How RERA protects home buyers in Telangana

Before 2016, a buyer whose flat was delayed had little to fall back on except a long court case. The Real Estate (Regulation and Development) Act, 2016, usually just called RERA, changed that. In Telangana it is enforced by the Telangana Real Estate Regulatory Authority (TG RERA). Here is what the Act gives you, and what you still have to check yourself.

Which projects must register

A project has to be registered with TG RERA if the land is more than 500 square metres or it has more than eight apartmentscounting all phases. Until it is registered, the builder is not allowed to advertise it, take bookings or sell. So your first question about any project is its RERA registration number.

To register, the builder files the sanctioned plans, the land title documents and the completion date, among other things. These are public. Go to rera.telangana.gov.in and search by project name, builder or registration number.

What the Act gives you

Your money stays with the project

The builder must put 70% of what buyers pay into a separate bank account, and can use it only for the land and construction cost of that project. This is what people mean by the RERA escrow account. It makes it harder to divert your money to another site. It does not guarantee the project finishes on time.

A possession date the builder is held to

The builder declares a completion date at registration, and your agreement for sale carries a possession date. If the builder misses it, you have two choices. You can withdraw and take your money back with interest, or you can stay and be paid interest for every month of delay until you get possession. The interest rate is set in the state's RERA rules, so check the current rate on the TG RERA site before you calculate a claim.

The builder cannot quietly change the plan

The registration number has to appear in the project's advertising, and what is sold has to match what was filed. The builder needs your consent to change the plan or specifications of your own flat, and the written consent of two-thirds of the buyers to change the project layout or common areas. If a brochure shows something the filing does not, trust the filing.

Five years of defect cover

If a structural defect, or a defect in workmanship, quality or services, shows up within five years of possession and you report it, the builder has to fix it at no charge within 30 days. If the builder does not, you can claim compensation.

A place to complain

You can file a complaint with TG RERA instead of going to a civil court. It is generally simpler and cheaper than a suit, though it is not always quick, and an order still has to be enforced.

What you still have to do yourself

1. Check the registration number on the TG RERA site before you pay a booking amount. Do not rely on the number printed in a brochure.
2. Compare the brochure with the sanctioned plan on the project's RERA page.
3. Read the quarterly updates the builder has to file there. If the reported progress does not match what you see at the site, ask why.
4. Read the possession date and the delay clause in your agreement for sale before you sign.
5. Look at what the builder has delivered before. Registration tells you the paperwork was filed. It does not tell you the builder is good.

relai works only with RERA-registered projects. If you would like help reading a project's RERA record before you book, talk to a relai advisor.