‘RERA was meant to protect us, but it now feels like a mere formality,’ Bengaluru homebuyers express concerns

One of the main issues highlighted is the lack of proper documentation, particularly regarding land ownership. The post also points out that developers are frequently granted deadline extensions for delayed projects, often citing labour shortages, material delays, or ‘external factors.’ Additionally, there are concerns about the lack of oversight on escrow account funds, which should ensure that money collected from buyers is used exclusively for the intended project.

“RERA was meant to protect us, but it now feels like a mere formality—just something developers check off the list,” the post concluded.

“We are in the middle of a real estate boom where it is becoming hard to find a 3BHK for less than ₹2 crore. While buyers are pouring their life earnings, there is very little guarantee and assurance provided by government processes. RERA was supposed to provide some level of confidence to buyers. We know that it is a broken system,” the post added.

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No clarity on ownership of land: Redditors

One of the issues raised is the lack of proper documentation, especially related to land ownership. Under the RERA Act, developers must upload documents when registering a project. These are meant to help buyers verify important details before investing.

However, according to the post, one of the most critical documents—the land title deed—is often missing, incomplete, or replaced with unrelated papers.

Buyers said on Reddit that it is common to see developers upload Khata certificates or tax-paid receipts instead of title deeds. These documents only confirm municipal records or tax payments, not legal ownership.

“This is highly misleading because one can have a Khata without holding actual ownership of the land. More alarmingly, the presence of competing claims on the land is often not disclosed at all,” a Redditor said.

In some cases, developers have reportedly uploaded PDFs or documents simply stating ‘Not Applicable’ in place of essential title records—and still received RERA approval, the user posted.

Builders get project extensions easily, say buyers

The post also highlights how developers easily get deadline extensions for delayed projects. Buyers say the reasons are often the same—labour shortage, material delays, or ‘external factors.’

“RERA approves these requests without much checking. In Karnataka, the extension fee is just half of the original registration cost. That’s not a big deal for most builders. There’s no real penalty or accountability,” the post said.

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Questions over escrow fund use

Another serious concern is the lack of checks on escrow account funds, which are meant to ensure that money collected from buyers is used only for the specific project.

Buyers say there is no clear tracking of how this money is spent. Developers, they claim, move funds around without any audits or oversight.

“On paper, everything looks fine. But in reality, there’s no real enforcement. It’s just for show,” one buyer wrote.

Is RERA a formality?

Many homebuyers feel that RERA has become more of a ‘paper-based process’ than a true regulatory body.

Homebuyers write that buyers seeking RERA intervention for delays often face prolonged proceedings and minimal compensation. Some have even withdrawn complaints after builders offered token compensation.

“RERA was meant to protect us. But it feels like a formality now—something developers just have to check off the list,” the post concluded.