Definition
RERA
RERA, the Real Estate (Regulation and Development) Act, is the Indian law that regulates the property sector to protect home-buyers and bring transparency and accountability to builders.
Under RERA, developers must register projects with the state regulator before advertising or selling, disclose project details and timelines, deposit a portion of buyer funds in a dedicated account to prevent diversion, and sell on the basis of carpet area rather than inflated super built-up area. It also sets up an authority and appellate tribunal to resolve buyer grievances.
For buyers, RERA brought real protection against delayed possession, misleading marketing and fund misuse that long plagued the sector. Before buying an under-construction home, checking the project's RERA registration on the state regulator's website — including approvals, layout and promised completion date — is an essential first step.
Related terms
- Carpet AreaCarpet area is the actual usable floor area within the walls of a flat — the space you can lay a carpet on — excluding the thickness of walls and common areas.
- Under-Construction PropertyAn under-construction property is a home still being built and not yet ready for possession, usually bought from a developer before completion.
- Occupancy CertificateAn occupancy certificate (OC) is a document issued by the local authority certifying that a building is complete as per approved plans and is safe and legal to occupy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.