RERA
RERA
Built for Real Estate: Escrow Infrastructure that Delivers Control and Compliance
Built for Real Estate: Escrow Infrastructure that Delivers Control and Compliance
Built for Real Estate: Escrow Infrastructure that Delivers Control and Compliance
Castler’s RERA-compliant escrow platform enables developers, PropTechs, and regulators to manage project funds with automation, transparency, and control. It supports milestone-based disbursals, digital onboarding, and real-time visibility - ensuring regulatory alignment, faster execution, and increased buyer trust. Built to scale with project demands, Castler simplifies fund flow management across the real estate ecosystem.
Castler’s RERA-compliant escrow platform enables developers, PropTechs, and regulators to manage project funds with automation, transparency, and control. It supports milestone-based disbursals, digital onboarding, and real-time visibility - ensuring regulatory alignment, faster execution, and increased buyer trust. Built to scale with project demands, Castler simplifies fund flow management across the real estate ecosystem.
Castler’s RERA-compliant escrow platform automates fund flows with milestone-based disbursals and real-time visibility—driving compliance, speed, and buyer trust.
Why Real Estate Needs Escrow-Led Trust
Why Real Estate Needs
Escrow-Led Trust
Real estate fraud in India is a significant concern, with various scams affecting numerous individuals, several common fraudulent practices have been identified:
Real estate fraud in India is a significant concern, with various scams affecting numerous individuals, several common fraudulent practices have been identified:
Title Fraud
Title Fraud
Involves forging property documents to falsely claim ownership. Victims may unknowingly purchase properties with fraudulent titles, leading to legal disputes and financial losses.
Involves forging property documents to falsely claim ownership. Victims may unknowingly purchase properties with fraudulent titles, leading to legal disputes and financial losses.
Misrepresentation
Misrepresentation
Builders or sellers provide false information about a property, such as its specifications or legal approvals, misleading buyers into unfavorable deals
Builders or sellers provide false information about a property, such as its specifications or legal approvals, misleading buyers into unfavorable deals
Delayed Possession
Delayed Possession
Builders delay handing over properties beyond the agreed timeline, causing financial strain to buyers who may be paying both rent and home loan EMIs.
Builders delay handing over properties beyond the agreed timeline, causing financial strain to buyers who may be paying both rent and home loan EMIs.
Unauthorized Sales
Unauthorized Sales
Properties are sold without proper authorization or necessary approvals, leading to legal complications for unsuspecting buyers.
Properties are sold without proper authorization or necessary approvals, leading to legal complications for unsuspecting buyers.
Real estate escrow is a safe financial transaction in which a third-party agent—usually a bank or escrow site—holds funds and documents on behalf of developers and buyers pending certain contractual conditions.
In the Indian scenario, particularly under RERA (Real Estate Regulation and Development Act), escrow accounts are required to ensure that funds in projects are utilized solely for their respective purposes. Escrow protects buyers by releasing payments to builders only upon achievement of the stages of construction and verification.
With digital escrow solutions such as Castler, the whole process, from account creation and agreement verification to payment release and reporting, can be automated, tracked, and compliant all the way, eliminating fraud, delays, and money disputes.
Real estate escrow is a safe financial transaction in which a third-party agent—usually a bank or escrow site-holds funds and documents on behalf of developers and buyers pending certain contractual conditions.
In the Indian scenario, particularly under RERA (Real Estate Regulation and Development Act), escrow accounts are required to ensure that funds in projects are utilized solely for their respective purposes. Escrow protects buyers by releasing payments to builders only upon achievement of the stages of construction and verification.
With digital escrow solutions such as Castler, the whole process, from account creation and agreement verification to payment release and reporting, can be automated, tracked, and compliant all the way, eliminating fraud, delays, and money disputes.
Why Escrow Services for Real Estate?
Why Escrow Services for
Real Estate?
Ensures Compliance with Terms
Ensures Compliance with Terms
Escrow ensures that the agreed-upon terms—such as property inspections, repairs, or title transfers—are fulfilled before the funds are released, providing security for both parties.
Escrow ensures that the agreed-upon terms—such as property inspections, repairs, or title transfers—are fulfilled before the funds are released, providing security for both parties.
Secure Handling of Funds
Secure Handling of Funds
Real estate transactions typically involve large sums of money. Escrow securely holds these funds until all parties have met the necessary conditions, reducing the risk of financial mismanagement or disputes.
