10 Limitations of Rera – Everything You Should Know

10 Limitations of Rera: The Real Estate Regulatory Authority (RERA) is a regulatory body established in India to protect the interests of homebuyers and bring transparency and accountability to the real estate sector. Since its implementation, RERA has made significant strides in addressing various issues plaguing the industry. However, it is important to recognize that RERA also has its limitations. These limitations hinder its ability to fully achieve its objectives and create a seamless real estate environment. In this outline, we will explore and discuss the limitations of RERA, shedding light on the areas where improvements can be made. By understanding these limitations, we can identify opportunities to enhance the effectiveness and impact of RERA in the real estate sector.

Limitations of Rera

There are various limitations of rera. Some of them we have mentioned Limitations of Rera below.

Limited jurisdiction

One of the primary limitations of RERA is its jurisdiction, which is implemented at the state level in India. As a result, the effectiveness and enforcement of RERA can vary across different states. This inconsistency creates challenges in maintaining uniformity and adherence to regulations throughout the country.

Non-uniformity in Rules

While RERA provides a framework, each state has the authority to formulate its own rules and regulations within the broad guidelines set by the central law. This non-uniformity can lead to confusion and inconsistencies for developers and buyers operating in multiple states. The lack of standardized rules undermines the effectiveness of RERA as a comprehensive regulatory mechanism.

Also Read: TN Rera(Tamil Nadu)

Limited Enforcement Power 

RERA relies heavily on the cooperation and compliance of developers, builders, and other stakeholders in the real estate sector. However, RERA has limited power to enforce its decisions and regulations. This dependency on voluntary compliance can sometimes result in delays, non-compliance, or circumvention of the regulations, affecting the overall effectiveness of RERA.

Lack of Speed in Dispute Resolution 

While RERA aims to provide a streamlined dispute resolution mechanism, the process can still be time-consuming. There have been instances of backlogs and delays in receiving judgments, which hampers the timely resolution of disputes and adversely affects the interests of the buyers.

Inclusion of Ongoing Projects: 

RERA covers both new and ongoing real estate projects. However, the inclusion of ongoing projects in RERA’s purview raises questions regarding the extent to which these projects need to comply with the regulations. The lack of clarity in this regard creates ambiguity and potential loopholes for developers, which may compromise the effectiveness of RERA.

Limited Control Over Financial Aspects 

RERA primarily focuses on ensuring transparency in transactions and timely delivery of projects. However, it does not have significant control over the financial aspects of real estate projects, such as the pricing of projects or the financing options offered by developers. This limitation restricts RERA’s ability to address issues related to unfair pricing or financial malpractices in the sector.

Dependence on Self-disclosure

RERA relies on developers to provide accurate and complete information about their projects. However, there have been cases where developers have misrepresented or withheld crucial information, thus compromising the effectiveness of RERA’s transparency measures. RERA’s reliance on self-disclosure creates a vulnerability that can be exploited by unscrupulous developers.

Also Read: All About Rera Goa

Limited Coverage Of Commercial Real Estate 

While RERA primarily focuses on the residential real estate sector, its coverage of commercial real estate projects is relatively limited. This exclusion leaves a significant portion of the real estate market outside the purview of RERA’s regulations, potentially exposing buyers and investors in commercial projects to risks and uncertainties.

Lack of Awareness

Many buyers and even developers are still unaware of the existence and implications of RERA. This lack of awareness undermines the effectiveness of the regulations and limits the ability of buyers to exercise their rights and make informed decisions. Greater awareness and education regarding RERA are crucial for its successful implementation.

Limited Penalties and Consequences

Although RERA has provisions for imposing penalties on developers for non-compliance, the penalties may not always be sufficient to deter fraudulent practices or provide adequate compensation to affected buyers. Strengthening the penalty provisions and ensuring their consistent implementation is essential to enhance the deterrent effect of RERA.


In conclusion, while RERA has played a crucial role in bringing transparency and accountability to the real estate sector in India, it is not without its limitations. The jurisdictional variations, non-uniformity in rules, limited enforcement power, delays in dispute resolution, lack of clarity for ongoing projects, limited control over financial aspects, reliance on self-disclosure, inadequate coverage of commercial real estate, lack of awareness, and limited penalties all pose challenges to the effectiveness of RERA. Recognizing these limitations and taking steps to address them will be essential in further strengthening RERA’s impact and ensuring a fair and transparent real estate environment for all stakeholders involved.


Is RERA effective despite its limitations?

While RERA has limitations, it has significantly contributed to improving transparency and accountability in the real estate sector in India. It has provided a platform for homebuyers to assert their rights and seek remedies for any grievances. However, there is room for further refinement and strengthening of the regulations to address the existing limitations and enhance the overall effectiveness of RERA.

How can the limitations of RERA be addressed?

The limitations of RERA can be addressed by working towards standardizing rules and regulations across states, strengthening enforcement mechanisms, streamlining the dispute resolution process, providing clearer guidelines for ongoing projects, expanding the coverage of commercial real estate, increasing awareness among stakeholders, and implementing stricter penalties for non-compliance.

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