The Real Estate Regulatory Authority (RERA) was established in Telangana under the Real Estate (Regulation and Development) Act, 2016, to protect property buyers from builder fraud, project delays, and misleading advertising. For NRI buyers investing in Hyderabad real estate from abroad, RERA provides a framework of legal protections that did not exist before 2017 — but only if you know how to use them.
Telangana RERA has registered over 5,000 projects since inception, and the authority has resolved hundreds of buyer complaints against builders. Understanding what RERA covers, what it requires from builders, and how NRIs can verify compliance before investing is essential for anyone considering property purchase in Hyderabad.
What RERA Requires from Builders
Every real estate project in Telangana with more than 8 units or a plot area exceeding 500 square metres must be registered with RERA before the builder can advertise, market, or sell any unit. The registration requires the builder to submit approved building plans, land title documents, project completion timeline, a separate escrow account for the project, and detailed information about the promoter's track record.
Once registered, the builder must deposit 70% of the amounts received from buyers into a designated escrow account. This money can only be used for construction and land costs of that specific project — not for other projects, business expenses, or personal use. This single provision prevents the most common builder fraud: collecting money from buyers in one project to fund another, leaving the first project delayed or abandoned.
Builders must also provide accurate carpet area measurements using RERA's standardised definition, which excludes external walls, common areas, and service shafts. This eliminates the practice of inflating "super built-up area" to charge buyers for space they never receive.
How NRIs Can Verify RERA Registration
Before investing in any Hyderabad property, NRIs should verify the project's RERA registration on the official Telangana RERA website at rera.telangana.gov.in. The portal allows you to search by project name, promoter name, or RERA registration number. A valid registration will display the project details including approved plans, completion timeline, and promoter information.
If a builder claims their project is RERA-exempt because it falls below the size threshold, verify this claim independently. Some builders deliberately split larger projects into smaller phases to avoid RERA registration, which is itself a violation. If the builder is evasive about RERA registration or claims it is "in process" for an extended period, treat it as a significant risk signal.
Beyond checking registration, verify that the builder has been submitting quarterly progress reports to RERA, which is a mandatory requirement. The RERA portal displays these reports, and consistent reporting indicates an active, compliant project. Missing quarterly reports suggest the builder is either behind schedule or not complying with RERA requirements.
NRI-Specific RERA Protections
RERA provides several protections that are particularly valuable for NRI buyers. The Act requires all agreements for sale to be registered, which creates a permanent legal record of the transaction terms. Before RERA, many builders used unregistered agreements that could be modified or denied later.
If the builder delays possession beyond the agreed timeline, NRI buyers are entitled to compensation at the State Bank of India's highest marginal cost of lending rate (MCLR) plus 2%, calculated from the committed possession date until actual delivery. This compensation provision has real teeth — Telangana RERA has ordered builders to pay significant compensation in multiple cases.
NRI buyers can also file complaints with RERA online, which is particularly convenient for those living abroad. The complaint can be filed through the RERA portal, and hearings can often be attended via video conference. While engaging a local lawyer for RERA proceedings is advisable, the process is designed to be more accessible and faster than traditional civil courts.
What RERA Does Not Cover
Understanding RERA's limitations is equally important. RERA does not cover resale transactions between two individuals — only primary sales from the builder to the first buyer. If you are buying a resale apartment in Hyderabad, RERA protections do not apply to that transaction (though the building itself should still be in a RERA-registered project).
RERA also does not guarantee the builder's financial solvency. If a builder goes bankrupt, RERA's escrow provisions may limit losses but cannot prevent them entirely. Similarly, RERA does not cover property defects discovered after the five-year structural warranty period specified in the Act.
For properties in approved layouts outside municipal limits, RERA requirements may differ. Plot purchases in peri-urban areas around Hyderabad — popular investment zones like Shadnagar, Adibatla, and Pharma City — should be verified carefully for RERA applicability.
Pre-Purchase Checklist for NRI Buyers
Before committing to any Hyderabad property purchase, NRI buyers should verify RERA registration and check quarterly compliance reports, obtain and review the title search report covering at least 30 years of ownership history, confirm that the land has no pending litigation or revenue disputes on the Dharani portal, verify that approved building plans match what is being constructed, check that the escrow account is active and receiving the required deposits, and review the builder's track record with previously completed projects.
Probity's Title Verification Report covers all these checks plus a formal legal opinion from a qualified Hyderabad property lawyer. For NRIs investing significant amounts in Hyderabad real estate, this due diligence is not optional — it is the minimum required to protect your investment.
How Probity Supports NRI Property Buyers
Probity provides comprehensive pre-purchase due diligence for NRI buyers, including RERA verification, title search and legal opinion, physical site inspection with photo and video documentation, builder track record analysis, and market value comparison with recent transactions in the area.
After purchase, Probity's property management services ensure ongoing compliance — monitoring society formation, tracking builder commitments for common amenities, and managing the transition from builder maintenance to society self-management. For under-construction properties, we provide periodic construction progress reports with photographic evidence, giving NRI buyers visibility into their investment's physical progress without having to visit Hyderabad.
Frequently Asked Questions
Visit the official Telangana RERA website at rera.telangana.gov.in and search by project name, promoter name, or RERA registration number. A valid registration displays project details including approved plans, completion timeline, and promoter information.
Builders must deposit 70% of amounts received from buyers into a designated escrow account. This money can only be used for construction and land costs of that specific project — not for other projects or personal use. This prevents the common fraud of diverting buyer funds to other ventures.
Yes. NRI buyers can file complaints through the Telangana RERA portal online, and hearings can often be attended via video conference. While engaging a local lawyer is advisable, the process is designed to be more accessible and faster than traditional civil courts.
No. RERA only covers primary sales from the builder to the first buyer. Resale transactions between two individuals are not covered by RERA protections. However, the building itself should still be in a RERA-registered project if it was originally subject to RERA requirements.
If the builder delays possession beyond the agreed timeline, NRI buyers are entitled to compensation at SBI's highest MCLR plus 2%, calculated from the committed possession date until actual delivery. Telangana RERA has ordered builders to pay significant compensation in multiple cases.
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