Homebuyer Rights Under RERA: Everything You Must Know Before Buying a Property

Homebuyer Rights Under RERA: Your Ultimate Guide to Secure Property Investments

Buying a home isn’t just a transaction - it’s a life changing decision. However, delays, hidden costs, and fraudulent practices have long troubled homebuyers. To address these issues, the Indian government introduced the Real Estate Regulatory Authority (RERA) in 2016 to ensure transparency and protect homebuyers from unethical builder practices.

If you are planning to buy a property, understanding your rights under RERA is crucial. This guide covers everything from project timelines and compensation for delays to refund policies and legal protections for homebuyers.

What is RERA & Why Was It Introduced?

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring accountability, transparency, and efficiency into India's real estate sector. It applies to all residential and commercial projects exceeding 500 square meters or more than eight apartments and requires builders to register their projects with state RERA authorities.

Objectives of RERA:

• Ensuring Fair Practices - Buyers receive authentic project details, preventing misleading advertisements.

• Timely Project Completion - Developers must deliver projects on time or compensate buyers for delays.

• Standardized Pricing - RERA defines "carpet area" to prevent builders from overcharging buyers.

• Buyer Protection - If builders fail to deliver, buyers can file complaints and claim refunds with interest.

Key Rights of Homebuyers Under RERA

1. Right to Information

Homebuyers have the legal right to access complete project details, including:

• Approved layouts and specifications

• Construction progress

• Utility provisions (water, electricity, sanitation)

• Financial approvals

Developers must register their projects with RERA and upload details to the official RERA website for buyer transparency.

2. Right to Timely Possession

Delays in project completion have been one of the biggest concerns for homebuyers. Under RERA:

• Developers must deliver homes on time, as per the sale agreement.

• If delayed, buyers can claim monthly interest until possession is handed over.

• If the builder fails to complete the project, buyers can opt out and claim a full refund with interest.

3. Right to Compensation

If a buyer receives a defective property or faces construction delays, they can legally demand compensation.

• Any structural defects within five years of possession must be fixed free of cost by the builder.

• If not resolved within 30 days, buyers can claim monetary compensation.

4. Right to Quality Construction

Builders must adhere to quality standards, ensuring:

• No structural defects

• No low-grade materials

• Proper safety standards

If buyers find defects, the builder must fix them at no extra cost.

5. Right to Financial Transparency

To prevent fund mismanagement, RERA mandates:

• Builders must deposit 70% of project funds into a dedicated bank account.

• Money from one project cannot be diverted to another.

• Changes to project plans require two-thirds of buyers’ approval.

6. Right to Refund & Exit

If a project is delayed or fails to meet promised specifications, buyers can withdraw and claim a refund with interest.

7. Right to File Complaints

Buyers can file complaints if:

• Builders fail to meet contractual obligations

• Projects are delayed beyond promised timelines

• Construction quality is substandard

Complaints can be lodged directly with the state RERA authority or escalated to the Real Estate Appellate Tribunal if not resolved.

Duties of Homebuyers Under RERA

While RERA protects buyers, they also have certain responsibilities:

• Timely Payments - Buyers must pay installments as per the sale agreement.

• Interest on Delayed Payments - If buyers fail to pay on time, they must pay interest (MCLR + 2 percent).

• Taking Possession - Buyers must accept possession within two months of the occupancy certificate.

• Registering Property - Buyers should assist builders in property registration and documentation.

• Association Formation - Once possession is given, buyers must form a Resident Welfare Association (RWA).

Conclusion: How RERA Protects You

RERA has transformed India's real estate sector, ensuring that homebuyers are no longer at the mercy of builders. With strict penalties and legal backing, this act has made property transactions safer, more transparent, and buyer friendly.

Before investing, always check if a project is RERA registered and read the fine print. A little awareness today can save huge legal headaches tomorrow.

FAQs on RERA & Homebuyer Rights

Q1: What is the main purpose of RERA?

A: RERA was introduced to bring transparency, accountability, and efficiency into real estate transactions and protect homebuyers from fraud and project delays.

Q2: Can a homebuyer claim a refund under RERA?

A: Yes, if a project is delayed beyond the agreed timeline, buyers can exit and claim a full refund with interest.

Q3: How does RERA ensure timely possession?

A: Developers must deliver projects on time or pay monthly interest to buyers for the delay.

Q4: What if the builder does not resolve construction defects?

A: If a builder fails to fix issues within 30 days, buyers can claim compensation or legal action through RERA.

Q5: Can builders change project layouts after selling units?

A: No. Any layout change requires the approval of at least two-thirds of buyers.

Q6: How can I check if a project is RERA-registered?

A: Visit your state’s RERA website and search for the project by its registration number.

Q7: What if I am not satisfied with the RERA ruling?

A: Buyers can appeal the decision to the Real Estate Appellate Tribunal for further action.

Q8: Is RERA applicable to all real estate projects?

A: RERA applies to all projects above 500 sq.m. or with more than 8 apartments.