Introduction

The Real Estate (Regulation and Development) Act, or RERA (Real Estate Regulatory Authority), was introduced in 2016 to bring transparency, accountability, and efficiency to India’s real estate sector. It changed the way property transactions are handled, benefiting both buyers and developers.

RERA has addressed long-standing issues by offering protection to everyone involved—promoters, real estate agents, and buyers—through a secure set of regulations. These include regular updates on registered projects and ensuring a portion of funds is set aside for construction to prevent delays.

Since its introduction, around 22 states and 6 Union Territories have implemented RERA, with 19 states having active portals, showcasing its impact across India.

Key Features of RERA

1. Registration of Projects: All real estate projects (residential and commercial) above a certain size must be registered with the RERA authority. Unregistered projects cannot be marketed or sold.
2. Transparency in Project Information: Developers are required to provide detailed project information, including approvals, layout plans, and timelines. This information is available to buyers through the official RERA website.
3. Timely Project Completion: Developers must adhere to the timeline promised to buyers. In case of delays, they are liable to pay compensation.
4. Protection of Buyers’ Investment: To safeguard buyers’ investments, developers are mandated to keep 70% of project funds in a separate escrow account. This ensures that funds are used solely for project construction.
5. Clear Contractual Terms: RERA requires that the agreement between the buyer and developer outlines clear terms, reducing chances of unfair clauses that were previously common.
6. Grievance Redressal: Buyers can file complaints with the RERA authority in case of disputes. Each state has its own regulatory body, making grievance redressal faster and more effective.

RERA Act in Telangana

Promoters Guidelines

Under the Real Estate (Regulation and Development) Act 2016, promoters must register all commercial and residential projects with TGRERA (Telangana Real Estate Regulatory Authority), except in the following cases:

1. Small Projects: Land area is 500 square meters or less.
2. Limited Apartments: Up to 8 apartments total.
3. Pre-2017 Approvals: Building permissions granted before January 1, 2017.
4. Renovation or Repairs: No marketing, advertising, or selling of apartments, plots, or buildings involved.

Promoters cannot advertise or sell any property in Telangana without registering with TGRERA. Ongoing projects that haven’t received Completion Certificates must also register for phases without Occupancy Certificates. Ongoing projects exclude those with pre-2017 approvals.

Key facilities for promoters include:

• Registration of real estate projects
• Quarterly updates for each project
• Extension of Real Estate Projects
• Complaints filing process

Real Estate Agents Guidelines

Under the Real Estate (Regulation and Development) Act 2016, all real estate agents must register with TGRERA before helping with any sales. Promoters must include the names of registered agents when applying for their own registration. The agent registration is valid for five years and can be renewed.

Key facilities for real estate agents include:

• Registration of agents
• Renewal of registration
• Complaints filing process

Citizen Guidelines

Under the Real Estate (Regulation and Development) Act 2016, citizens can access the following services:

• File complaints
• Get online access to details about registered projects

Anyone affected can file a complaint with the Authority regarding violations of the Act or its rules related to registered real estate projects.

Impact of RERA on Buyers and Developers

For buyers, RERA has instilled a sense of security, ensuring that their investments are protected. The transparency and accountability enforced by the act have made it easier for people to trust developers. For developers, RERA has fostered a more structured approach to project planning, fund management, and delivery, which ultimately benefits the entire industry.