Thinking of buying a resale property? It’s a great option, especially if you want to avoid the long waiting periods that come with new projects. But before you dive in, it’s important to understand RERA rules for resale properties and how they impact your purchase.
The Real Estate (Regulation and Development) Act (RERA) was introduced in 2016 to bring transparency and fairness to the real estate sector. While it mainly focuses on new projects, it also plays a crucial role in resale property transactions. So, if you’re planning to buy a pre-owned home, here’s what you need to know to make a safe and informed decision.
Does RERA Apply to Resale Properties?
Yes and no—it depends. RERA primarily covers new and ongoing projects, but if you’re buying a resale property in a RERA-registered project, some rules still apply. This means you get the benefit of legal clarity and transparency, ensuring the property you’re investing in is legitimate.
Now, let’s break down the key RERA rules for buying a resale property that you should keep in mind.
How to Verify RERA Registration for Resale Properties
Before anything else, find out whether the project is RERA-registered. Why? Because a registered project means the developer has followed all legal norms and approvals.
Steps to Check RERA Registration
- Visit your state’s official RERA website.
- Enter the project’s registration number (the seller should provide this).
- Verify the project’s legal approvals, completion status, and complaints (if any).
If the project isn’t registered, proceed with caution—there could be unresolved legal or financial issues.
Key RERA Rules for Buying a Resale Property
1️⃣ Transparency in Property Details
One of the biggest advantages of RERA is that it ensures transparency in property transactions. Developers must disclose:
✅ Layout plans
✅ Legal approvals
✅ Construction status
✅ Available amenities
If you’re buying a resale property in a RERA-registered project, the seller should provide all necessary documents. If they hesitate, that’s a red flag.
2️⃣ No Misleading Claims by Sellers
Ever heard of a property that was advertised as a “luxury home” but turned out to be anything but? RERA protects buyers from misleading property claims.
Under RERA, sellers and brokers are legally bound to provide accurate details. If they don’t, you have the right to take legal action or claim compensation.
3️⃣ Defect Liability for 5 Years
Here’s a big plus! If the property you’re buying is still within five years of possession, the original builder is responsible for fixing any major structural defects or quality issues—for free!
4️⃣ Essential Documents for a RERA-Compliant Resale Property
When purchasing a resale property under RERA, ensure that you get:
📜 Original sale deed
📜 Encumbrance certificate (proves the property is free of legal dues)
📜 RERA registration certificate (if applicable)
📜 No-objection certificates (NOCs) from relevant authorities
📜 Tax receipts and utility bills
Having these documents in place will save you from legal headaches in the future.
5️⃣ Advance Payments Cannot Exceed 10%
Some sellers may ask for a huge upfront payment before signing a formal agreement. However, RERA rules for resale properties state that a seller cannot ask for more than 10% of the total property value as an advance.
Why Buying a RERA-Compliant Resale Property is a Smart Move
If you’re investing in a resale property that follows RERA rules, you get several benefits:
✔️ Legal Protection – Ensures clear titles and approvals.
✔️ Reduced Risk – Prevents misleading claims and hidden legal issues.
✔️ Accountability – Keeps both developers and sellers in check.
✔️ Financial Safety – Restricts unnecessary advance payments.
Final Thoughts on RERA Rules for Resale Properties
Buying a resale property can be a great investment, but only if you do your homework. RERA offers much-needed transparency, so always check if the project is registered, review all legal documents, and don’t rush into a deal without verifying everything.
If you’re unsure about anything, consult a real estate expert—or drop your questions in the comments below! I’d love to help you navigate your home-buying journey. Happy house hunting!
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