Buying a property is one of the biggest financial decisions you will make in your lifetime.
If you’re considering investing in Bangalore’s real estate market, understanding RERA (Real Estate Regulation and Development Act), 2016 is crucial.
RERA was introduced to bring transparency, accountability, and efficiency to the real estate sector.
In this article, we will explore what RERA is, why it matters when buying property in Bangalore, and how it protects homebuyers.
Understanding RERA: What is RERA?
RERA is a landmark law enacted by the Indian government in 2016 to regulate the real estate sector and protect buyers from unethical practices by developers.
The act applies to all residential and commercial projects above a specified size and requires developers to register their projects with the RERA authority before advertising or selling them.
In Karnataka, the regulatory authority is Karnataka RERA (K-RERA), which ensures compliance with the act’s provisions within the state, including Bangalore.
Why RERA Matters When Buying Property in Bangalore
1. Transparency in Real Estate Transactions
Before RERA, developers often misled buyers regarding project approvals, timelines, and amenities. With RERA in place, developers are legally bound to provide accurate information about their projects, including layout plans, completion dates, and legal clearances. Buyers can access these details on the Karnataka RERA website, ensuring complete transparency.
2. Project Registration and Legal Compliance
Under RERA, all real estate projects exceeding 500 square meters or involving more than eight apartments must be registered with the state regulatory authority. This registration ensures that the project has all necessary legal approvals, reducing the risk of fraud or project delays.
Before investing, always check if the project is RERA-registered by visiting the K-RERA website (https://rera.karnataka.gov.in/) and verifying the details.
3. Protection Against Project Delays
One of the most common issues faced by homebuyers in Bangalore was project delays. Developers often failed to deliver projects on time, causing financial and emotional stress.
With RERA, builders must provide a completion timeline and are liable to pay compensation to buyers if the project is delayed. This ensures that homebuyers no longer suffer from indefinite waiting periods.
4. Standardized Sale Agreements
RERA has introduced a model sale agreement, reducing the chances of one-sided contracts favoring developers. It mandates clear terms regarding project completion, payment schedules, penalties for delays, and refund policies.
Buyers should always review the sale agreement carefully and ensure it aligns with RERA norms before signing.
5. Fair Pricing Through Carpet Area Definition
Earlier, developers often misled buyers by selling properties based on super built-up area, which included common areas like lifts, corridors, and clubhouses. RERA has now made it mandatory for properties to be sold based on carpet area, which refers to the actual usable space within an apartment.
This regulation ensures that buyers pay only for the space they will use, making property pricing more transparent.
6. Escrow Account for Fund Management
To prevent developers from diverting funds from one project to another, RERA mandates that 70% of the funds collected from buyers must be deposited into a separate escrow account. This money can only be used for construction and project development, ensuring that developers complete projects as promised.
This provision safeguards buyers from stalled or abandoned projects due to fund mismanagement.
7. Faster Dispute Resolution
If a dispute arises between a homebuyer and a developer, RERA provides a fast-track grievance redressal system. Buyers can file complaints with the RERA authority, which is required to resolve disputes within 60 days.
This provision is a major relief for homebuyers, as traditional legal proceedings could take years to resolve real estate disputes.
How to Check if a Property is RERA-Registered in Bangalore
Before finalizing a property purchase, follow these steps to verify if it is RERA-approved:
- Visit the Karnataka RERA website (https://rera.karnataka.gov.in/)
- Click on ‘Registered Projects’
- Enter the project name or developer details
- Check the project’s registration status, legal approvals, and timeline
This simple step can save you from potential fraud and ensure that your investment is legally secure.
Key Benefits of Buying a RERA-Approved Property
- Assurance of timely delivery
- Transparency in legal approvals
- Fair pricing based on carpet area
- Legal protection in case of disputes
- Financial security through escrow accounts
How Proptals Can Help You Find RERA-Compliant Properties in Bangalore
At Proptals, we specialize in helping homebuyers find RERA-approved properties that offer the best value for investment.
Our services include:
- Property consultation to help you choose the right project
- Verification of legal approvals and RERA registration
- Assistance in negotiating the best deal
- End-to-end support until you get possession of your home
We ensure that you make a safe, informed, and profitable real estate investment in Bangalore.
Understanding RERA: Conclusion
RERA has significantly transformed the real estate industry in Bangalore by making it more transparent and buyer-friendly.
Whether you’re a first-time homebuyer or an investor, understanding RERA and choosing a RERA-approved property safeguards your money and gives you peace of mind.
Before making any property purchase, always verify the project’s RERA registration and ensure compliance with the act.
If you need expert guidance, Proptals is here to assist you in making the right real estate investment decision.
Are you planning to buy a property in Bangalore?
Contact Proptals today for expert assistance in finding the best RERA-compliant properties!