Understanding RERA and Its Benefits for Homebuyers in Mumbai
The Real Estate (Regulation and Development) Act, better known as RERA, was introduced in 2016 to bring transparency and accountability to the real estate sector. For homebuyers in Mumbai and across India, RERA is a game-changer. Let’s break down how it works and why it matters.
10/2/20251 min read
1. What is RERA?
A central legislation enforced to regulate the real estate market
Makes builders accountable for project delivery, quality, and documentation
Each state has its own RERA authority — in Maharashtra, it’s MahaRERA
2. Mandatory Project Registration
Every real estate project (residential or commercial) over 500 sq.m. or 8 units must be registered
Builders must disclose land title, approvals, timelines, financials, and layout plans
Use maharera.mahaonline.gov.in to verify a project’s RERA number.
3. Benefits for Homebuyers
a. Timely Possession
Developers are legally bound to deliver possession as per committed timelines
Delay can result in compensation to the buyer
b. Transparency
All project details are available on the MahaRERA portal
Includes carpet area, layout plans, construction status, and legal approvals
c. No Misleading Ads
Only RERA-registered projects can be advertised
Developers must use accurate visuals and specifications
d. Standardised Carpet Area
Builders must now quote prices based only on carpet area, not built-up or super built-up
e. Financial Discipline
70% of customer funds must be deposited in a separate escrow account
Funds can only be used for that specific project
4. Dispute Resolution & Accountability
Buyers can file complaints directly with MahaRERA
Swift resolution process with legal backing
This empowers buyers who previously had limited recourse against delays or fraud.
5. Impact on the Mumbai Market
Major developers now follow best practices due to RERA compliance
Buyers are more confident in under-construction properties
Areas like Chembur, Wadala, and Kurla have seen increased launches of RERA-approved projects
Conclusion
RERA is not just a law—it’s your safety net. Whether you're a first-time buyer or an investor, buying into a RERA-approved project adds a layer of security.
Want to explore RERA-approved flats in Mumbai? Chembur Property can help you find verified, legally sound properties that are safe and profitable investments. Contact us today!
