Buying a home is one of the biggest financial decisions most people make in their lifetime. Whether it's a 3BHK flat in the city or a luxurious 4 BHK apartment in a developing region like Noida Extension, it's a dream that involves years of savings, emotions, and planning.

 

But until a few years ago, the Indian real estate sector was largely unregulated. Homebuyers were often at the mercy of builders, with issues like delayed possession, unclear documentation, false promises, and hidden charges. That's where RERA came into the picture — a revolutionary act to bring transparency, accountability, and security to the real estate market in India.

 

In this blog, we’ll explain What RERA is, why it was introduced, and why it is important for homebuyers, especially those planning to invest in emerging real estate markets like Greater Noida West (Noida Extension).

 

What is RERA?

 

RERA, short for the Real Estate (Regulation and Development) Act, 2016, is a law passed by the Indian Parliament to regulate the real estate sector and protect the interests of homebuyers.

 

It came into effect on 1st May 2017, and every state in India was instructed to set up its own RERA authority to implement the rules under this act.

 

The primary aim of RERA is to bring transparency and accountability in the real estate sector and to ensure that both buyers and builders follow a standard framework.

 

Key Objectives of RERA

 

Here are the main objectives of the RERA Act:

 

1. Protect the interest of homebuyers

2. Regulate the real estate sector

3. Promote transparency in property transactions

4. Ensure timely delivery of projects

5. Create a legal mechanism for dispute resolution

6. Improve confidence in the housing market

 

 Key Features of RERA

 

Let’s look at some of the key features that make RERA a game-changer for the Indian real estate market:

 

 1. Mandatory Project Registration

 

Builders must register their projects with the state RERA authority before starting any marketing or selling activities. Without registration, no project can be legally promoted.

 

For example, if you're considering a project like Renox Thrive in Noida Extension, you can check its RERA number on the official Uttar Pradesh RERA website to verify its authenticity.

 

2. Standardized Carpet Area

 

Before RERA, there was no clear definition of what “carpet area” meant. Now, RERA defines carpet area as the actual usable floor area inside the walls — excluding balconies, terraces, etc. This helps prevent builders from overcharging based on super built-up area.

 

 3. Timely Delivery of Projects

 

One of the most common complaints from homebuyers was project delays. Under RERA, if the builder fails to deliver the project on time, they are liable to pay interest on the amount paid by the buyer.

 

4. Escrow Account for Funds

 

Builders must deposit 70% of the project funds into an escrow account. This money can only be used for that specific project, preventing diversion of funds to other developments.

 

 5. Penalties for Builders

 

If a builder violates the rules of RERA or fails to deliver on promises, they can face heavy penalties, suspension of license, or even imprisonment. This ensures a strong check-and-balance system.

 

6. Right to Information

 

Homebuyers have the right to access complete project details like layout, approvals, construction status, timelines, etc., all available on the RERA website.     

 

Why RERA is Important for Homebuyers

 

Here’s how RERA brings peace of mind to homebuyers across India:

 

1. Greater Transparency

 

Builders must share project status, legal approvals, completion timelines, and financial records. You can track all this on the official state RERA website.

 

2. Legal Protection

 

If a builder delays possession, changes layout, or fails to deliver as promised, you can file a complaint and demand:

 

• Compensation

• Refund with interest

• Legal action against the builder

 

3. No More False Promises

 

With RERA in place, builders must deliver what they advertise. From carpet area to amenities — all details are legally binding.

 

4. Clear Pricing

 

No more confusion over carpet vs built-up area. You only pay for what you get, and there are no hidden charges allowed.

 

5. Timely Possession

 

One of the biggest benefits of RERA is timely delivery. Builders know that delays can lead to heavy penalties and even suspension of their registration.

 

6. Exit Option for Buyers

 

If the builder violates terms or delays possession, buyers can opt-out of the project and claim a full refund, which wasn’t possible earlier.

 

Conclusion

 

RERA has brought much-needed discipline into the Indian real estate sector. For buyers, it ensures legal protection, on-time delivery, project transparency, and financial security.

 

So whether you're planning to invest in a high-rise apartment in Noida Extension or a villa in another city, always choose a RERA-registered project.

 

Projects like Renox Thrive by Renox Group offer not just comfort and luxury, but also the assurance of 100% RERA compliance, giving you a safe and secure start to your homeownership journey.

 

Commonly asked questions  

 

Q1. Is RERA applicable to all real estate projects?

 

RERA is applicable to residential and commercial projects of 500 sq. meters or more, or where the number of apartments is more than 8.

 

Q2. Can I trust a builder if the project is RERA registered?

 

Yes, a RERA-registered project indicates that the builder has followed legal guidelines. It builds credibility and reduces buyer risk.

 

Q3. How does RERA help if a project is delayed?

 

The builder must pay interest on the paid amount to the buyer for every month of delay or refund the full amount with interest.

 

Q4. Are all builders registered under RERA?

 

Only those launching new projects after May 2017 are mandatorily required to register under RERA.