Understanding RERA: What Every Buyer Should Know

Buying a flat, especially in cities like Bengaluru can feel risky. However, the process has been made simpler and protected with the Real Estate Regulatory Authority also known as “RERA”. RERA provides legal protection for homebuyers, especially in Karnataka, the RERA Karnataka rules help to protect your investment in new properties.

This guide will explain what is RERA, why it’s important in Karnataka, and how it keeps your money safe during the home-buying process.

What Is RERA?

The RERA Act was introduced in 2016. It makes sure to make real estate investment more trustworthy and transparent. Each state has its own regulatory authority including Karnataka. It makes sure that developers are following all the important rules.

Karnataka launched its RERA portal in 2017 under Karnataka RERA Act. It requires all real estate projects that are larger than 500 square meters or have more than eight residential units to be registered before any sales can take place.

The main goals of RERA are:

• Providing buyers full information on the development projects.
• Helping builders stay committed to their planned dates for finishing projects.
• Resolving concerns related to property.

Key Rules of RERA You Should Know

Let’s explore what are RERA rules that protect homebuyers.

Mandatory Online Disclosure

All important project details and updates must be entered onto the RERA portal by the builders themselves. This includes:

• Floor Plans: Comprehensive layouts of the site.
• Approvals: Evidence that the necessary approvals have been received.
• Completion Timeline: A predicted day or period when the project will be completed.

Financial Safeguards

RERA demands to put 70% of the collected money of a project in a different escrow account. Money raised by builders must only be used on the particular project it was set aside for. It ensures that buyer money is dedicated to the project they support and is not moved to another area.

Progress Updates

Builders must upload the updates of their project progress quarterly on the RERA website. Missing deadlines can result in major charges for them. As a result, they are motivated to meet their deadlines.

Five Direct Benefits for Home-Buyers

RERA offers many advantages that empower buyers:

1. Trusted Project Listings

Easily enter the project name or PIN code in RERA’s site to see if a project is registered. This process helps you to check whether the project you are investing in is genuine.

2. On-Time Delivery Guarantees

If a builder fails to handover the possession of the property on time, they must pay penalty fees every day until you obtain it. As a result, builders finish your house when expected and ensure your investment is safe.

3. Refunds and Interest on Changes

In case the builder changes something on the plans without your approval, you are eligible for a refund. This protects your rights as a buyer.

4. Fast Dispute Resolution

A complaint to the Karnataka RERA against a builder should be settled within 60 days. With such a speedy action, you can cut your stress and stay focused on other tasks.

5. Quality Assurance

RERA guarantees that every builder must correct any structural issues you notice in the first five years after moving into the apartment. As a result, you can feel satisfied with how the construction will be done.

3-Step Guide for Using RERA

Using the RERA portal is easy and user-friendly. Here is how to do it quickly:

1. Visit the Karnataka RERA website and select “Registered Projects.”

2. Enter the project name or the name of the promoter to find important details. These details usually include approvals, bank account information, and the expected completion date.

3. If you run into any issues, click on “Lodge Complaint” to report your concerns. You must be sure to upload your sale agreement and payment proof to help resolve your issue faster.

It is important to understand what is RERA approval in detail to understand things better.

Enforcement Scorecard (2025 snapshot)

Karnataka RERA has ordered refunds and penalties totaling ₹759 crore for the year 2025. However, only 12% of this amount has been recovered.

New rules are introduced in 2025 which allow RERA to seize the assets of builders who don’t pay their dues,  ultimately providing more protection and security for buyers.

Tips to Maximize Your Protection

Here are some important tips that you must keep in mind to secure your investment while investing in real estate. So, here we go:

1. You must invest in Karnataka RERA approved projects only.

2. Always make your payments to the official “RERA Bank A/C” listed on the portal to keep your money safe.

3. Save every receipt and take screenshots of progress updates. These documents are important if you need to claim interest on delays or address other issues.

4. Only sign the model sale agreement available on the RERA site. If there are any blank sections, make sure they are filled in or removed before signing to protect your interests.

Conclusion

In Karnataka, RERA is a game-changer for homebuyers. It requires builders to register their projects, share important information, and meet their commitment. If they are unable to fulfill these requirements they will face penalties. You can effectively protect your investment by using the RERA portal before making a purchase, during construction, and if disputes come up.

If you are considering investing in property, check out our upcoming project Reflections by Mudiita Developers. Our project is RERA-compliant and developed by trusted builders. As a result, you can experience the peace of mind that comes with knowing your investment is secure.

Contact our team for further guidance and assistance.

FAQs

Q: What is the full form of RERA? 

A: RERA stands for Real Estate Regulatory Authority, which aims to protect home buyers and promote transparency in the real estate sector.

Q: How does RERA benefit homebuyers? 

A: RERA offers several benefits. These range from trusted project listings, timely delivery guarantees, financial safeguards, and fast dispute resolution.

Q: How can I check if a project is RERA-registered? 

A: You can verify project registration by visiting the Karnataka RERA portal. Then search by project name or promoter name to check its registration.

Q: What if the builder delays possession or construction?

A: You can file a complaint on the RERA portal. The builder will be liable for penalties until the project is completed.