RERA for Buyers: What It Protects, and What It Does Not
RERA changed the balance of power between buyers and developers, but it is often misunderstood as a guarantee of safety rather than a disclosure and enforcement framework. This guide explains what to actually check, and what RERA leaves outside its scope.
Year RERA Act was enacted
2016
Project funds mandated in escrow
70%
States/UTs with functional RERA authorities
30+
Standard structural defect liability period
5 yr
What the data says
Every project above 500 sq m or 8 units must register with the state RERA authority before advertising or accepting bookings, and the registration number should appear on all marketing material.
RERA mandates that 70% of buyer collections for a project go into a dedicated escrow account, which is meant to limit developers diverting funds across projects.
The RERA-filed possession date is legally binding, and delay beyond it entitles buyers to compensation or a refund with interest, subject to the buyer filing a complaint.
RERA does not verify land title, does not guarantee construction quality beyond the defect-liability period, and does not cover disputes arising before a project was registered.
How EstateVeda executes this
Confirming a project registration number is active and matches the specific tower or phase being sold.
Reviewing the RERA-filed project details — sanctioned plan, promoter details, timeline — against sales material.
Checking complaint history of the promoter across other registered projects.
Advising on the correct authority and process to escalate should possession be delayed.
Risks we underwrite against
Assuming RERA registration substitutes for independent title verification.
Buying inventory in a phase that has not yet received its own RERA registration.
Underestimating that RERA remedies still require the buyer to file and pursue a complaint.
EstateVeda verdict
Treat RERA registration as a necessary baseline check, not a substitute for independent title and builder due diligence.
Frequently asked questions
Can I buy a property that is not RERA registered?
It is legally risky. Any project above the threshold size that is not registered cannot legally be marketed or sold, and buying into it removes access to RERA remedies for delay or defects.
Does RERA guarantee my money is safe?
No. RERA mandates 70% of collections stay in escrow for that project's construction, which reduces fund diversion risk, but does not eliminate builder insolvency or execution risk entirely.
What can I do if possession is delayed beyond the RERA date?
You can file a complaint with the state RERA authority seeking compensation, interest for the delay period, or a full refund with interest, depending on your preference and the facts of the case.