Residential
Difference Between RERA-Registered and RERA-Approved Projects: A Homebuyer’s Guide to Smarter Real Estate Decisions
August 11, 2025
In the rapidly moving Indian real estate sector, navigating legal terminology and regulatory jargon can be intimidating, especially for a first-time purchaser. One of the most common and critical sources of confusion is the difference between RERA-registered and RERA-approved properties.
The two terms are sure to appear side by side in advertisements, but they mean very different things and only one offers genuine legal protection. The difference is understood to be more than a game of semantics. It's keeping your investment safe, maintaining project transparency, and holding developers to legal accountability.
This blog explores the Real Estate (Regulation and Development) Act (RERA) in detail, explaining the difference between registered and approved projects and how to make informed decisions in an industry where clarity is in short supply.
What is RERA?
The Real Estate Regulatory Authority (RERA) was established by the RERA Act of 2016, an initiative of the Government of India to regulate the real estate sector and ensure transparency and accountability. Its primary function is to protect homebuyers from forgery, delays and malpractice by establishing oversight and accountability over builders and developers.
RERA mandates that every residential and commercial real estate project (over a certain threshold) be registered with the state government RERA authority before any sale, marketing, or advertising action. It also offers legal responsibility, construction schedule compliance, proper use of finances and general corporate governance.
What are RERA-Registered Projects?
RERA-registered projects have been officially submitted to and approved by the state's Real Estate Regulatory Authority (RERA). This registration is a mandatory legal requirement under the RERA Act, ensuring the developer complies with all required rules and regulations before selling or marketing the property.
Also Read - 8 Things You Need to Know About RERA
This is what it includes and why it is significant:
- RERA Registration Number: Every RERA-registered project is assigned a unique registration number. This number confirms that the project has been posted on the RERA website and can be verified by any potential buyer.
- Submission of Documents: The developer must submit preliminary documents such as land ownership records, layout and sanctioned plans, construction schedule and estimated budget. RERA verifies these before approval.
- Disclosure of Promoters: The promoters' names, project heads and other key stakeholders involved in the development must be disclosed for accountability.
- Commitment to RERA Guidelines: Developers must follow RERA's lawful standards, including completion timelines, quality norms and financial transparency.
Benefits of RERA-Registered Projects
- Legal Transparency: Buyers can access all verified project information, including approvals, updates and possession dates, directly on the state RERA portal.
- Financial Restrictions: Builders must deposit 70% of what they receive from customers into an escrow account that is used only for developing the project. This minimises the risk of fund diversion.
- Early Possession: Builders are statutorily required to complete the project within the period set at the time of registration. A default can attract penalties.
- Compensation in the Event of Delay or Misrepresentation: According to the Act, if the builder delays or defaults, the buyer can recover compensation or even a refund.
- Standardised Sale Agreements: Under RERA, one standard form of sale agreement must be used, which reduces the possibility of hidden clauses and presents the buyer with equitable terms.
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RERA-registered projects offer validity, responsibility and buyer-centric protection—today's gold standard in realty deals. Reputed developers like Brigade consistently align with RERA compliance, reinforcing their commitment to trust, transparency and timely delivery.
What are RERA-Approved Projects?
“RERA-approved” is not a statutorily defined term under the Act. "RERA-approved" is applied by builders to cheat buyers into believing a project is legally registered, but it may be under registration or not registered.
In fact:
- "RERA-approved" is not defined under the Act.
- Projects may misuse the term to look credible without legal sanction.
- No registration number = no legal safeguard for the buyer.
So, if a project is only "RERA-approved" and not RERA-registered, it enjoys no legal sanctity. Always ask for the official RERA registration number and certificate.
