The Real Estate (Regulation and Development) Act, 2016, changed how housing projects are sold in India. Each state has its own regulatory authority, and in Hyderabad the relevant body is the Telangana RERA authority. For a budget buyer, RERA is one of the most useful tools available, because it puts basic project information into the public domain and sets rules on how builders can collect and use money. Yet many buyers still sign agreements without checking whether the project is registered at all.
This guide explains how to use the RERA system before you pay a booking amount. It covers what registration means, where to look for it, which details to compare against the sales brochure, how the escrow rules work and what to do if something does not match. The approach is simple: verify first, pay second, and keep a written record of every step.
Why RERA matters for budget buyers
Budget buyers often have one chance to get the decision right. A large share of their savings goes into a single flat, and a loan will run for many years. RERA is designed to reduce the risk of misleading claims, unexplained delays and money being diverted away from the project itself. When a project is registered, the developer must publish certain details and report progress, and buyers have a formal route to complain if the developer fails to keep promises.
RERA is not a guarantee. Registration does not confirm that the builder is financially strong or that the project will be completed on time. It confirms that the project has been reviewed against the law and that certain information is available for you to check. Think of it as a starting point for due diligence, not the end of it.
When registration is required
Most residential projects in Telangana that cover more than 500 square metres of land or contain more than eight apartments must be registered with the authority before they are advertised or sold. Projects that fall below these limits may not need registration, but this does not make them safer. Smaller projects still need proper approvals, a clear title and a written agreement, and some buyers find that small projects have weaker records for paperwork and delivery.
Ask the developer directly whether the project is registered and for the registration number. A developer who hesitates or gives a vague answer should be treated as a warning sign. If the project is registered, the number should be easy to find and should match the details on the certificate that the developer provides.
Finding the project on the state portal
The Telangana RERA authority maintains an online register of registered projects. Search by the project name, the registration number or the developer’s name, and open the project page to see its details. Compare the locality, the number of towers or apartments, the approved layout and the expected completion date against what the sales team has told you. Note any differences in writing, because they matter later if a dispute arises.
The portal also lists registered agents and gives access to quarterly progress reports that developers are required to file. Reading these reports can reveal whether construction is moving at the pace the brochure suggests. If the most recent update is much older than the period you would expect, ask the developer to explain the delay in writing.
Reading the registration certificate and its validity
A registration certificate sets out the project’s registration number, its validity period and the authority’s conditions. Check the validity date carefully. Registration usually runs for a set number of years from the date of approval, and extensions are possible only under the rules. If the validity is close to expiry, or if the completion date is later than the registration period, ask how the developer intends to renew or extend the registration.
Look also at the developer’s track record, which RERA alone does not settle. Ask for a list of the developer’s earlier residential projects in the city, then visit two or three of them, speak to residents who have lived there for a few years and check whether the handover dates were met. Search for court cases or public complaints about the company, but read them with care, because a single dispute does not always mean poor conduct. A pattern of late handovers, unfinished amenities or repeated changes to the layout is far more telling.
Compare the certificate with the sale agreement. The project name, the phase, the land area and the approved number of units should match. Mismatches may be innocent clerical errors, but they can also point to a project that has been changed without proper approval, so do not assume they are harmless.
Carpet area, pricing and mandatory disclosures
RERA defines carpet area as the net usable floor area of a flat, excluding the area covered by external walls, balconies and common walls shared with other units. This definition is important because many sales brochures quote super built-up area, which includes a share of common spaces. A flat advertised at a low rate per square foot on super built-up area may cost far more per usable square foot once carpet area is taken into account.
Ask for the carpet area in writing and check that the sale agreement uses the same figure. Confirm the price per square foot on carpet area, the list of charges such as parking, club membership and car parks, and any extra payments that could be demanded later. A transparent developer will give you a complete price breakdown without fuss.
The escrow account and the 70 percent rule
One of the most useful features of RERA is the requirement that a large share of the money collected from buyers must be kept in a separate bank account. The rule generally requires seventy percent of the amounts collected for a project to be deposited in an escrow account and used only for construction and land costs for that project. This limits the risk that buyers’ money will be used for other purposes.
You cannot see the escrow account directly, but you can ask the developer to confirm the bank and account arrangement in writing, and to share the chartered accountant’s certificate that is often filed with progress reports. If a developer refuses to explain how buyers’ money is protected, consider that a serious red flag.
Timelines, possession and delay compensation
The agreement should state the expected possession date and the conditions under which it may be extended. RERA allows buyers to claim interest on money paid if the developer delays possession beyond the agreed date without valid reason, and to seek a refund with interest if the project is abandoned. Read the agreement’s clauses on delay, force majeure and the grace period, because these determine how much protection you actually have.
Do not rely on verbal promises about completion. If the agreement says the flat will be handed over within a set period, keep the date in your calendar and check the registration portal every few months. A delay that is recorded and communicated early is much easier to handle than one discovered at the handover stage.
Agents, brokers and whom they represent
Many buyers meet a project through an agent. Under RERA, real estate agents involved in selling registered projects are required to be registered with the authority. Ask for the agent’s registration number and check it on the portal before paying any money. An agent who is not registered or who refuses to share the number should not be trusted with a booking amount.
Also confirm which party the agent represents. A broker may be paid by the developer, not by you, and that can affect the advice you receive. Put every promise made by the agent in writing and check it against the developer’s own documents.
Complaints and what to do if something goes wrong
If you find a mismatch or a breach, document it first. Keep emails, receipts, photographs and copies of the agreement. Then raise the issue with the developer in writing and give a reasonable time to respond. If the problem is not resolved, you can file a complaint with the state RERA authority, and appeals from its orders can go to the appellate tribunal under the Act. A property lawyer can advise you on the right route and the time limits that apply.
| What to check | Where to look | Red flag |
|---|---|---|
| Registration number and validity | State RERA portal and certificate | No number, or validity close to expiry |
| Carpet area and approved units | Certificate and sale agreement | Mismatch between documents |
| Quarterly progress updates | Project page on the portal | Long gaps or no updates |
| Agent registration | Agent register on the portal | Unregistered or unwilling to share |
| Escrow arrangement | Written confirmation from developer | Refusal to explain how funds are held |
Frequently Asked Questions
Does a RERA-registered project mean it is safe to buy?
Registration means the project has been reviewed and its basic details are public. It does not guarantee on-time completion or the developer’s financial strength. Combine RERA checks with title verification, approval checks and a review of the builder’s track record.
Can I check a project’s registration before I visit the site?
Yes. Search the state register using the project name, developer name or registration number. Doing this before a site visit saves time and helps you ask better questions.
What if the developer has not registered a project I like?
Ask why. There may be a valid reason, such as the project being below the registration threshold, but you should still check approvals and title carefully. If there is no good answer, consider walking away.
Do I need a lawyer to read the RERA documents?
A lawyer is not always required, but a short review of the agreement is strongly advisable before paying a large sum. A lawyer can explain clauses on delay, extension and cancellation that many buyers find confusing.
Can I get my money back if the project is delayed?
RERA provides routes for interest on delay and, in serious cases, refunds with interest. The exact remedy depends on the agreement and the facts, so keep records and seek advice early rather than waiting for the date to pass.
Verification as a habit
RERA is most useful when it becomes a routine rather than a single check. Verify the project before paying, confirm the agent, read the progress reports and keep your own record of every promise. A buyer who treats the portal as a regular source of truth is far better placed to spot trouble early, when it is still possible to act.
