What is RERA and How Does It Impact Real Estate Transactions?
Introduction
The Indian real estate sector has long been one of the country’s largest industries, but it was also one of the least regulated before 2016. To bring transparency, accountability, and trust into the market, the government introduced the Real Estate (Regulation and Development) Act, 2016 (RERA).
For both home buyers and developers, RERA has transformed how property transactions happen. In this blog, Ambr Homes explains what RERA is, its key features, and how it impacts real estate buyers and builders in NCR and across India.
What is RERA?
RERA stands for Real Estate (Regulation and Development) Act, 2016 — a landmark law enacted by the Government of India to regulate the real estate sector and protect the interests of homebuyers.
Before RERA, buyers often faced delays, false promises, hidden charges, and lack of information about projects. RERA introduced a uniform structure across India where developers must disclose all project details and follow strict compliance norms before advertising or selling.
Each state has its own RERA Authority (like UP RERA, Haryana RERA, Maharashtra RERA, etc.) to oversee and manage registrations, grievances, and penalties.
Key Objectives of RERA
RERA was designed with three main goals in mind:
- Transparency: To make project information accessible to buyers — from approvals, layout plans, and carpet areas to possession timelines.
- Accountability: To ensure builders adhere to commitments and timelines, protecting buyers from fraudulent practices.
- Efficiency: To resolve disputes quickly through a specialized Real Estate Regulatory Authority and Appellate Tribunal.
Key Provisions of the RERA Act
Here are the major highlights of the RERA framework every homebuyer should know:
1. Mandatory Project Registration
All residential and commercial real estate projects (above a certain size) must be registered under RERA before being launched or advertised. Developers are required to upload:
- Approved plans & layout
- Carpet area & number of units
- Completion timelines
- Promoter’s details and financial disclosures
Without RERA registration, no builder can legally market or sell any unit.
2. Escrow Account for Buyer Payments
Developers must deposit 70% of all buyer payments into a separate escrow account, which can only be used for that project’s construction and land costs. This prevents misuse of funds and ensures on-time project completion.
3. Penalties for Delays
If a developer fails to deliver the project on time, RERA mandates compensation to buyers with interest for the delay — holding builders accountable for missed deadlines.
4. Accurate Definition of Carpet Area
Before RERA, builders often sold properties based on “super built-up” area, leading to confusion. RERA standardizes the definition of carpet area — the usable space within the walls of an apartment — ensuring buyers pay only for what they actually use.
5. Buyer’s Right to Information
Buyers have complete access to project information on the official RERA website, including construction status, approvals, and updates. Transparency is now a legal right.
6. Five-Year Structural Defect Liability
If a property develops structural defects or quality issues within five years of possession, the developer is legally bound to fix them at no extra cost to the buyer.
7. Dispute Resolution Mechanism
RERA establishes a fast-track dispute redressal system via RERA Authorities and Appellate Tribunals, ensuring buyers and developers get justice without long legal delays.
How RERA Impacts Homebuyers
RERA has made buying property in India — especially in metro regions like Noida, Greater Noida, and Delhi NCR — much safer and more transparent. Here’s how it benefits buyers:
Increased Trust: Buyers can now invest in projects registered under RERA with confidence.
Clear Information: All project details are available online.
Protection from Fraud: Developers cannot change layouts, increase prices, or delay possession without facing penalties.
Financial Safety: The 70% escrow rule prevents fund diversion.
Quality Assurance: Builders must fix structural defects up to 5 years post-handover.
How RERA Impacts Builders and Developers
For builders, RERA has introduced a culture of professionalism and discipline in the sector.
Here’s how it affects developers like Ambr Homes:
- Higher Credibility: Projects registered under RERA gain more trust and attract genuine buyers.
- Organized Process: Builders must maintain proper records, timelines, and compliance reports.
- Legal Clarity: RERA reduces conflicts and brings uniformity across the sector.
- Increased Competition: Transparent systems encourage quality development and innovation.
At Ambr Homes, all our ongoing and upcoming projects — Ambrosia Luxury, Amore, Aura, and Atlanta — are built on these same principles of transparency and compliance.
Why RERA is a Game-Changer for NCR Homebuyers
The NCR region, including Noida, Greater Noida, and Ghaziabad, has been one of India’s most active real estate markets. RERA has restored faith among homebuyers here by ensuring developers deliver what they promise.
Whether you are buying your first apartment or upgrading to a luxury home, RERA registration gives you:
- Verified project information
- On-time delivery assurance
- Legal protection in case of disputes
- Safe, structured payments
For buyers investing in Ambr Homes, every step is guided by the same ethics — trust, transparency, and timely delivery.
Final Thoughts
The introduction of RERA has redefined India’s real estate landscape, turning it into a more buyer-friendly, transparent, and efficient market. For developers, it encourages ethical practices; for buyers, it provides peace of mind.
At Ambr Homes Pvt Ltd, we strongly support the spirit of RERA — ensuring every project we build aligns with legal standards, environmental responsibility, and customer satisfaction.
When you invest in Ambrosia Luxury, Amore, Aura, or Atlanta, you’re not just buying a home — you’re choosing trust, comfort, and transparency for your future.