The Role of RERA in Protecting Home Buyers – What Every Realtor Must Know

Buying a home has always been a dream for Indian families. But for many years, that dream often came with sleepless nights. Delayed projects, hidden costs, false promises, and unclear documentation made buyers nervous, and unfortunately, many ended up losing time, money, or peace of mind. Realtors too were caught in the middle—trying to manage expectations while dealing with unregulated builders.

This changed in 2016, when the Real Estate (Regulation and Development) Act, RERA was introduced. For the first time, India had a dedicated law to regulate real estate, protect buyers, and bring accountability to builders and agents.

Today, RERA is not just a legal requirement—it’s the foundation of trust in real estate. For realtors, knowing and following RERA is essential for credibility, compliance, and long-term success.

Why RERA Was Introduced

Before RERA, buyers faced several problems:

• Builders delayed projects for years without penalties.

• Advances paid by buyers were often diverted to other projects.

• Properties were sold without proper approvals.

• Buyers had little legal recourse if something went wrong.

• Realtors operated without a clear framework, leading to mistrust.

RERA was introduced to solve these issues by making the entire real estate process transparent and accountable.

Key Provisions of RERA Realtors Must Know

1. Mandatory Registration

   • All projects above 500 sq. meters or 8 apartments must be registered with RERA before being marketed or sold.

   • All real estate agents must also register with RERA to operate legally.

2. Advance Payment Protection

   • Builders cannot take more than 10% of the property’s cost as booking advance without signing a registered agreement for sale.

3. Use of Funds

   • 70% of the money collected from buyers must be kept in a dedicated account, used only for construction and land costs of that project.

4. Timely Delivery

   • If a builder delays possession, they must compensate buyers or pay interest until handover.

5. Transparent Advertising

   • No project can be marketed without RERA registration, and advertisements must clearly mention the registration number.

6. Defect Liability

   • Builders must fix any structural defects in the property for up to 5 years after possession, without additional charges.

7. Quick Dispute Resolution

   • Buyers can approach RERA for complaints, which must be resolved within 60 days.

Penalties for Realtors

RERA is strict not only with builders but also with agents. Realtors must understand the risks of non-compliance:

• Unregistered Agent: Operating without RERA registration can lead to penalties of ₹10,000 per day, up to 5% of the property value.

• False Information: Misleading buyers or promoting unregistered projects can lead to heavy fines and cancellation of registration.

• Non-Compliance: Failure to follow RERA orders may result in fines up to ₹5 lakh, or imprisonment in extreme cases.

For a realtor, this is a clear message—compliance is not optional, it’s mandatory.

How RERA Protects Home Buyers

For buyers, RERA has been a blessing. It ensures:

• Security of money (funds can’t be misused).

• Transparency in pricing and approvals.

• Timely possession or compensation in case of delay.

• Legal remedy through RERA authorities.

• Confidence that they are dealing with registered, accountable agents.

When a buyer sees that you, as a realtor, are RERA-registered and only deal in registered projects, it immediately builds confidence.

How Realtors Can Use RERA to Build Trust

Many realtors see RERA as just paperwork. In reality, it’s a powerful trust-building tool. Here’s how:

• Educate Buyers: Explain what RERA is and how it safeguards their interests.

• Show Transparency: Always highlight the RERA registration number in your marketing materials.

• Guide Clients: Help buyers check project details on the state RERA website.

• Be a Compliance Partner: Position yourself as someone who ensures safe and legal transactions.

By doing this, you don’t just close deals—you build lifelong relationships.

A Real-Life Example

Take the case of a buyer in Bhubaneswar who booked a flat in 2018. The builder delayed possession endlessly. Earlier, the buyer would have been helpless. But under RERA, the buyer filed a complaint with Odisha RERA. The builder was ordered to pay interest on the delay until handover.

The buyer not only got financial relief but also justice. Realtors who guided such buyers became trusted advisors, earning referrals and long-term goodwill.

Why Realtors Benefit from RERA Too

At first glance, RERA looks like a law made only to protect buyers. But realtors benefit in many ways:

• Clarity and professionalism improve the industry’s image.

• Reduced disputes with buyers because of transparent processes.

• Better builder relationships, since only compliant projects can be marketed.

• Competitive advantage over unregistered brokers.

In short, RERA separates professional realtors from casual brokers.

Tips for Realtors to Stay RERA-Compliant

1. Register Yourself: Ensure your RERA license is valid and renewed on time.

2. Work Only on Registered Projects: Never promote an unregistered property.

3. Use RERA Number in Marketing: Display it on ads, brochures, and online listings.

4. Keep Documentation: Maintain proper records of deals and client communications.

5. Stay Updated: Attend training sessions or workshops on RERA rules.

 

RERA has changed the way real estate works in India. For buyers, it is a shield of protection. For builders, it’s a discipline mechanism. And for realtors, it is a chance to rise as true professionals who operate with transparency and credibility.

As a realtor, RERA is not your obstacle—it is your strongest ally. It helps you stand out from unregistered brokers, win client trust, and ensure that every transaction is safe and legal.

So, the next time a client asks, “Why should I work with you?”, your answer is simple:

👉 “Because I am a RERA-registered realtor, and my job is not just to sell property—it is to protect your dreams.”