BUYER PROTECTION
Everything you need to know to buy property safely in India
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark legislation enacted by the Parliament of India to protect the interests of home buyers and bring accountability and transparency to the real estate sector. Before RERA, Indian real estate was largely unregulated — developers could delay projects for years, divert funds, and make false promises with minimal accountability. RERA fundamentally changed this by requiring mandatory registration of projects and agents, creating a dispute resolution mechanism, and ensuring financial discipline through escrow requirements. RERA is administered at the state level — each state has its own RERA Authority and portal. As a buyer, understanding RERA is your most powerful tool for safe property purchase.
RERA guarantees these fundamental protections
You are entitled to all project information — approved plans, layout, specifications, schedule of possession, and the names of contractors. Developers must make all approvals publicly available on the RERA portal.
Payments must be linked to construction milestones, not arbitrary developer demands. No developer can demand more than 10% as advance without a registered sale agreement.
The developer must hand over possession by the date stated in the sale agreement, registered with RERA. Any extension requires the buyer's written consent.
If the developer fails to deliver possession by the agreed date and you choose to exit, you are entitled to a full refund of all amounts paid along with interest at the SBI MCLR + 2% per annum.
You can file a complaint directly on the state RERA portal against a developer or agent. Complaints must be resolved within 60 days of registration.
After formation of the Residents Welfare Association (RWA), the developer must hand over maintenance of common areas, infrastructure, and facilities as per the agreed specifications.
Follow these steps before making any payment
Visit your state's official RERA portal and search for the project by name or RERA registration number. The platform may display a RERA number, but always verify it directly on the official government portal.
Verify that the registration is "Active" and not "Lapsed" or "Revoked." Check the registration expiry date — it should cover your expected possession date. Review the approved building plans and layout.
All real estate agents are required to register with RERA. Ask your agent for their RERA registration number and verify it on the state portal. Never deal with an unregistered agent.
Review the quarterly progress reports submitted by the developer. Check if construction is progressing as declared, percentage of units sold, and any complaints filed against the project or developer.
Obtain an Encumbrance Certificate (EC) from the Sub-Registrar's office for the past 30 years. Engage a qualified property lawyer for a title search. Verify land ownership documents, conversion orders, and local authority approvals.
Walk away if you notice any of these warning signs
Any residential project above 500 sq.m. or 8 units that cannot provide a valid RERA registration number is operating illegally. This is a criminal offence under RERA.
A price that is 20–30% below comparable properties in the area is a major red flag — it may indicate distress, title disputes, illegal construction, or fraud.
An agent who refuses to provide their RERA registration number, or whose registration cannot be verified on the state portal, may not be legitimate.
If the developer or seller cannot produce clear title documents — mother deed chain, encumbrance certificate, mutation records — walk away immediately.
Requests for cash payments or unofficial "black money" components are illegal under the Prevention of Money Laundering Act and can have serious legal and tax consequences for the buyer.
Verify that the building plan is approved by the local authority (GHMC/BDA/BBMP/MCGM). Unapproved constructions risk demolition orders.
Legitimate developers never pressure buyers to sign agreements within hours. High-pressure sales tactics often mask problems with the project.
Any sale agreement that does not specify a clear, legally binding possession date with RERA-compliant penalty clauses is a significant risk.
| Term | Definition |
|---|---|
| Encumbrance Certificate (EC) | A document issued by the Sub-Registrar's office certifying that a property is free from any registered monetary or legal liabilities over a specified period. Essential for establishing clear title. |
| Sale Deed | The primary legal document that transfers ownership of a property from seller to buyer. Must be registered at the Sub-Registrar's office and stamp duty paid. The title is not transferred until registration. |
| Khata Certificate | A document issued by the local municipal body (e.g., GHMC in Hyderabad, BBMP in Bengaluru) that records the owner's name in municipal records and is required for property tax payment and utility connections. |
| Occupancy Certificate (OC) | Issued by the local authority after inspecting a completed building to confirm it was constructed per approved plans and is safe for occupation. Never take possession of a flat without a valid OC. |
| Completion Certificate (CC) | Issued by the local authority when all construction is complete and complies with sanctioned plans. Some states issue a combined OC/CC. |
| Title Search Report | A legal opinion prepared by an advocate examining the chain of ownership documents for a property over 30 years, to confirm clear and marketable title free from encumbrances. |
| RERA Registration Number | A unique identifier assigned to a real estate project upon registration with the state RERA authority. Required to be displayed in all advertisements, brochures, and agreements. |
| Carpet Area | The net usable floor area within the walls of an apartment, as defined under RERA. Excludes walls, balconies, and common areas. Sale agreements must be on carpet area basis. |
| Undivided Share (UDS) | The proportional share of the land that a flat owner holds in common with other owners in a multi-storey building. The UDS should be clearly mentioned in the sale deed. |
| Tripartite Agreement | An agreement between the developer, buyer, and bank/financial institution, executed when the buyer takes a home loan. Ensures the lender's security interest in the property. |
Our team of legal experts and verified agents can guide you through every step — from RERA verification to registration.
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