Project delays, unethical company methods, and a lack of transparency have long been problems in India’s real estate market. To address these challenges, the Real Estate (Regulation and Development) Act (RERA) was introduced in 2016, revolutionising the way property transactions are conducted. But why is RERA required in real estate? Simply put, it protects homebuyers, ensures accountability from builders, and brings much-needed transparency to the sector.

In this detailed guide, we will explore:
✔ What is RERA in real estate?
✔ Why is RERA approval required?
✔ Why RERA registration is important?
✔ How RERA benefits buyers, builders, and investors

By the end, you’ll understand why RERA is a game-changer for India’s real estate market.

What is RERA in Real Estate?

The Real Estate (Regulation and Development) Act (RERA) is a landmark law enacted by the Indian government to regulate the real estate sector and protect homebuyers. It mandates:

✅ Mandatory registration of real estate projects (above 500 sq. m. or 8 units).
✅ Disclosure of project details (layout, approvals, timelines).
✅ Escrow account usage (70% of funds must be used for construction).
✅ Penalties for delays (builders must pay interest for late delivery).

Why RERA Approval is Required?

Before launching any real estate project, developers must receive RERA permission, which is one of the main requirements of RERA. Why, however, is RERA clearance necessary? Here are the primary causes:


1. Verifies the Project’s Validity

Legal issues and construction delays resulted from numerous builders starting projects prior to RERA without the required approvals. RERA now requires that before registering, developers get all required certifications, including building licenses, environmental approvals, and property titles. Projects that are fake are less likely as a result.


2. Protects the Investments of Homebuyers

Developers are required by RERA to place 70% of the project cash in a specific bank account. This lowers the probability of project abandonment by preventing fund diversion and guaranteeing that funds are used exclusively for construction.

3. Guarantees timely Possession

When registering with RERA, builders are required to include a clear project completion schedule. Developers are held more accountable if they are forced to compensate buyers for late deliveries.

4. Promotes Price Transparency

Developers are not allowed to charge more than what was originally specified in the sale agreement. To ensure there are no unexpected costs, the buyer must accept any modifications to the project plan or additional fees.

5. Decreases Disputes & Litigations

Buyer-developer disputes have drastically decreased once clear laws were put in place. By serving as mediators, RERA authorities settle disputes more quickly than through the traditional court system.

If you’re looking for a property in Mumbai, always opt for RERA-registered projects by top builders in Goregaon, Mumbai, to safeguard your investment and enjoy a seamless home-buying experience.

Here is the RERA Project Approval Example 

The Green Arc  Project By SSB Group Approved BY RERA
MahaRERA registration number: P51800055832, is available on the website https://maharera.mahaonline.gov.in under registered projects. The project is marketed as Passcode The Green Arc.

Why is RERA Registration Important?

RERA registration is not just mandatory for developers—it also benefits homebuyers significantly. Here’s why RERA registration is important:

1. Legal Protection for Buyers

Only RERA-registered projects can be legally sold or advertised. Buying in an unregistered project means higher risks of fraud or incomplete construction.

2. Access to Project Details

Developers are required by RERA to upload all project-related documents, such as:

1. Approved building plans

2. Land ownership details

3. Contractor agreements

4. Completion timelines

This allows buyers to verify all details before investing.

3. Ensures Quality Construction

RERA holds builders accountable for construction quality. If defects are found within five years of possession, the developer must fix them at no extra cost.

4. Faster Dispute Resolution

Each state has a RERA regulatory authority where buyers can file complaints against developers. These complaints are resolved within 60-90 days, much faster than traditional courts.

5. Boosts Buyer Confidence

Since RERA ensures transparency and accountability, more buyers are willing to invest in real estate, boosting the overall market growth.

Benefits of RERA for Homebuyers & Developers

For Homebuyers:

✅ No More delayed Possession: Builders must keep to their specified timelines.

✅ No Unexpected Fees: Prices cannot be raised at will.

✅ Legal Recourse: RERA authorities provide fast complaint resolution.

✅ Guaranteed Quality: For five years, builders are required to fix any structural flaws.

For Developers:

✅ Develops Trust: Projects with RERA approval draw in more buyers.

✅ Lowers Malpractices: Ethical developers have a benefit over fraudulent ones.

✅ Simplified Approvals: In particular states, projects can be cleared through one portal.

 Conclusion: RERA is changing the real estate industry.

The introduction of RERA in real estate has brought much-needed discipline and transparency to the sector. By understanding why RERA approval is required and why RERA registration is important, buyers can make informed decisions while developers can operate with greater credibility.

For homebuyers, RERA provides financial security, timely delivery, and legal protection. For developers, it ensures fair competition and long-term business growth. As RERA continues to evolve, it will further strengthen India’s real estate market, making it safer and more profitable for all stakeholders.Before investing in any property, always check RERA registration status to ensure a secure and hassle-free experience!

FAQ

1. Why is RERA important in real estate?

RERA (Real Estate Regulation and Development Act) is crucial in real estate because it brings transparency, accountability, and consumer protection to the sector.

2. What is the main objective of RERA?

Protect homebuyers from fraudulent practices.

  • Ensure timely delivery of projects.
  • Increase transparency by mandating project registration and disclosure of approvals.
  • Prevent fund diversion by requiring developers to deposit 70% of buyer funds in an escrow account.
  • Provide a grievance redressal mechanism for disputes between buyers and builders.



3. Is RERA approval necessary?

Yes, any residential or commercial real estate project with more than eight units or a land size more than 500 square meters requires RERA approval. Buying a property that has received RERA approval guarantees that the project complies with the law, lowering the possibility of fraud, delays, or legal issues.

4. What is RERA in simple words?

In simple terms, RERA makes buying property safer and more transparent.

5. Is RERA good or bad?

RERA is good for both homebuyers and genuine developers.


6. Why is the RERA Act important?

1.It protects homebuyers against delays and fraud.

2.It makes project approvals and price more transparent.

3. It makes builders answerable for finishing the project.