Why RERA Registration Is Important? A Complete Guide

I dont think it is advisabel to buy non-rera registered project across India. It is primarily because of following reasons:

• RERA registration provides important legal guarantees to buyers.
• Unregistered projects may face delays.
• Without the transparency enforced by RERA, there is a greater risk of hidden costs and unexpected fees accumulating after you have already invested in the property.
• Unregistered properties may have difficulty finding buyers due to legal uncertainties and potential stigma.

No its illegal to start construction without RERA (Real Estate Regulation and Development Act) approval.

Means, all real estate projects with more than a certain number of units or a specified land area must be registered before initiation.

Any builder/ developer not adhering to this will face severe penalties and legal tussles.

RERA ensures transparency, protects buyers’ interests, and promotes accountability in the real estate sector, making it a mandatory prerequisite for any construction project in the country.

So, it is highly recommended to check for RERA registration before purchasing any property in India.

If the RERA registration of a project in India expires, it means a significant violation of regulatory norms.

Means, a builder/ developer will certainly face a legal consequences, including penalties and project halts.

This way, home buyers’ protection reduces dramatically and the project loses credibility.

To avoid such issues, developers must ensure timely RERA renewal, maintaining transparency and adherence to guidelines throughout the project’s lifecycle.

Expired RERA registration can erode trust, impacting the project’s market standing and potentially leading to legal disputes.

RERA (Real Estate Regulation and Development Act) is applicable in all states of India.

There is no state in India where RERA is not applicable.

The RERA registration is a state-wise registration process and varies from state to state.

The process is online and can be applied from the official website of the state in which the project is located.

The RERA registration is mandatory for all real estate projects with more than a certain number of units or a specified land area.

Non-compliance can lead to penalties and legal repercussions for the promoter.

While RERA in India aims to protect homebuyers, builders face quite a challenges.

The strict compliance (adherence) requirements and penalties for project delays can strain finances.

Additionally, disclosing project details may expose developers to increased competition.

The escrow account mandate (a big headache) limits fund diversions, impacting financial flexibility.

Yet, these disadvantages are outweighed by enhanced industry credibility, improved project planning, and increased consumer trust in RERA-registered builders, ultimately contributing to the long-term sustainability and growth of the real estate sector.

While RERA (Real Estate Regulation and Development Act) in India doesn’t directly cancel a project, it can revoke the project’s registration for non-compliance.

If developers fail to adhere to RERA guidelines, such as delays without proper reasons or misleading information, the regulatory authority can withdraw the project’s registration.

This could lead to legal consequences for developers and impact the project’s credibility.

RERA focuses on ensuring transparency, timely completion, and buyer protection, maintaining the integrity of the real estate sector.

In India, RERA affords buyers substantial rights regarding refunds based on different situations:

• Pre-launch cancellations: Developers are obligated to reimburse 70% of the pre-launch booking amount within 30 days, deducting registration and marketing fees.
• Post-launch cancellations by the buyer: Buyers are entitled to a proportional refund of the deposited amount, excluding builder expenses and taxes.
• Project delays or non-completion: In case of missed deadlines, buyers have the option to choose between a refund with accrued interest or taking possession with compensation.
• Builder defaults: In extreme cases, buyers can exit the project, receiving a complete refund with interest and compensation for mental distress.

Note: Timelines and regulations may slightly differ by state. Refer to the relevant RERA authority for precise information.

Purpose of RERA Act is multi-fold.

However, some of them important roles & responsibilities of RERA is as under:

• Protects the interests of homebuyers by ensuring transparency in real estate transactions.
• Holds developers accountable for project details, timelines, and quality standards.
• Establishes guidelines for developers to register their projects and comply with regulatory norms.
• Emphasizes project completion within specified timelines, reducing delays.
• Discourages deceptive practices and promotes honesty in dealings.
• Aims to create a balanced, trustworthy real estate market benefiting both consumers and developers.
• Imposes penalties on developers for non-compliance with RERA regulations.
• Sets up regulatory bodies for swift resolution of disputes between developers and homebuyers.