How RERA Benefits First-Time Property Buyers: A Complete Guide 

RERA has made it mandatory for developers to register their projects with the RERA authority before marketing or selling them. The project details, including layout plans, timelines, and legal clearances, are made available on the RERA portal. As a first-time buyer, this transparency allows you to make informed decisions based on verified information rather than relying solely on sales pitches. 

One common issue first-time buyers face is the confusion around carpet area versus super built-up area. RERA defines the carpet area as the net usable floor area within the walls of an apartment, excluding areas like balconies and common areas. This standardized calculation prevents developers from inflating property prices by including unnecessary spaces. 

Project delays have been a significant pain point for homebuyers. Under RERA, developers are required to adhere to the project timeline specified at the time of registration. If the developer fails to complete the project within the promised timeframe, they are liable to pay compensation to the buyers. This provision offers peace of mind to first-time buyers, ensuring their investment won’t be stuck in an indefinitely delayed project. 

RERA restricts the advance payment developers can demand to no more than 10% of the property’s total value before entering into a formal sale agreement. This benefit protects first-time buyers from paying large sums upfront and minimizes financial risk. 

To avoid the misuse of funds, RERA mandates that developers deposit 70% of the project’s funds, including buyer advances, into a separate escrow account. These funds can only be used for construction and land-related costs, ensuring that the money you pay is being used exclusively for the project you are investing in. This practice reduces the likelihood of project delays and ensures that developers stay on track financially. 

For first-time buyers, resolving disputes with developers can be challenging. RERA provides a straightforward mechanism to address grievances. If a buyer faces issues like delayed possession, quality concerns, or other breaches of the agreement, they can file a complaint with the RERA authority. The RERA tribunal is obligated to address the complaint within a set timeframe, ensuring faster resolution. 

Before RERA, many developers promoted their projects with exaggerated claims and false promises. RERA strictly monitors and controls promotional activities, ensuring that all advertisements and marketing materials align with the facts registered with the authority. As a result, first-time buyers can trust that the information they receive is accurate and reliable. 

In the event of discrepancies or violations of the sale agreement, RERA empowers buyers to withdraw from the project and claim a refund with interest. This provision offers an added layer of security, especially for first-time buyers who may be cautious about potential risks.