The real estate sector in India has always been dynamic, but it has also faced its fair share of challenges. From delayed projects to lack of accountability, homebuyers have often struggled to secure their rights in a market dominated by developers. The Real Estate (Regulation and Development) Act, 2016, or RERA, was introduced to bring structure, transparency, and fairness. Now, in 2025, the sector is entering the next phase of regulation with RERA 2.0, an upgraded version designed to resolve gaps in the original framework.
This blog is a practical guide to RERA 2.0, explaining its key provisions, benefits for buyers, accountability for builders, and the broader impact on the real estate sector.
What is RERA 2.0 and how is it different from the original RERA?
The original RERA, implemented in 2017, primarily focused on registering projects, mandating disclosures, and safeguarding buyers’ money. While it brought significant improvement, several loopholes allowed builders to delay possession, mismanage funds, and prolong disputes.
RERA 2.0, introduced in 2025, aims to fix these shortcomings. The differences include:
- Stricter penalties for project delays.
- Mandatory escrow account safeguards to prevent misuse of funds.
- Faster dispute resolution with a 60-day timeline.
- Digital project tracking and online dashboards for buyers.
- Certification requirements for real estate agents.
In essence, RERA 2.0 strengthens enforcement while making the system more accessible and transparent for homebuyers.
Does RERA 2.0 increase penalties for delayed possession?
Yes. Under RERA 2.0, the penalties for delayed possession are higher than before. While the original act imposed interest payments, many builders found ways to delay projects with minimal repercussions.
Now, developers face:
- Escalating interest payments linked to RBI lending rates.
- Blacklisting risks for repeat offenders.
- Cancellation of project registration in extreme cases.
This ensures builders take deadlines seriously, shifting the balance of power toward buyers.
How does RERA 2.0 protect homebuyers’ money in escrow accounts?
Earlier, developers were required to keep 70% of buyer payments in an escrow account. However, loopholes and poor monitoring allowed fund diversion.
RERA 2.0 strengthens this by:
- Mandating quarterly audits of escrow accounts by independent professionals.
- Restricting withdrawals strictly to construction-related expenses.
- Introducing penalties for misuse or misreporting.
This ensures that the money buyers pay is directly used for construction, minimizing financial risk.
Is there faster dispute resolution under RERA 2.0 (60-day timeline)?
Yes, one of the most significant improvements in RERA 2.0 is the strict 60-day resolution timeline for disputes.
The features include:
- Dedicated tribunals with digital case management.
- Online hearings for buyers unable to attend in person.
- Penalties on adjudicating authorities if timelines are missed.
This prevents years-long battles and allows buyers to receive justice within a reasonable time frame.
Can builders launch or advertise projects without RERA clearance in 2025?
Absolutely not. RERA 2.0 makes it mandatory that no builder can launch, advertise, or sell any residential or commercial project without prior RERA registration.
Key changes in 2025:
- Severe fines and jail terms for unregistered advertising.
- Mandatory inclusion of RERA ID in all marketing material.
- Monitoring of digital ads by regulatory bodies.
This provision directly safeguards buyers from fraudulent or incomplete projects.
What buyer rights are guaranteed under RERA in 2025 (refund, interest, defect liability)?
RERA 2.0 guarantees stronger and clearer buyer rights:
- Refunds: If a project is delayed or canceled, buyers can claim full refunds with interest.
- Interest on delays: Developers must pay buyers interest at market-linked rates.
- Defect liability: A five-year liability period ensures developers fix structural defects or poor workmanship at no cost to buyers.
- Right to information: Buyers can access real-time updates on approvals, construction status, and finances.
These rights empower buyers like never before.
How does RERA 2.0 improve digital transparency and project tracking?
Transparency has always been a key issue in real estate. RERA 2.0 introduces digital dashboards and online tracking tools that allow buyers to monitor project progress.
Key features include:
- Online project portals are updated monthly with construction photos.
- Approval trackers showing all government clearances.
- Financial disclosures about escrow account use.
- Grievance tracking with real-time complaint status.
This digital ecosystem ensures accountability and empowers homebuyers to make informed decisions.
Are real estate agents required to be certified under RERA 2.0?
Yes. Real estate agents are now required to be RERA-certified before engaging in sales or marketing.
Changes in RERA 2.0:
- Certification exams for agents to prove knowledge of compliance.
- Penalties for unregistered agents, including fines and blacklisting.
- Mandatory disclosure of agent registration numbers in all transactions.
This eliminates fly-by-night operators and improves professionalism in the sector.
How do I check a project’s RERA status and approvals online in 2025?
In 2025, RERA 2.0 has made it simple for buyers to verify projects online.
Steps to check status:
- Visit your state RERA portal.
- Enter the project’s RERA ID (mandatory for all advertisements).
- View approvals, escrow details, construction progress, and expected completion dates.
This easy online system minimizes fraud and boosts buyer confidence.
What’s the difference between RERA 2.0 and the Model Tenancy Act for renters?
RERA 2.0 and the Model Tenancy Act are often confused, but they serve different purposes.
- RERA 2.0: Focuses on buyers and developers, ensuring accountability, refunds, transparency, and possession timelines.
- Model Tenancy Act: Regulates landlord-tenant relationships, ensuring fair rental practices, rent caps, and eviction rules.
Both laws complement each other but serve different segments of the housing market.
For a complete perspective on how rental reforms complement these buyer protections, don’t miss our detailed blog on “Model Tenancy Act“.
Conclusion
RERA 2.0 has reshaped the Indian real estate landscape by empowering buyers with strong rights, ensuring accountability from developers, and creating digital transparency. It introduces stricter penalties, robust escrow account safeguards, faster dispute resolution, and guarantees such as refunds and defect liability. With these changes, homebuyers in 2025 can approach property investment with more confidence than ever before.
At Housiey, we believe in simplifying the home-buying journey with transparent insights and builder connections.
If you found this guide helpful, don’t miss our detailed blog on “RTI Application Guide“, which will help you understand how to seek information directly from government bodies.
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