A country growing upward
India's skylines tell a story of ambition. Over the last few decades, our cities have grown outward and upward - townships where farmland once stood, apartment towers replacing single-storey homes, and entire new neighborhoods rising to house a rapidly urbanising population. This wasn't just construction. It was a country building its future, one project at a time.
Developers rushed to meet the demand. Buyers, eager to own a piece of this growth, queued up to book homes - sometimes years before a single brick was laid. Everyone was moving fast, and for a while, that speed felt like progress.
But like most rapid growth, this pace came with cracks nobody had accounted for.
So, as demand grew, so did the number of projects launching across cities. Some projects remained under construction due to legal or financial complications, leaving buyers’ money locked in and possession delayed to uncertain dates.
Adding to the confusion, different projects were sold in different ways - some on carpet areas, some on super built-up area. Carpet area gave buyers a clear sense of usable space, unlike this, the super built-up area gave confusion on what was the actual carpet area, with no authentic platform to verify what was actual carpet area of purchased property. Then a framework arrived in 2016, as the Real Estate (Regulatory and Development) Act, commonly known as RERA. It brought clarity to pricing, accountability to timelines, and a way for buyers to verify claims instead of simply hoping they held true.
What is RERA?
RERA gave India's real estate sector something it had never had before: a rulebook, and a referee to enforce it.
- Each state set up its own Real Estate Regulatory Authority (e.g., MahaRERA, UP-RERA, GujRERA, K-RERA)
- Real Estate Appellate Tribunals provide a mechanism for hearing appeals against orders of the RERA Authority and adjudicating officer, as provided under the Act.
- Real estate projects generally require RERA registration unless they fall under an applicable exemption, such as projects where the land area does not exceed 500 sq. metres or the number of apartments does not exceed eight, subject to applicable state rules.
- Real estate agents and brokers dealing in such projects must also register
After RERA was introduced, buyers had a way to verify claims instead of simply trusting them.
For a detailed overview of RERA, its key provisions, and how it protects homebuyers, read our guide on What is RERA?
What a RERA-Registered Project Must Disclose
Every registered project - checkable against the relevant state RERA site, such as GujRERA for Gujarat - must make the following public:
- RERA registration number, displayed on all advertisements
- Land records and title documents, proving the builder actually owns/has clear rights to the land
- All government permissions and approvals
- Approved building plans and layouts
- Project brochure
- Agreement to Sale (ATS) and Sale Deed templates
- RERA carpet area for every unit - not super built-up or saleable area
- Promoter/developer details
- Unit-wise inventory availability
- Escrow bank account details
- Project financial status
- Construction progress updates, published periodically
In short: a buyer can independently verify almost everything about a project before paying a single rupee.
The Protections Buyers Finally Got
RERA gave buyers enforceable rights.
Escrow Account (70% Rule)
70% of the money collected from buyers must sit in a separate escrow account, usable only for that project's construction and land costs - not diverted elsewhere. Withdrawals require certification from an engineer, architect, and chartered accountant matching actual construction progress.
RERA Carpet Area
Buyers could finally verify the actual usable space they were paying for, instead of relying on super built-up or saleable area figures. Pricing based on RERA carpet area gave buyers a clear, standardized "apples-to-apples" rate per sq. ft. across different projects.
“RERA Carpet Area” means the net usable floor area of an apartment, shop, showroom & offices excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive terrace area, but includes the area covered by the internal partition walls of the apartments.
Timely Possession, or Compensation
Developers must commit to a completion date. If they miss it, they're legally required to pay interest or compensation to affected buyers.
5-Year Defect Liability
If structural defects or any other defect in workmanship, quality, provision of services, or other obligations of the promoter under the Agreement for Sale are reported within five years of possession, the promoter must rectify them without further charge.
Payment Cap Before Agreement to Sale
A builder can collect a maximum of 10% of the property's cost as advance/application fee before a formal Agreement to Sale is signed - protecting buyers from being locked into large payments before terms are finalized.
Grievance Redressal
Buyers can file a complaint directly with the state RERA authority - with legal weight behind it.
What is a Non-RERA Property & Why is it Exempt
Not every project needs RERA registration, and that's by design, not a loophole:
- Projects smaller than the threshold above
- Projects for which the promoter had received a completion certificate before the commencement of RERA
- Renovation or repair work that doesn't involve new sale, marketing, or allotment
A genuinely small project, or one that received its Building Use (B.U.) permission/Occupancy Certificate before RERA came into force, is exempt for entirely legitimate reasons. The key is verifying why a specific property isn't registered.
When comparing properties, buyers can also explore options across popular Ahmedabad locations such as Shela, South Bopal, and Gota.
RERA vs Non-RERA: The Simple Vital Space Verdict
Buying something built or completed before 2017? That is a Non-RERA property. Your safeguard here is the traditional route: verify title clearance and ownership documents directly with the owner/seller, physically inspect the property, and buy with full transparency on your side.
Buying a new, under-construction property? This is where RERA comes to the picture. You can check the project's registration, RERA carpet area, and other documents on the official portal. If you are comparing new developments, you can also explore new residential projects in Ahmedabad and verify their RERA details before shortlisting a property.
RERA didn't just add paperwork to real estate - it rebuilt the foundation of trust between builders and buyers. At Vital Space, we understand a home isn't just an investment. It's a decision that deserves to be made with clarity, not crossed fingers. So before you commit to any property - ask, verify, and only then, invest.
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Disclaimer: This blog is prepared for general informational and educational purposes only. The content has been compiled from the publicly available news articles on the subject. It does not reflect the independent opinions, claims, or interpretations of Vital Space, and should not be relied upon as legal, financial, or investment advice. Laws, rules, and their application may vary by state and may change over time. Readers are advised to independently verify all information on their respective state's official RERA website and to consult a qualified legal professional before making any property related decision.