Real estate transactions typically involve large sums of money. Escrow securely holds these funds until all parties have met the necessary conditions, reducing the risk of financial mismanagement or disputes.
Confidence for All Parties
Confidence for All Parties
When the Funds are kept in escrow then the cashflow of the project can be Monitored. As Realtor/Builder can only use Fraction of the amount out of the collections from buyers, Then Buyer will also have a confidence on that their Money is kept safe and in case of delayed delivery and Project non-completion, Buyers have a surety of their money being safe in the escrow account.
When the Funds are kept in escrow then the cashflow of the project can be Monitored. As Realtor/Builder can only use Fraction of the amount out of the collections from buyers, Then Buyer will also have a confidence on that their Money is kept safe and in case of delayed delivery and Project non-completion, Buyers have a surety of their money being safe in the escrow account.
What is RERA ?
What is RERA ?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Indian law aimed at increasing transparency, accountability, and efficiency in the real estate sector. It protects homebuyers' interests by regulating real estate developers and agents, ensuring timely project completion, and establishing a grievance redressal mechanism.
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Indian law aimed at increasing transparency, accountability, and efficiency in the real estate sector. It protects homebuyers' interests by regulating real estate developers and agents, ensuring timely project completion, and establishing a grievance redressal mechanism.
3 accounts are opened under RERA
3 accounts are opened
under RERA
Master collection account
Master collection account
RERA designated account
RERA designated account
Realtor Operations Account
Realtor Operations Account
What is RERA agreement?
What is RERA agreement?
A RERA Agreement is a legally binding contract between a homebuyer and a real estate developer governed by the Real Estate (Regulation and Development) Act, 2016 (RERA). It ensures transparency and accountability in real estate transactions. The agreement typically includes details of the property (e.g., carpet area, price), project completion timelines, payment schedules, obligations of both parties, and penalties for non-compliance. It safeguards buyers' investments and provides legal recourse in case of disputes or delays.
A RERA Agreement is a legally binding contract between a homebuyer and a real estate developer governed by the Real Estate (Regulation and Development) Act, 2016 (RERA). It ensures transparency and accountability in real estate transactions. The agreement typically includes details of the property (e.g., carpet area, price), project completion timelines, payment schedules, obligations of both parties, and penalties for non-compliance. It safeguards buyers' investments and provides legal recourse in case of disputes or delays.
RERA guidelines for Escrow Account
RERA guidelines
for Escrow Account
1. Mandatory Escrow Accounts
Mandatory Escrow Accounts
All the collections received from the Real estate buyers need to be deposited in a ratio of 70:30 where 70% of funds received from homebuyers into a dedicated escrow account which is RERA Designated account. This account is exclusively for covering land acquisition and construction costs of the specific project.
The remaining 30% of the funds can be used for Constructions & operating expenses of the projects
All the collections received from the Real estate buyers need to be deposited in a ratio of 70:30 where 70% of funds received from homebuyers into a dedicated escrow account which is RERA Designated account. This account is exclusively for covering land acquisition and construction costs of the specific project.
The remaining 30% of the funds can be used for Constructions & operating expenses of the projects
2. Funds Restricted for Project Use
Funds Restricted for
Project Use
Funds deposited in the escrow account are strictly for construction and development of the designated project.
Diversion of funds to other projects or personal use is strictly prohibited.
Funds deposited in the escrow account are strictly for construction and development of the designated project.
Diversion of funds to other projects or personal use is strictly prohibited.
3. Withdrawal Based on Progress
Withdrawal Based on Progress
Developers can withdraw funds only in proportion to the project completion stage. Withdrawals must be certified by:
An architect or engineer verifying project progress.
A chartered accountant confirms that withdrawals align with work completed.
Developers can withdraw funds only in proportion to the project completion stage. Withdrawals must be certified by:
An architect or engineer verifying project progress.
A chartered accountant confirms that withdrawals align with work completed.
4. Annual Auditing for Transparency
Annual Auditing for Transparency
The escrow account must be audited annually by a certified chartered accountant within six months of the financial year’s end.
This ensures compliance with RERA provisions and provides transparency in fund utilization.
The escrow account must be audited annually by a certified chartered accountant within six months of the financial year’s end.
This ensures compliance with RERA provisions and provides transparency in fund utilization.
