Buying a home is one of the most significant investments you’ll make, and understanding the Real Estate (Regulation and Development) Act (RERA) is essential for making an informed decision. RERA has transformed the real estate sector by ensuring transparency, accountability, and protection for homebuyers. With new amendments and stricter compliance in 2025, staying informed about your rights and obligations is crucial. Here’s a comprehensive guide to the latest RERA updates and their impact on Bengaluru’s property market.
What is RERA?
RERA was enacted in 2016 to regulate the real estate sector and protect homebuyers from fraud and delays. It mandates that developers register their projects with the RERA authority, disclose project details, and adhere to timelines.
Key Highlights of RERA:
- Mandatory project registration with RERA.
- Protection of homebuyers’ advance payments in a separate escrow account.
- Transparency in project details such as layout, timeline, and approvals.
- Accountability for project delays with compensation provisions.
Latest RERA Amendments for 2025
- Stricter Penalties: Developers failing to meet deadlines will face higher fines, up to 10% of the project cost.
- Digital Transparency: All project-related documents must be uploaded to the RERA portal for easy access.
- Green Compliance: New guidelines mandate that 30% of project areas must include green spaces, aligning with Bengaluru’s focus on sustainable living.
- Consumer Grievance Redressal: Faster resolution timelines with dedicated helplines and digital complaint filing.
- Mandatory Insurance: Developers must provide project insurance covering structural defects for the first five years.
Benefits of RERA for Homebuyers
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Benefit
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Description
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Transparency
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Access to verified project details, approvals, and timelines.
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Financial Security
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Funds are safeguarded in escrow accounts, preventing misuse.
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Legal Protection
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Homebuyers can seek compensation for delays or false promises.
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Quality Assurance
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Mandatory defect liability period ensures construction quality.
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Accountability
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Developers are held accountable for project delivery and specifications.
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15 Key RERA Guidelines for Bengaluru Homebuyers in 2025
- All developers must register their projects with RERA before advertising or selling.
- 70% of homebuyers’ payments must be deposited in an escrow account.
- Developers are liable for structural defects for five years post-possession.
- Homebuyers must receive a copy of the builder-buyer agreement.
- Developers must update project status quarterly on the RERA portal.
- Carpet area must be clearly defined and disclosed, not super built-up area.
- Homebuyers have the right to a full refund if the project is delayed beyond the agreed timeline.
- Any project changes require at least 2/3rd homebuyer consent.
- RERA approval is mandatory for any project exceeding 500 sq. meters or eight units.
- Developers must obtain all project-related approvals before starting sales.
- Advertising false claims is punishable under RERA guidelines.
- Developers failing to register a project can face imprisonment of up to three years.
- Homebuyers can file complaints online through the Karnataka RERA portal.
- Interest rates for project delays are equal for both homebuyers and developers.
- Developers must provide occupancy certificates before possession is handed over.
RERA’s Impact on Bengaluru’s Real Estate Market
- Increase in Trust: Homebuyers have greater confidence in registered projects.
- Growth of Sustainable Projects: New green compliance guidelines are driving eco-friendly developments.
- Faster Project Completions: Stricter penalties ensure timely project delivery.
- Enhanced Investment Potential: Transparent processes are attracting more investors to Bengaluru’s real estate market.
RERA Checklist for Bengaluru Homebuyers in 2025
- Verify project registration on the Karnataka RERA portal.
- Review project timelines, layout plans, and legal clearances.
- Ensure your payments are made to the escrow account.
- Check for green compliance and sustainability features.
- Know your rights for compensation in case of project delays.
As Bengaluru’s real estate landscape continues to grow, understanding RERA guidelines is essential for securing your dream home. Stay informed, stay protected, and make your home-buying journey seamless.
