RERA 2.0: What’s New for Homebuyers in 2025?
Recent Amendments and Compliance Updates under the Real Estate (Regulation and Development) Act
The Real Estate (Regulation and Development) Act, or RERA, has been a transformative piece of legislation since its enactment in 2016. Designed to bring transparency, accountability, and consumer protection into the real estate sector, it marked a shift in power towards homebuyers. As we step into 2025, the updated version commonly referred to as “RERA 2.0” introduces a new wave of reforms and compliance measures aimed at strengthening these protections.
At Legal Assist, we believe it’s vital for property buyers and investors to stay updated with these changes. Here’s a breakdown of the key developments under RERA 2.0 that every homebuyer should know:
- Stricter Penalties for Delays and Non-Compliance
One of the most significant changes is the tightening of penalties on builders for project delays. RERA 2.0 mandates higher compensation rates and interest payouts for delayed possession, holding developers more accountable than ever before.
- Mandatory Escrow Audits and Fund Utilization Reports
While the original RERA required 70% of project funds to be deposited in escrow accounts, the amendment now mandates third-party audits and regular fund utilization reports. This ensures greater financial transparency and prevents fund diversion.
- Online Complaint Resolution Portals
States have been directed to establish faster, tech-enabled portals for resolving buyer grievances. These online mechanisms aim to reduce case backlog and provide quicker redressal for complaints against builders or agents.
- Expanded Definition of Ongoing Projects
RERA 2.0 has broadened the scope of what constitutes an “ongoing project.” This change brings many previously unregistered projects under RERA’s regulatory framework, offering protection to more homebuyers.
- Standardized Builder-Buyer Agreements
To reduce ambiguity and ensure fairness, a uniform template for builder-buyer agreements has been introduced. These standardized agreements must now clearly define possession timelines, penalty clauses, construction milestones, and refund policies.
- Enhanced Role of Real Estate Agents
Agents are now required to undergo mandatory certification and adhere to a code of conduct. This professionalization of the brokerage industry aims to increase trust and accountability.
- Quarterly Project Progress Updates
Developers must now submit detailed quarterly updates on construction status, approvals, sales, and other key metrics to RERA portals. This allows homebuyers to track project progress transparently.
- Increased Jurisdiction of RERA Authorities
The amendments empower RERA authorities to take suo moto action against erring developers and agents, even in the absence of a buyer complaint. This proactive regulation helps in curbing malpractices early.
Final Thoughts: What This Means for Homebuyers
RERA 2.0 marks a significant evolution in India’s real estate regulatory landscape. For homebuyers, this translates into greater confidence, transparency, and legal protection in property transactions. However, awareness is key. Buyers must ensure their projects are RERA-registered and regularly check compliance updates via their respective state RERA portals. At Legal Assist, our experts are here to help you navigate property purchases with legal clarity and peace of mind. Stay informed, stay protected.
