Rights and Responsibilities of Homebuyers Under RERA
Owning a home is a lifelong dream for most individuals—a space where one can unwind, build memories, and enjoy personal comfort. However, buying property is also one of the most demanding financial decisions a person makes. It involves significant investment, extensive documentation, and long-term commitment.
In India, rising population density, limited land availability, and inflation have pushed property prices higher. While incomes have increased, housing affordability remains a concern. Additionally, property-related fraud and disputes continue to occupy a large portion of civil litigation. To safeguard buyers and bring accountability to the real estate sector, the Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced.
Homebuyer Protection Under RERA
RERA consists of ten chapters with ninety-two provisions. Chapter 5, particularly Section 19, clearly defines the rights and obligations of homebuyers, referred to as allottees under the Act.
An allottee is any individual who has been sold, transferred, or allotted a residential unit, plot, or building by a promoter, which includes developers, builders, or real estate companies.
Key Rights of Homebuyers Under RERA
1. Right to Transparent Information
Buyers have the legal right to access complete and accurate project information. This includes approved layouts, building plans, specifications, and all permissions granted by relevant authorities. These details must form part of the agreement for sale.
2. Right to Project Progress Updates
Allottees are entitled to receive regular updates regarding construction status, timelines, and the availability of promised infrastructure and utilities. Developers must disclose progress at defined stages to ensure transparency.
3. Right to Possession
Each buyer has exclusive rights over their individual unit, while common areas such as lobbies, corridors, and recreational facilities belong collectively to the association of allottees. Ownership rights are clearly demarcated to prevent disputes.
4. Right to Refund and Compensation
If a promoter fails to complete or deliver the property within the agreed timeframe, buyers are entitled to:
A full refund of the amount paid
Interest at the prescribed rate
Additional compensation for losses incurred
Buyers may file complaints with the RERA authority and, if dissatisfied, escalate the matter to the Real Estate Appellate Tribunal. Refund claims can arise due to delayed possession, cancellation of project registration, or discontinuation of the developer’s business.
Additional Safeguards Provided by RERA
False Commitments
If the delivered property does not match the promises made in advertisements or brochures, the buyer can withdraw from the agreement and claim compensation.
Structural or Construction Defects
If any structural defects or poor workmanship are identified within five years of possession, the promoter must rectify them within 30 days at no additional cost. Buyers may also seek financial compensation if defects are not resolved.
Delayed Possession
In cases where the builder misses the possession deadline, buyers have the right to terminate the agreement and claim a refund with interest and damages.
Defective Property Title
If the property has legal ownership issues or title defects, the buyer can claim compensation from the developer without any limitation period.
Impact of RERA on the Indian Real Estate Sector
The implementation of RERA has significantly transformed the real estate industry across Indian states:
Buyer confidence has improved, with an 8% rise in housing demand recorded in early 2018 following RERA enforcement.
Developers must register projects and disclose details such as approvals, carpet area, unit count, and timelines, eliminating misleading advertisements.
Accurate declaration of carpet area has become mandatory, preventing hidden costs.
Construction cannot begin without obtaining all statutory approvals, ensuring legal compliance.
Only environmentally compliant and financially disciplined developers remain active, improving overall market quality.
Developers are now required to deposit 70% of project funds into an escrow account, which can only be accessed after certification by an engineer, architect, and chartered accountant.
Buyers cannot be charged more than 10% of the total property cost before signing the sale agreement.
Interest rates applicable to both buyer and promoter for delays are standardized, ensuring fairness.
Duties and Responsibilities of Homebuyers
While RERA primarily protects buyers, it also outlines their responsibilities. Buyers must:
Make payments as per the agreed schedule
Participate in forming residents’ associations
Take possession within the stipulated time
Comply with the terms of the sale agreement
Renters, however, are not considered allottees under the Act and are excluded from these provisions.
Final Summary
RERA was introduced to bring transparency, fairness, and accountability to India’s real estate sector. While its primary objective is to safeguard homebuyers from exploitation, it also clearly defines their duties.
Almost all Indian states have implemented RERA, making it essential for buyers to understand their rights and obligations. As outlined in Section 19 of Chapter 5, knowing these provisions empowers homebuyers to make informed decisions and protects them from unfair practices.
Rights and Responsibilities of Homebuyers Under RERA
Owning a home is a lifelong dream for most individuals—a space where one can unwind, build memories, and enjoy personal comfort. However, buying property is also one of the most demanding financial decisions a person makes. It involves significant investment, extensive documentation, and long-term commitment.
In India, rising population density, limited land availability, and inflation have pushed property prices higher. While incomes have increased, housing affordability remains a concern. Additionally, property-related fraud and disputes continue to occupy a large portion of civil litigation. To safeguard buyers and bring accountability to the real estate sector, the Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced.
Homebuyer Protection Under RERA
RERA consists of ten chapters with ninety-two provisions. Chapter 5, particularly Section 19, clearly defines the rights and obligations of homebuyers, referred to as allottees under the Act.
An allottee is any individual who has been sold, transferred, or allotted a residential unit, plot, or building by a promoter, which includes developers, builders, or real estate companies.
Key Rights of Homebuyers Under RERA
1. Right to Transparent Information
Buyers have the legal right to access complete and accurate project information. This includes approved layouts, building plans, specifications, and all permissions granted by relevant authorities. These details must form part of the agreement for sale.
2. Right to Project Progress Updates
Allottees are entitled to receive regular updates regarding construction status, timelines, and the availability of promised infrastructure and utilities. Developers must disclose progress at defined stages to ensure transparency.
3. Right to Possession
Each buyer has exclusive rights over their individual unit, while common areas such as lobbies, corridors, and recreational facilities belong collectively to the association of allottees. Ownership rights are clearly demarcated to prevent disputes.
4. Right to Refund and Compensation
If a promoter fails to complete or deliver the property within the agreed timeframe, buyers are entitled to:
Buyers may file complaints with the RERA authority and, if dissatisfied, escalate the matter to the Real Estate Appellate Tribunal. Refund claims can arise due to delayed possession, cancellation of project registration, or discontinuation of the developer’s business.
Additional Safeguards Provided by RERA
False Commitments
If the delivered property does not match the promises made in advertisements or brochures, the buyer can withdraw from the agreement and claim compensation.
Structural or Construction Defects
If any structural defects or poor workmanship are identified within five years of possession, the promoter must rectify them within 30 days at no additional cost. Buyers may also seek financial compensation if defects are not resolved.
Delayed Possession
In cases where the builder misses the possession deadline, buyers have the right to terminate the agreement and claim a refund with interest and damages.
Defective Property Title
If the property has legal ownership issues or title defects, the buyer can claim compensation from the developer without any limitation period.
Impact of RERA on the Indian Real Estate Sector
The implementation of RERA has significantly transformed the real estate industry across Indian states:
Duties and Responsibilities of Homebuyers
While RERA primarily protects buyers, it also outlines their responsibilities. Buyers must:
Renters, however, are not considered allottees under the Act and are excluded from these provisions.
Final Summary
RERA was introduced to bring transparency, fairness, and accountability to India’s real estate sector. While its primary objective is to safeguard homebuyers from exploitation, it also clearly defines their duties.
Almost all Indian states have implemented RERA, making it essential for buyers to understand their rights and obligations. As outlined in Section 19 of Chapter 5, knowing these provisions empowers homebuyers to make informed decisions and protects them from unfair practices.