What is RERA?
The Real Estate (Regulation and Development) Act, 2016 requires developers to register real estate projects with the state's RERA authority before advertising, marketing, or selling units, particularly for under-construction properties above a specified size threshold. Registration mandates disclosure of project details, timelines, and requires a defined percentage of buyer funds to be held in a dedicated escrow account for construction use.
Why Lenders Care About RERA Registration
Most lenders will not finance a purchase in an under-construction project that lacks valid RERA registration, since registration is a proxy for legal compliance and project legitimacy. Loan approval for under-construction properties typically requires the RERA registration number to be quoted in the sale agreement and verified independently by the lender's legal team.
How to Verify a Project's RERA Status
- Visit your state's official RERA portal (each state maintains its own).
- Search using the project name, developer name, or RERA registration number quoted in your sale agreement.
- Check the registered completion date, approved layout, and any complaints or orders listed against the project.
- Cross-verify that the unit and tower you're purchasing are actually covered under the registered project.
RERA & Construction-Linked Disbursement
For under-construction properties, lenders disburse loan amounts in tranches tied to construction milestones rather than as a lump sum. RERA's escrow requirement (typically 70% of buyer receipts held for construction and land costs) is designed to ensure developers use buyer and lender funds for the specific project, reducing the risk of fund diversion that historically caused project delays.
Buyer Protections Under RERA
- Developers must deliver possession by the date committed in the registered agreement, or pay interest/compensation for delays.
- Carpet area (not super built-up area) must be clearly and accurately disclosed and charged.
- A defect liability period (commonly 5 years) requires the developer to fix structural defects free of cost.
- Buyers can approach the state RERA authority for grievance redressal without necessarily going through lengthy civil litigation.
Red Flags to Watch For
- Developer unable or unwilling to share a valid RERA registration number.
- Significant mismatch between the marketed project name and the officially registered project name.
- Multiple pending complaints or regulatory orders against the project on the RERA portal.
- Sale agreement silent on RERA registration details entirely.
Frequently Asked Questions
Can I get a home loan for a project without RERA registration?▾
Most lenders will not finance under-construction properties lacking valid RERA registration, since it's a key part of their legal due diligence. Ready-to-move properties with a completion certificate are typically exempt from this requirement.
Where can I check a project's RERA registration status?▾
Each state maintains its own official RERA portal where you can search by project name, developer name, or registration number to verify status, approved plans, and any complaints on record.
Does RERA guarantee my project won't be delayed?▾
RERA doesn't guarantee zero delays, but it legally obligates developers to disclose committed completion dates and pay interest or compensation to buyers if those dates aren't met, giving buyers a formal recourse mechanism.
Is RERA registration required for resale or ready properties?▾
RERA registration is primarily relevant to under-construction projects being actively marketed and sold by a developer. Ready-to-move and resale properties with a completion certificate generally fall outside this specific registration requirement.
Disclaimer: EasiLoan is a home loan advisory and comparison platform, not a bank or NBFC. We do not lend directly. Interest rates, eligibility criteria, and scheme terms mentioned above are indicative, sourced from public/lender data, and subject to change at the discretion of respective lenders and government authorities. Please verify current terms with your chosen lender or the official scheme portal before making financial decisions.