If you are planning to invest in real estate, one critical question to ask is: why RERA approval is required. The Real Estate (Regulation and Development) Act, or RERA, was introduced in 2016 with the aim of protecting homebuyers and bringing accountability to the real estate industry. The approval is not just a regulatory formality; it offers multiple benefits that make your property purchase more transparent, secure, and hassle-free.
Let’s explore the key advantages of buying a RERA-approved property and understand why this approval has become a must-have for informed buyers.
???? 1. Transparency in Project Details
One of the major benefits of RERA is that it makes essential project information publicly accessible. Developers are legally required to register their projects with the state’s RERA authority and share details like:
Land title and ownership
Layout and building plans
Construction timeline
Legal approvals
Amenities offered
This allows buyers to make informed decisions and prevents developers from hiding important facts.
???? 2. Timely Possession and Delivery
A primary reason why RERA approval is required is that it binds builders to deliver homes on the promised timeline. If there are unjustified delays, buyers are entitled to compensation or a refund with interest. This protects you from the frustrations and financial burdens of long project delays.
???? 3. Financial Security with Escrow Accounts
RERA mandates that 70% of the money collected from buyers must be deposited in a separate escrow account and used only for that specific project. This prevents misuse of funds and ensures steady progress in construction, safeguarding your investment.
???? 4. Standardization of Carpet Area
Before RERA, developers often used terms like “super built-up area,” which included common areas and led to confusion. With RERA, only the carpet area, the actual usable space inside the home, can be used to determine pricing. This brings uniformity and ensures buyers know exactly what they’re paying for.
???? 5. Legal Protection and Penalties for Default
Another benefit of RERA is the legal protection it offers. If developers violate RERA rules or fail to meet their obligations, they can face heavy penalties, cancellation of project approval, or even imprisonment. This compels builders to operate ethically and responsibly.
???? 6. Grievance Redressal for Buyers
RERA also empowers buyers by providing a fast-track complaint resolution system. If you face issues such as project delays, false advertising, or quality discrepancies, you can file a complaint with the RERA authority. Resolutions are legally binding and often faster than traditional legal processes.
???? 7. Consent for Changes
Under RERA, a developer cannot make any major changes to the layout, structure, or design of the project without written consent from at least two-thirds of the allottees. This protects buyers from unexpected changes and ensures their voices are heard.
???? Buying Home Before RERA: A Risky Decision
To truly understand the value of RERA, look at what buying home before RERA involved: unclear pricing, project delays, and lack of legal protection. There were no standard definitions, and buyers often had no way to seek justice. RERA changed that by introducing transparency, legal oversight, and financial discipline into the sector.
???? Conclusion
In summary, understanding why RERA approval is required helps buyers see the many benefits it offers—transparency, financial security, legal safeguards, and accountability. Whether you’re purchasing your first home or investing in a new project, choosing a RERA-approved property ensures a safer and smoother experience.