties

Follow this step-by-step approach when you are investing in a RERA-registered property:

Step 1: Initial Research. 

• Use the official RERA website of the state, and find your desired projects based on the location. 
• Compare the properties based on the builder’s credibility, amenities, location and price. 

Step 2: Consultation. 

• Engage with RERA-registered real estate agents, who know the legal framework and can help you. 
• Avoid any unregistered agents. They might mislead you about project approvals. 

Step 3: Site Visits. 

• Personally visit the shortlisted properties to inspect construction quality, locality and amenities. 
• Check if the construction’s progress aligns with the timeline mentioned on the RERA portal. 

Step 4: Documentation. 

Verify all the legal documents for RERA compliance, such as: 

• The project’s RERA registration certificate. 
• Land title and ownership documents. 
• Approved building plans and clearances
• Escrow account details. 

Step 5: Agreement Signing. 

• Make sure that the sale agreement with your desired project follows RERA rules for property buyers
• The agreement should mention important points like the possession date and penalties for delays, the carpet area as per RERA, and the payment schedule according to the construction progress. 

Step 6: Continuous Monitoring. 

• Make sure that you are up to date on the project’s progress. You can do this by checking the RERA portal regularly. 
• In case of delays or inconsistency, you can file a complaint with RERA for resolution. 

Frequently Asked Questions (FAQs)

1. What are the compliances under RERA?
   The main RERA compliances are project registration, escrow account maintenance, carpet area standardisation, timely project compliance, and transparency while advertising. 

2. Why is RERA needed in real estate?
   RERA was introduced in 2016 and protects buyers from fraud, delays and financial mismanagement. It also brings accountability, provides clarity, and gives buyers a mechanism for grievance redressal. 

3. How will RERA affect the buyers?
   Buyers will gain legal protection. RERA also ensures that projects are priced fairly based on carpet area, and compensates buyers in case of delays. 

4. What is the process to verify a project’s RERA registration?
   – Start by visiting the official RERA website for your state. 
   – Next, enter the RERA registration number or builder’s name. 
   – Check the details, such as the project’s status, approvals and timelines. 

5. How does RERA benefit first-time home buyers?
   RERA helps prevent financial fraud, guarantees clarity, reduces risks and offers a structured mechanism for any complaints. 

Final Thoughts

RERA transformed India’s real estate. It has encouraged clarity when it comes to projects, making it more structured, transparent and secure for homebuyers. 

There are many RERA rules for home buyers to follow: always check what they are while purchasing your dream home. If you are planning on buying a property, then go for a reputed builder like Raymond Realty in Mumbai. Follow the RERA compliance checklist and ensure a legally safe purchase!