How RERA Benefits for Builders Society?

With stringent purchasing, acquisition and prediction laws to favor home buyers over fraudulent real estate developers, the post-RERA Act real estate market is experiencing significant transformations. Apart from home buyers, RERA benefits for builders that are legitimate by providing an edge over other builders by winning the trust of their end-users.

RERA Act, made real estate developers register the property to increase their responsibility and accountability to buyers. In doing so, the builders have received a valid RERA registration number. Before RERA registration, builders are not allowed to market, advertise or sell their project units. 

What is RERA for Builders?

Over recent years, the authorities have been aware of the dilemma of property buyers and have worked hard to deal with the topic of RERA. The main aim of the RERA (Real Estate Regulatory Authority) provisions is to safeguard the buyer's interests. The RERA Act also enforces the liability of the developers and can even help them achieve their plans successfully in due course. 

RERA Act is based on transparency and prompt work implementation, so RERA benefits for builders as well as buyers making it a win-win scenario for all. RERA-compliant developers immediately gain the confidence of end-use customers over other developers. Eventually, significant restoration of residential property can be seen with the coming into action of RERA organizations.

How RERA will Benefit Builders?

RERA Act aims to improve the real estate market, encourage transparency, accountability, and appreciation for promises made. Every project needs to authorize with RERA under each individual state rule. Registered developers have many benefits, including RERA certification as a certificate of honor. They readily accept projects approved by financial institutions for housing loans such as housing finance agencies, banks, and NBFCs. 

Nowadays, buyers mostly prefer to purchase RERA approved projects as the builders must offer the property in a timely manner. The developer has in fact also to disclose details of the project to the interested buyers such as the carpet area, Floor Area Ratio and a certain number of housing units.

Any mishaps and delays are solved under the RERA dispute resolution system.  And the best is, availability of appeal process is normally within a 60-day time limit and the court is not allowed to intervene in the decisions on RERA. However, with more builders choosing the RERA registration path, non-registered builders are going to face issues to progress their projects on the government and homebuyers side.

Let’s see in detail how RERA benefits for builders,

Additional Inflow of Fund

A major hurdle for the development of real estate sector is the start of a project. Financial reforms such as the establishment of the GST and the liberalization of the FDI have helped RERA to facilitate business. 

Since the RERA Act has renewed faith and transparency, lenders are more willing to provide builders with cash flow. The demonetization of financial transactions has increased transparency. More global and local investors are encouraged to invest in Indian projects. This leads to greater institutionalized capital inflows, making it possible for real estate projects to be carried out more easily.

RERA will Benefit Builders to Stay Ahead of Competition

Strict laws introduced by RERA helped organize the performance of the RERA approved builders from other developers. With the more untrustworthy developers excluded in the real estate sector, fewer projects for false promises were released. 

Instead, genuine builders win trust and confidence from home buyers by delivering developments in a timely manner. Legitimate builders, therefore, establish their image in the development of projects. This ensured that there is a healthy competition, which in turn lead to the development of quality property projects as it is difficult for the illegal landowners to register for RERA.

Well-Regulated Real Estate

RERA benefits for builders by regulating the real estate network by recording capital, land, assets, and resources to prevail. Both financial conflicts were quickly resolved to ensure a smooth process in the industry. RERA provided wide-ranging opportunities for increasingly positive real estate investments to boost the real estate sector.

All forms of property referrals have been considered illegal by RERA. However, since referrals are an important part of real estate growth. Developers are needed to connect to a RERA-compliant referral platform. A RERA compliant reference framework is developed and the digital platform makes it easy to document references transparently and allows the company to grow in a legal process.

Sigh of Relief 

After 2 months of acquiring the occupancy certificate, the buyers are required to take possession of the house. This is good news for the developers as unoccupied assets were minimized. 

RERA makes it a mandatory step to regularise payments like Maintainance costs, registration fees,  taxes, water/electricity charges, etc by the buyers. This is an alleviation for developers, who often get stressed by the stalled payments. With strict provisions, it not only makes builders organize their works ahead but also helps them to contribute positively to the economic growth of the country.

Consequences for Non-Registered Projects

Under section 59 of the RERA act, a fine of up to 10% of the expected project costs for failure to register and if the same is continued an additional 10% of the estimated project cost or a 3-year prison term or both will be implied.

In accordance with Article 31 of the RERA Act, in the case of a breach by the builder of RERA provisions, the client can file a complaint with the authority. In the event of the builder’s non-compliance, the jurisdiction has all rights to take severe action. The authority may impose a penalty or take the necessary remedial measures to safeguard the buyer.


Although it’s only been two years since the RERA Act got implemented, it too soon to judge the outcomes. For builders and buyers, RERA act is a saviour in disguise! Anyone having been properly informed about RERA, will surely be persuaded that the government implemented the legislation for the greater good. At RERA, the dishonest land builders are punished and sentenced with hefty fines while the genuine builders are lawfully protected with major of their projects being sold.

Are you ecstatic by knowing the importance of RERA? Browse to find all RERA approved projects in Hyderabad for well-reputed builders to make a smart informed decision in your dream home purchase.

By Govi