5. Misuse Prevention
Misuse Prevention
Funds collected for one project cannot be used for another.
The escrow system safeguards homebuyers' money and ensures every rupee contributes to the designated project.
Funds collected for one project cannot be used for another.
The escrow system safeguards homebuyers' money and ensures every rupee contributes to the designated project.
6. Strict Penalties for Non-Compliance
Strict Penalties for Non-Compliance
Non-compliance with escrow provisions can result in:
Fines of up to 10% of the project’s estimated cost.
In severe cases, imprisonment of the developer.
Non-compliance with escrow provisions can result in:
Fines of up to 10% of the project’s estimated cost.
In severe cases, imprisonment of the developer.
7. Homebuyer Protection
Homebuyer Protection
The escrow system enhances confidence by ensuring homebuyers’ funds are used exclusively for project completion.
It promotes transparency and accountability, reducing financial risks for buyers.
The escrow system enhances confidence by ensuring homebuyers’ funds are used exclusively for project completion.
It promotes transparency and accountability, reducing financial risks for buyers.
Castler can help real estate owners (builders) to manage their escrow accounts for better transparency of funds, track the payment release status from the escrow account and for better reconciliation of accounts.
Castler can help real estate owners (builders) to manage their escrow accounts for better transparency of funds, track the payment release status from the escrow account and for better reconciliation of accounts.
Ensure RERA Compliance with Castler’s Digital Identifier for Escrow Accounts
Ensure RERA Compliance with Castler’s Digital Identifier for Escrow Accounts
RERA, introduced in 2016, mandates that developers maintain escrow accounts to ensure funds from homebuyers are used solely for the specific real estate project, preventing misuse for other purposes.
RERA, introduced in 2016, mandates that developers maintain escrow accounts to ensure funds from homebuyers are used solely for the specific real estate project, preventing misuse for other purposes.
Real estate escrow is a secured mechanism where banks hold funds on behalf of real estate owners, and buyers deposit their payments into the designated escrow account. Payments are released from the escrow only upon fulfilling the conditions outlined in the escrow agreement.
Real estate escrow is a secured mechanism where banks hold funds on behalf of real estate owners, and buyers deposit their payments into the designated escrow account. Payments are released from the escrow only upon fulfilling the conditions outlined in the escrow agreement.
Managing multiple escrow accounts for various projects is challenging for developers, and traditional escrow services are often slow, expensive, and vulnerable to fraud.
Managing multiple escrow accounts for various projects is challenging for developers, and traditional escrow services are often slow, expensive, and vulnerable to fraud.
Castler offers an efficient and secure solution for managing RERA escrow accounts, providing fast, economical, and transparent digital escrow services that mitigate fraud risks and simplify the process.
Castler offers an efficient and secure solution for managing RERA escrow accounts, providing fast, economical, and transparent digital escrow services that mitigate fraud risks and simplify the process.
Castler's digital identification services ensure secure management of RERA accounts, providing peace of mind for homebuyers while enabling developers to focus on timely project delivery.
Castler's digital identification services ensure secure management of RERA accounts, providing peace of mind for homebuyers while enabling developers to focus on timely project delivery.
While RERA escrow accounts protect homebuyers and ensure developer accountability, managing them is challenging. Castler offers an efficient solution, helping both developers and homebuyers through streamlined, secure, and transparent escrow management.
While RERA escrow accounts protect homebuyers and ensure developer accountability, managing them is challenging. Castler offers an efficient solution, helping both developers and homebuyers through streamlined, secure, and transparent escrow management.
Workflow of funds using Castler
Workflow of funds using Castler
Castler’s Escrow Solution for Real Estate
Castler’s Escrow Solution
for Real Estate
Secured and transperant Fund transfer mechanism
Secured and transperant Fund transfer mechanism
Notifications to relevant parties on the Payment status & payment approval reminder
Notifications to relevant parties on the Payment status & payment approval reminder
Notifications to relevant parties on the Payment status & payment approval reminder
Customizable & configurable escrow mechanism in the CASTLER's dashboard
Customizable & configurable escrow mechanism in the CASTLER's dashboard
Long standing Partnership with Multi Trustee for ensuring Payment safety
Long standing Partnership with Multi Trustee for ensuring Payment safety
Let’s work together to create a safer, more resilient future for your business.
Let’s work together to create a safer, more resilient future for your business.
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