What is RERA approval, really?
Why was RERA introduced in the first place?
And more importantly, what actually happens if a builder delays possession under RERA?
These aren’t abstract legal questions. Instead, they’re deeply personal ones. Because when you buy property, you’re not just signing papers — you’re committing savings, loans, and years of planning.
Therefore, understanding RERA isn’t optional. It’s essential.
And that’s exactly why RERA matters.
So, What Is RERA?
Simply put, RERA stands for Real Estate (Regulation and Development) Act, 2016.
In other words, it is a law created to protect homebuyers and bring transparency into the real estate sector.
More specifically, each state has its own RERA authority. As a result, builders must register their projects before selling units. In addition, buyers can check project details publicly through official portals.
On the surface, that seems procedural.
However, the real impact goes much deeper.
Before RERA: What Property Buying Used to Feel Like
To understand why RERA is important, we first need to look backward.
Before RERA came into effect in 2016, property buying in India was often uncertain. In fact, many buyers booked apartments based largely on brochures and verbal promises. However, delivery timelines frequently extended beyond the committed date.
As a result, frustration became common.
If you’ve ever met someone who waited 3–5 extra years for possession, then you already know the emotional toll.
For example, one of my clients once told me:
“We booked in 2012. They said 36 months. We moved in 2018.”
At first, that sounds like a delay. However, in practical terms, it meant paying rent and EMI together for years. Consequently, financial pressure increased. Meanwhile, emotional stress compounded.
Therefore, something had to change.
And that environment is exactly why RERA was introduced.
Why RERA Was Needed (And Why RERA Is Important)
Let’s address the core question directly.
Why RERA?
Primarily, buyers needed protection.
Before RERA:
- Builders could change project layouts without buyer approval.
- Funds from one project could be diverted to another.
- Delivery timelines were flexible.
- Complaint mechanisms were unclear.
As a consequence, trust levels dropped significantly.
Moreover, buyers had limited legal leverage.
RERA changed that structure.
Under RERA rules:
- Builders must deposit 70% of project funds in a separate escrow account.
- Project details must be registered and disclosed.
- Delivery timelines are legally defined.
- Buyers can file complaints with the RERA authority.
Most importantly, accountability became enforceable.
Therefore, buyer confidence gradually improved.
And confidence, ultimately, drives the real estate market.
What Is RERA Approval?
Now let’s clarify something many people misunderstand.
What is RERA approval?
Essentially, a RERA approved project means the builder has officially registered the project with the state RERA authority.
To receive RERA approval, a developer must provide:
- Land ownership documents
- Project layout plans
- Completion timelines
- Financial disclosures
- Architect and contractor details
Only after verification does the authority issue a RERA registration number.
Subsequently, buyers can verify this number online. Therefore, transparency becomes public, not optional.
In contrast to earlier practices, hidden details are harder to conceal.
And that transparency? It matters far more than glossy advertisements.
What Happens If Builder Delays Possession Under RERA?
Now, let’s come to one of the most searched concerns.
What happens if builder delays possession RERA?
Under RERA rules, if a builder delays possession beyond the promised date, the buyer has legally defined rights.
Specifically, the buyer can:
- Withdraw from the project and claim a refund with interest.
- Continue with the project and claim interest for the delay period.
Importantly, that interest is calculated based on defined rates (often linked to SBI MCLR plus a percentage).
In earlier times, buyers struggled for compensation. However, now a legal framework exists.
That said, not every case resolves instantly.
Nevertheless, the power balance has shifted.
Earlier, buyers depended entirely on builder goodwill. Now, they have statutory backing.
Consequently, developer behavior has become more structured.
What Are the Benefits of a RERA Approved Project?
Let’s move from theory to practicality.
What are the benefits of RERA approved project?
First and foremost — transparency.
Buyers can check:
- Carpet area details
- Construction progress
- Legal approvals
- Completion updates
Secondly — financial discipline.
Since 70% of collected funds must remain within the project, diversion risks reduce significantly.
Thirdly — defined timelines.
Because delivery dates are legally declared, extensions are no longer casual.
Fourth — formal grievance redressal.
If disputes arise, buyers can approach RERA authorities instead of navigating endless informal channels.
Now, does RERA eliminate every risk? Certainly not.
However, it dramatically reduces unpredictability.
And in real estate, predictability is everything.
A Real Buyer Scenario
Over time, I’ve noticed something interesting.
Many of my clients who shifted from non-RERA projects to RERA-approved ones share a similar sentiment.
They say:
“It just feels safer.”
Not because delays never happen.
But because information is visible.
When buyers can track progress online, they feel informed. Moreover, they feel empowered.
Psychologically, that changes everything.
And that difference, frankly, matters more than most marketing campaigns.
Is Every RERA Approved Project Automatically Safe?
This is where nuance is important.
Although RERA approval improves transparency, it does not automatically mean:
- The builder is financially strong.
- The project will never face delays.
- Prices will rise sharply.
In reality, RERA ensures regulatory compliance — not guaranteed profitability.
Therefore, due diligence remains essential.
You should still evaluate:
- Developer track record
- Location fundamentals
- Demand–supply balance
- Payment structure
Think of RERA as a seatbelt.
While it doesn’t prevent every accident, it significantly improves safety during impact.
Why RERA Is Important for Long-Term Investment ?
Even if you are investing rather than end-using, RERA remains relevant.
Why?
Because markets value structure.
When legal frameworks improve transparency, buyer confidence rises. Consequently, transaction volumes improve. Over time, institutional investors participate more actively.
As a result, the sector becomes more stable.
And stable markets attract serious capital.
Therefore, RERA is important not only for individuals — but for the industry as a whole.
Buying property is not just a transaction.
Instead, it is a long-term commitment. Moreover, it represents financial leverage. At the same time, it offers emotional security.
RERA was introduced to bring discipline into a sector that urgently needed structure.
Is it perfect? No.
However, compared to the pre-2016 environment, it represents significant progress.
If you’ve ever heard stories of decade-long delays or sudden layout changes, then you understand why regulation matters.
Ultimately, trust is the foundation of real estate.
And regulation, when implemented properly, strengthens that foundation far more than marketing promises ever could.
FAQs
- What is RERA in simple words?
RERA is a real estate regulation law in India that protects homebuyers by ensuring project transparency and accountability from builders.
- What is RERA approval?
RERA approval means the project is registered with the state RERA authority and complies with required legal disclosures and regulations.
- Why RERA is important for buyers?
RERA ensures defined timelines, escrow fund management, project transparency, and legal complaint mechanisms for buyers.
- What happens if builder delays possession RERA?
If a builder delays possession, buyers can either withdraw and claim refund with interest or continue and claim interest for the delay period.
- What are the benefits of RERA approved project?
Benefits include financial transparency, defined possession timelines, online verification of details, and legal recourse in case of disputes.
