RERA: A Shield for Home Buyers and a Wake-up Call for Builders
Builder Guide News Desk
RERA: A Shield for Home Buyers and a Wake-up Call for Builders
Mangaluru:
The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought a major change in India’s real estate sector, ensuring transparency, accountability, and protection for home buyers. Introduced by the Government of India in 2016, RERA aims to regulate property transactions and curb the long history of delays and unfair practices by developers.
Under the RERA Act, every builder and real estate project must be registered with the state’s Real Estate Regulatory Authority before advertising or selling any unit. In Karnataka, this authority is known as K-RERA (Karnataka Real Estate Regulatory Authority).
This registration process ensures that only approved and verified projects are promoted to the public. Builders must clearly mention project details such as land status, approvals, timeline for completion, and financial transparency.
How RERA Protects Buyers
One of the major benefits for buyers is that developers can’t divert project funds. At least 70% of the collected money must be kept in a dedicated bank account and used only for construction and land costs.
If the project is delayed, RERA allows home buyers to claim compensation or even withdraw their investment with interest.
RERA also acts as a quasi-judicial body — meaning it has the power to resolve disputes between buyers and builders within a fixed time frame, without the need for long court battles.
Impact on Builders
For builders, RERA has set new professional standards. Delays, false promises, or misleading advertisements can lead to heavy penalties, project deregistration, or even imprisonment. However, many developers believe RERA has also built trust among home buyers, leading to a more stable and reliable property market.
Public Awareness Still Low
Despite being in force for nearly a decade, public awareness about RERA remains limited, especially in smaller towns and taluks. Experts say buyers should always check the RERA registration number of a project before booking any property. The details can be easily verified on the official K-RERA website.
Conclusion
RERA has transformed the way India’s property market functions — making it more transparent, consumer-friendly, and organized. It stands as a reminder that the dream of owning a home must be protected by law, not left to chance.
— Builder Guide Desk
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