NRI · Risk · The Propah POV
What does RERA actually protect a remote buyer from?
A developer who takes your money and fails to deliver — and it does that genuinely well. What it does not protect you from is a bad purchase. RERA never asked whether the price was right, the micro-market absorbs, or the project is worth owning. And every remedy it gives you requires you to pursue it, from abroad, for months.
What you actually get
These are real protections and they changed the market. Under the Real Estate (Regulation and Development) Act, 2016:
| Protection | What it means for you |
|---|---|
| 70% in a separate account | Money collected for a project must be parked in a designated account and used for that project — the rule aimed squarely at funding one project from another’s buyers |
| Sale on carpet area only | The developer must disclose and sell on carpet area, not super built-up. This alone removed a whole category of misrepresentation |
| 10% advance cap (s.13) | A promoter cannot take more than 10% of the cost before a written, registered agreement for sale |
| Five-year defect liability (s.14) | Structural defects, workmanship and material deficiencies identified within five years of possession are the developer’s to fix |
| Delay remedies (s.18) | Withdraw and take a refund with interest, or stay and claim interest for every month of delay |
| Orders enforceable as decrees | A K-RERA order carries the force of a civil court decree and can be enforced by attachment of assets |
The delay interest is not token. It is calculated at SBI’s MCLR plus 2%, which as at mid-2026 works out at roughly 10.85% a year — more than most buyers earn on the money elsewhere. K-RERA can also impose penalties for non-compliance with its orders, reported at up to 5% of estimated project cost per day, and civil courts are ousted from RERA matters, so the forum is specialised rather than general.
RERA gives you strong rights. It does not give you short timelines, and distance makes that gap wider.
Now the part written for someone abroad
Every one of those rights is exercised by you, on your initiative, through a process that takes time. That is a very different proposition at 8,000 kilometres.
Filing itself is straightforward and online through the K-RERA portal. Pursuing is not. Hearings are attended, adjournments happen, documents get called for, and someone has to respond within the time given. From another time zone, without a person in India who can act, a strong case can stall on logistics rather than merit.
The limit that matters most
- K-RERA cannot make an insolvent developer build. An order against a company with no money is a piece of paper. This is the single largest gap between the protection on offer and the outcome you want, and it is why who you buy from matters more than what the Act says.
- A registration number is not an endorsement. It means the project is registered, not that it is good, well-funded or likely to complete on time. Buyers routinely read a RERA number as a quality signal. It is a compliance signal.
- Small projects may fall outside registration thresholds, and completed projects are a different matter entirely — a resale purchase is not protected by project registration at all.
What RERA was never designed to do
This is where remote buyers are most exposed, because RERA’s existence creates a feeling of safety that extends further than the Act does.
- It does not check the price. Nothing in the Act asks whether you overpaid. With three published prices for one Bengaluru locality sitting 35% apart, that is a real and uninsured risk.
- It does not check the market. A fully compliant project in a corridor with 34% more unsold inventory than a year ago is still a project you may struggle to exit.
- It does not cure title. Registration is not a title investigation. The encumbrance certificate, the thirty-year chain and the approvals are still yours to check.
- It does not police the resale market. Buying from an existing owner puts you outside project registration protections.
- It does not manage your property afterwards, and it has nothing to say about your tenant, your maintenance or your tax position.
How to use it properly before you buy
RERA’s best value to a remote buyer is not as a remedy after things go wrong. It is as a free public dataset you can read before committing — and almost nobody does.
- Verify the registration number itself on the K-RERA portal, rather than accepting one printed on a brochure.
- Read the declared completion date. That date is what a delay is measured against, and it is often later than what the sales team told you.
- Look at the promoter’s other projects on the portal. A pattern of revised completion dates across a portfolio tells you more than any brochure.
- Check for complaints and orders against the promoter. This is public.
- Confirm the agent is registered — section 9 requires it, and the registration number must appear in every advertisement.
- Insist on the registered agreement for sale before paying beyond 10%, because that is your right under section 13 and it is where the enforceable dates live.
What we would do
- Treat the developer’s balance sheet as the real protection. The Act works best against a solvent developer who would rather comply than litigate. Against a weak one it gives you a strong claim and a long wait.
- Have someone in India who can act — a family member with a properly drafted power of attorney, or a professional. Rights you cannot practically exercise are worth less than rights you can.
