How RERA Has Changed the Real Estate Landscape in India

Introduction

The Real Estate (Regulation and Development) Act, commonly known as RERA, came into effect on May 1, 2017, marking a historic shift in India’s real estate sector. Designed to bring transparency, accountability, and efficiency, RERA has fundamentally transformed how the industry operates—for builders, agents, and most importantly, homebuyers.

Before RERA: An Unregulated Maze

Prior to RERA, the real estate market was largely unregulated and opaque. Buyers faced:

• Delays in possession with no legal recourse.

• False promises about project specs, amenities, or approvals.

• No standard format for agreements or payment terms.

• Lack of transparency on project status, land titles, or builder credentials.

This resulted in diminished trust, stalled projects, and frequent litigations.

Key Changes RERA Brought

1. Mandatory Registration of Projects

RERA mandates registration of all real estate projects over 500 sq. meters or with 8+ apartments. This brought thousands of projects under a regulatory umbrella, forcing builders to disclose:

• Land titles

• Project plans and approvals

• Timeline for completion

• Financial details

2. Escrow Account for Buyer Payments

Developers are now required to deposit 70% of collected funds into a dedicated escrow account, ensuring that money is used only for that specific project—reducing fund diversion and improving project delivery.

3. Accountability for Project Delays

If a builder delays possession, RERA gives the buyer the right to compensation, interest, or a full refund. This has made timelines more realistic and binding.

4. Transparent Online Portals

Each state RERA authority hosts a portal where buyers can:

• Verify project details, approvals, and completion timelines.

• View complaints filed and judgments.

• Check developer track records and agent registrations.

This has introduced an unprecedented level of transparency.

5. Standardized Agreements

No more one-sided builder agreements. RERA enforces a model agreement for sale that protects the buyer from unfair clauses.

6. Fast-Track Dispute Resolution

Disputes are now resolved within 60 days by RERA authorities or via conciliation forums. This is faster and cheaper than traditional court battles.

Impact on Stakeholders

For Homebuyers:

• Greater confidence and clarity when investing.

• Legal protection against delays and fraud.

• Easy access to authentic project data.

For Builders & Developers:

• Pressure to deliver on time.

• Must maintain clear documentation and approvals.

• More cautious and ethical marketing practices.

For Real Estate Agents:

• Need to register under RERA to legally operate.

• More accountability and professionalization of the brokerage sector.

Conclusion

RERA has undeniably revolutionized real estate in India. It has transformed the market from a builder-driven model to a buyer-centric ecosystem, restoring trust and encouraging responsible development. While there’s room for refinement, the Act has laid a solid foundation for a transparent and fair real estate future.