RERA explained: what it means for home buyers in Bihar

The Real Estate (Regulation and Development) Act, 2016, usually called RERA, sets out rules that promoters must follow and rights that buyers can rely on. Every state has its own authority; in Bihar it is the Real Estate Regulatory Authority, Bihar.

Registration comes first

Most residential projects must be registered with the state authority before they are advertised, marketed or booked. Projects on land larger than 500 square metres, or with more than eight apartments, fall under this rule. Once registered, a project receives a registration number, and that number must appear in its advertisements.

What to do: note the registration number and look the project up on the authority's website, rera.bihar.gov.in. The listing shows the promoter, the approved plans and the declared timeline.

Carpet area, clearly defined

RERA defines carpet area as the net usable floor area of an apartment. It excludes external walls, service shafts, exclusive balconies or verandahs and exclusive open terraces, but includes internal partition walls. Prices are expected to be quoted on carpet area, which makes comparing homes much easier.

Your money stays with your project

Promoters must deposit 70% of the amounts collected from buyers into a separate bank account, to be used only for the construction and land cost of that project.

Limits on advance payments

A promoter cannot take more than 10% of the cost of an apartment as an advance or application fee before signing a written agreement for sale with the buyer.

Structural defects after possession

If a structural defect or poor workmanship is brought to the promoter's notice within five years of possession, the promoter must rectify it.

If something goes wrong

Buyers can file a complaint with the state authority if a registered promoter does not meet their obligations under the Act.