The introduction of RERA addressed several longstanding concerns in India's residential property market, where buyers often had limited information about project approvals, construction progress, payment structures and delivery timelines. The legislation established a regulatory framework under which developers are required to disclose specified project information and comply with statutory obligations. For homebuyers, understanding these provisions can make the purchase process more transparent and provide legal remedies when developers fail to meet their obligations.

1. Carpet area provides a clearer basis for pricing

RERA requires developers to disclose and sell residential units based on carpet area, rather than relying solely on broader measures such as super built-up area. This gives buyers a more consistent basis for comparing properties because common areas such as corridors and lift spaces are not included in the carpet-area measurement. Buyers can therefore compare the effective price per square foot across projects more easily and examine whether the quoted price corresponds with the actual usable area of the home.

2. Builder-buyer agreements have greater regulatory oversight

RERA introduced greater standardisation around agreements between developers and allottees. Developers are required to comply with the provisions of the Act and applicable state rules when executing agreements for sale. This provides buyers with greater protection against contractual provisions that conflict with statutory requirements. However, the exact interest or penalty mechanism is determined by the applicable RERA framework and circumstances, rather than automatically being a single uniform rate across India.

3. Buyers can verify projects before booking

A registered project must carry a valid registration under the applicable state RERA authority, subject to the exemptions provided under the Act. Project information is made available through state RERA portals, allowing prospective buyers to examine details such as approvals, sanctioned plans, developer information, project timelines and other disclosures. Checking the official registration before making a substantial payment can help buyers identify whether a project is operating within the regulatory framework.

4. Changes to sanctioned plans face restrictions

RERA provides protection against unilateral changes to sanctioned plans and project specifications. Section 14 requires the promoter to develop the project in accordance with the sanctioned plans and specifications. Certain alterations require the consent of at least two-thirds of the allottees, while structural changes are subject to additional requirements. This gives buyers greater protection where significant changes could affect the design, amenities or overall character of a project.

5. Buyers have remedies when possession is delayed

Project completion and possession timelines are among the most important contractual commitments for a homebuyer. Where a promoter fails to give possession in accordance with the agreement, RERA provides remedies to the allottee. A buyer who wishes to withdraw from the project may be entitled to a refund along with applicable interest and compensation, subject to the Act and relevant rules. An allottee who continues with the project can claim interest for the period of delay as provided under the applicable regulatory framework.

6. Structural defects remain the promoter's responsibility

RERA provides significant post-possession protection through its provisions on structural defects and certain defects in workmanship, quality or services. Under Section 14(3), if such defects are brought to the promoter's notice within five years from possession, the promoter is required to rectify them without further charge within 30 days. If the promoter fails to do so, the allottee is entitled to appropriate compensation under the Act. This provision gives buyers protection beyond the point at which possession is handed over.

7. 70% of collections are subject to project-specific fund safeguards

One of RERA's key financial safeguards requires promoters to deposit 70% of amounts realised from allottees from time to time into a separate account maintained with a scheduled bank. Withdrawals are linked to the percentage of completion of the project and are subject to certification by an engineer, architect and chartered accountant. The provision is intended to reduce the risk of project funds being diverted and strengthen financial discipline in project execution.

8. Buyers receive protection relating to title defects

RERA also addresses the consequences of defects in title. Under the Act, a promoter is responsible for addressing losses suffered by an allottee because of defective title to the land on which the project is being developed. The legislation therefore gives buyers a statutory avenue for seeking compensation where title-related problems cause financial loss. This makes examination of the project's land title and the disclosures available through the RERA registration particularly important before purchase.

9. Booking advances are capped before an agreement

Section 13 places a clear restriction on the amount a promoter can collect before executing an Agreement for Sale. A promoter cannot accept more than 10% of the cost of the apartment, plot or building, as the case may be, as an advance or application fee without first entering into a written and registered agreement for sale. This provision reduces the risk of buyers committing a substantial portion of the purchase price before the contractual terms have been formally established.

10. Project information can be monitored through RERA portals

RERA has also changed the flow of information available to homebuyers. Promoters are required to make specified project information publicly available through the regulatory authority, including details relating to project approvals, sanctioned plans, timelines and progress, as prescribed. Periodic updates allow buyers to track the status of registered projects rather than relying entirely on information provided by sales teams. This creates an additional source of information when buyers assess construction progress and their future payment obligations.
RERA has given Indian homebuyers considerably greater access to information and statutory remedies than were available under the fragmented regulatory environment that existed before the legislation. Its protections cover several stages of a property purchase, from verifying a registered project and limiting pre-agreement advances to monitoring construction, addressing delays and seeking remedies for qualifying defects. However, RERA should not be viewed simply as a negotiation tool: buyers still need to examine the agreement for sale, title documents, approvals, project disclosures and applicable state rules carefully. The strongest negotiating position comes from understanding both the developer's contractual commitments and the buyer's statutory rights.

Sources MoHUA, MahaRERA, SCI, Knight Frank India & ANAROCK