Buying a house is a major financial commitment, and checking the price, location and facilities is only part of the process. Homebuyers should also understand their legal rights if a builder delays possession, changes the approved design or fails to deliver the features promised during the sale.
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, establishes important obligations for property developers and provides remedies to buyers in specific situations. These protections cover advance payments, possession delays, unauthorised changes, construction defects and misleading advertisements.
Here are five important RERA rights that buyers should understand before investing in a residential property.
1. Builders Cannot Collect More Than 10% Before Signing an Agreement
Section 13 of RERA restricts a builder from accepting more than 10% of the cost of an apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale with the buyer and registering that agreement.
This requirement helps ensure that buyers have a formal record of the transaction before making a substantial payment towards the property.
The agreement for sale should establish the terms of the purchase, including details of the development work, payment schedule and expected possession date. Buyers should carefully review these conditions before proceeding with further payments.
2. Buyers Can Claim Refunds or Interest for Delayed Possession
A delay in receiving possession can create financial difficulties for homebuyers, particularly those paying rent alongside home loan instalments. Section 18 of RERA provides remedies when a promoter fails to complete the project or hand over possession in accordance with the agreement for sale.
If the buyer decides to withdraw from the project because of the promoter’s failure, the promoter must refund the amount received, along with prescribed interest and applicable compensation under the Act.
Alternatively, buyers who choose to remain in the project can claim interest for every month of delay until possession is handed over, as provided by the law.
The remedy available depends on the circumstances of the case and the applicable provisions of RERA.
3. Builders Cannot Make Certain Changes Without Buyers’ Consent
Section 14 of RERA protects homebuyers against unauthorised changes to their booked properties.
A promoter generally cannot make additions or alterations to an individual apartment without the allottee’s prior consent, except for permitted minor alterations.
The law also places restrictions on changes to sanctioned building plans, layouts and specifications, including common areas. Such changes generally require the prior written consent of at least two-thirds of the allottees, excluding the promoter, subject to the applicable statutory provisions.
This protection is particularly important when a developer proposes changes to the original floor plan, apartment specifications or shared facilities after bookings have been completed.
Buyers should retain copies of the approved plans and their agreement for sale so that they can compare the promised features with the final property.
4. Homebuyers Can Seek Repairs for Eligible Defects Within Five Years
RERA also establishes responsibilities for developers when qualifying defects are identified after possession.
Under Section 14(3), if an allottee reports a structural defect or another covered defect relating to workmanship, quality or services within five years from the date of handing over possession, the promoter must rectify it without additional charge within 30 days.
If the promoter fails to complete the required rectification within this period, the buyer is entitled to appropriate compensation under the Act.
The provision also addresses other specified defects and obligations covered by the law. However, ordinary maintenance problems do not automatically qualify for relief under this section. Whether a particular issue is covered depends on the nature of the defect and the applicable legal provisions.
5. RERA Provides Remedies for False Property Advertisements
Property advertisements often highlight amenities, construction quality, layouts and other features to attract buyers. If the actual project differs from the representations made, Section 12 of RERA may provide a legal remedy.
The provision addresses loss or damage caused by incorrect or false statements in advertisements, notices, prospectuses or model apartments.
When a buyer makes an advance payment or deposit based on such representations and suffers a loss, the law provides remedies subject to the applicable conditions. If the buyer chooses to withdraw from the proposed project, the promoter may be required to return the investment with prescribed interest and compensation.
This protection can be relevant when advertised amenities, specifications or other promised features do not match what the developer ultimately delivers.
What Should Homebuyers Remember About RERA?
RERA provides several important safeguards for property buyers, including restrictions on advance payments, remedies for possession delays, protection against certain unauthorised changes, obligations to rectify qualifying defects and relief for misleading advertisements.
The Act also establishes a mechanism through which buyers can file complaints concerning violations of their rights.
Before purchasing a property, buyers should carefully read the agreement for sale, verify the project’s approved details and retain relevant payment records and advertisements. If a dispute arises, they should review the applicable RERA provisions and state-specific rules or seek professional legal advice.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. The availability of remedies depends on the facts of each case, the agreement for sale, applicable provisions of RERA and relevant state rules. Homebuyers should consult the official RERA authority in their state or a qualified legal professional for guidance on a specific property dispute.
