Understanding RERA and How It Protects Home Buyer's Safety
RERA, also known as Real Estate Regulatory Authority, is a constitutional act enacted by the Indian Parliament in 2016. In the real estate industry, RERA aims to increase transparency, trustability and efficiency in commitments and transactions. It helps ultimately in protecting the homebuyers interests and promoting fair practices among builders.
Here are some of the ways in which RERA has benefitted and continues to benefit home buyers.
RERA compels builders to disclose all information about the project details. This includes approvals, timelines and other specifications. Disclosing such information beforehand to a buyer fosters trust between the builder and the buyer. It reduces the chances of fraud and misleading practices in the real estate industry.
RERA provides strong protection for homebuyers by ensuring that the developers are maintaining high standard qualities with 100% transparency. All residential and commercial projects in Bangalore are mandated to register under RERA. Investing in a RERA approved project ensures that the project is strictly regulated and compliant with the law.
Developers of RERA-registered projects are answerable for their commitments, but, project-wise and finance-wise. They are mandated to maintain a separate escrow account for each project. The money may come from the advance booking payment from the buyer. The emergency fund ensures that no financial mismanagement can take place and the fund is only used for construction purposes.
The Act enforces strict timelines for project completion. Developers must adhere to these timelines, and any delays result in penalties, ensuring that buyers receive possession on schedule. This has significantly reduced delays in project completions across major cities.
RERA compels all builders to be answerable to all buyers and investors of each project. A streamlined grievance redressal process has to take place for any inconvenience to the buyer. If the builder is avoiding to address the grievance, buyers can contact the regulatory authorities and starttribunals against the builder. This effective grievance redressal process lessens the chance of lengthy court process and resolves disputes swiftly.
Such a RERA RERA-approved project is Godrej MSR City, Shettigere, North Bangalore. On 1t April 2025, it got its RERA registration number, which is PRM/KA/RERA/1250/303/PR/010425/007644). It will be a safe investment as it has both Godrej as the builder's name and the trust of RERA.