- Read the RERA record before the brochure, not after the payment.
- Do not let registration substitute for diligence. Title, approvals and price are all outside its scope and all of them can cost you more than a delay.
What this does not cover
- RERA is a central Act administered by state authorities; rules, fees, thresholds and practice differ by state. Figures given are for Karnataka.
- Timelines quoted are typical published ranges, not entitlements. Individual cases vary widely.
- The delay interest formula and the resulting rate move with SBI’s MCLR. Confirm the current rate rather than relying on the figure here.
- Section references are as commonly cited in published guidance; confirm with your advocate before relying on them.
- This is general information, not legal advice. Take advice on your specific facts before filing anything.
What does RERA protect a homebuyer from?
Principally a developer who takes your money and fails to deliver. It requires 70% of project collections to be held in a designated account for that project, mandates sale on carpet area rather than super built-up, caps advance payment at 10% of cost before a registered agreement for sale under section 13, imposes five-year structural defect liability under section 14, and gives you a choice under section 18 to withdraw with a refund plus interest or stay and claim interest for every month of delay. Authority orders are enforceable as civil court decrees.
How much interest can I claim for delayed possession?
The rate is SBI's marginal cost of funds based lending rate plus 2%, which as at mid-2026 works out at roughly 10.85% a year. You may either withdraw from the project and take a refund with interest, or continue and claim interest for each month the delay runs. The rate moves with SBI's MCLR, so confirm the current figure rather than relying on a quoted one.
Does RERA protect an NRI buying from abroad?
The rights are identical, but exercising them is not. Every remedy requires you to file and pursue, and Karnataka timelines run roughly 4–8 months where documents are in order and the developer cooperates, 9–18 months where facts are contested, and 3–5 years where insolvency takes it to NCLT. Hearings are attended and documents are called for on short notice. Without someone in India able to act on your behalf, a strong case can stall on logistics rather than merit.
Does a RERA registration number mean a project is safe?
No. It means the project is registered, not that it is well-funded, well-built or likely to complete on time. Buyers routinely read the number as a quality signal when it is a compliance signal. Its real value is as a free public record: verify the number on the state portal, read the declared completion date that any delay will be measured against, look at the promoter's other projects for a pattern of revised dates, and check for complaints and orders already filed against them.
What does RERA not cover?
It does not ask whether you overpaid, whether the micro-market will absorb the project, or whether the title is clean — registration is not a title investigation. It does not police resale purchases from an existing owner, and smaller projects can fall below registration thresholds. And critically, it cannot make an insolvent developer build: an order against a company with no money is a piece of paper, which is why who you buy from matters more than what the Act says.
How do I file a RERA complaint in Karnataka?
Online through the K-RERA portal. The filing fee is banded by claim size — around ₹1,000 up to ₹10 lakh, ₹2,000 between ₹10 and ₹50 lakh, and ₹5,000 above that. Civil courts are ousted from RERA matters, so the authority or adjudicating officer is the forum. K-RERA can direct delivery of possession, completion, provision of promised amenities and rectification of defects, and can impose penalties for non-compliance with its orders.
Can I pay more than 10% before signing an agreement?
A promoter is not permitted to take more than 10% of the cost as advance or application money without first entering into a written agreement for sale and registering it. That agreement is where the enforceable completion date lives, so paying beyond 10% without it removes the very document your delay claim would rest on. If a developer asks you to, that is the point to stop rather than negotiate.
Is my builder responsible for defects after possession?
For five years from possession, under section 14 — covering structural defects, poor workmanship and deficiencies in materials. Report defects in writing as they appear rather than accumulating them, keep dated photographs, and raise them well inside the five-year window. If you are abroad, arrange for someone to inspect the property at least once before the period expires; defects noticed in year six are yours.
Provisions of the Real Estate (Regulation and Development) Act 2016, Karnataka RERA filing fees, complaint timelines, enforcement powers and the MCLR-plus-2% delay interest formula checked across published guidance in September 2026. RERA is administered by state authorities and rules, fees and thresholds differ by state; figures are for Karnataka. Timelines are typical published ranges, not entitlements. The delay interest rate moves with SBI's MCLR. Section references are as commonly cited; confirm with your advocate. This is general information, not legal advice.
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Read the RERA record before the brochure.
The declared completion date, the promoter’s other projects and the complaints already filed are all public, all free, and almost nobody looks.
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