RERA: The NRI Property Buyer’s Best Friend
Before RERA (2016), buying Indian property was a leap of faith — delayed projects, changed specifications, diverted funds, and zero accountability. For NRIs buying remotely, this was even riskier.
RERA changed the game by requiring:
- Mandatory registration of all projects before sale
- 70% of buyer funds kept in escrow (can’t be diverted)
- Quarterly progress updates publicly available
- Penalty mechanism for delays and non-compliance
How to verify a project (3-step process)
- Ask for the RERA number — every legitimate builder will have one. It looks like:
P52100001234 (format varies by state) - Search on the state portal — use the links above to go directly to the correct state portal
- Check the details — confirm project location, builder name, completion date, and complaint history
Red flags to watch for
- Project not found on RERA portal
- Builder has multiple complaints or adverse orders
- Completion date has been extended multiple times
- Financial statements show significant discrepancies
- Marketing materials don’t mention RERA number
Special considerations for NRIs
- Power of Attorney (PoA) — get it attested at the Indian consulate before your India visit
- FEMA compliance — all payments must route through NRE/NRO/FCNR accounts
- TDS on resale — buyer must deduct TDS at 20% (LTCG) or 30% (STCG) when buying from an NRI seller
- Stamp duty — same as resident rates in most states (some states offer concessions)