Key Differences: RERA-Registered vs RERA-Approved Projects
| Feature | RERA-Registered Project | RERA-Approved Project |
|---|---|---|
| Legal Recognition | Officially recognised under the RERA Act | Not recognised under RERA |
| Registration Number | Mandatory and traceable on the RERA portal | Often absent or misleading |
| Transparency | Full disclosure of project details online | Limited or no public information |
| Protection for Buyers | Legally enforceable rights | No legal protection under RERA |
| Penalties on Builders | Builder liable for delay or frauds | No recourse available for buyers |
| Compliance | Adheres to RERA guidelines and timelines | May not comply with any norms |
| Marketing Claims | Can legally advertise post-registration | May falsely advertise under “approval” |
Why You Should Choose Only RERA-Registered Projects
Uncertainty is not just perilous—it's expensive, regarding real estate. While "RERA-approved" may seem compliant, it has no statutory basis under the Real Estate (Regulation and Development) Act. Most developers use it as a marketing gimmick, riding consumer bewilderment and creating a false impression of safety. Unfortunately, this may result in lost investments, delayed possession and an inability to recover at the hands of the law.
Understanding the Marketing Trap
In practice, "RERA-approved" is loosely used to describe pending registration applications that have not yet been approved. Worse still, some developers apply it without any intention of final registration, banking on consumer gullibility.
Suggested Read - Top 10 Frequently Asked Questions About RERA
This misleading terminology exploits the lack of faith in the market among non-conforming developers to sell, promote and mobilise funds with no legally binding obligation to deliver deadlines, unveil plans or uphold standards.
Legal and Financial Consequences
The effects on buyers can be drastic. Without registration under RERA:
- You lack any legal rights under the Act
- You may not approach RERA tribunals for redressal
- The resale value of your property may decrease because of non-compliance
- Sanctions on loans may be refused or deferred by banks
From a planning point of view, a RERA-registered property is not just safer—it's smarter. Banks and NBFCs prefer it due to its organised documentation and legal backing, which reduces underwriting risk and improves loan processing efficiency.
How to Verify a Project’s RERA Registration
The digitisation of state RERA websites has made checking a project's legitimacy easier than ever. But here's what most buyers miss:
Go Beyond the Registration Number
While entering the RERA registration number is a good start, always go one step further:
- Match the details on the website with what the builder has shared.
- Check for updates, such as extension filings, delay declarations and pending approvals.
- Review complaint records to assess the developer's track record.
Each of these insights is available on your state’s RERA portal—and they’re your best bet for evaluating a project's risk profile before committing funds.
Conclusion
In the ever-evolving Indian real estate marketplace, transparency and compliance are no longer optional—they are mission-critical. There is a difference between RERA-approved projects and those that claim to be RERA-approved, and it is not semantics; it's a line of demarcation between regulatory assurance and marketing deception.
With high-ticket investments and long-term money on the table, the consumer cannot live without terms that are clear or false promises.
RERA registration is not just a technocratic box-ticking exercise. It's a formal, auditable stamp of approval from the Real Estate Regulatory Authority affirming that the project has breached compliance hurdles. RERA-approved, however, is not a legally enforceable term and typically equates to a fig leaf to cover up non-compliance or schemes pending approval.
As a buyer or investor, you owe it to yourself to look beyond billboards and brochures. Insist on a RERA registration number, verify it on the official state RERA website, and proceed. In a field where misinformation can set you back by years of savings, you are your best asset if you are educated. Be safe, not speculative. Be genuine, not verbal. Be RERA-registered only.
FAQs
1. What is the difference between RERA-registered and RERA-approved projects?
RERA-registered projects are officially recognised under the law, with a unique registration number and compliance requirements. RERA-approved is not a legal term and is often used for misleading marketing.
2. Is “RERA-approved” the same as “RERA-registered”?
No. “RERA-approved” has no legal standing under the Act. Only RERA-registered projects are protected by law.
3. How can I check if a project is RERA registered?
Visit the official RERA website for your state and search by project name or developer. Look for a valid registration number and certificate.
4. Can builders use “RERA-approved” in ads without registration?
Technically, yes—but it’s misleading. You should demand the official RERA registration details before proceeding with any investment.
5. Why is RERA registration essential for homebuyers?
It ensures legal protection, timely project delivery, financial discipline, and transparency, safeguarding your investment in an otherwise volatile sector.
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