Rights of Home Buyers Under RERA: Key Protections Every Buyer Should Know

Buying a home in Gurgaon is a significant investment, and homeowners possess certain rights that safeguard their interests. However, many buyers remain unaware of these rights, which can lead to disputes with builders or sellers. It is crucial to understand how the law protects homebuyers during the purchasing process. This blog focuses on the key aspects of RERA and buyer rights, which aim to ensure greater transparency and security in real estate transactions.

About Real Estate Regulatory Authority (RERA)

The Real Estate Regulatory Authority (RERA) was established under the Real Estate (Regulation and Development) Act, 2016. This legislation was passed by the Indian Parliament and came into effect on May 1, 2016. It protects buyers from fraudulent activities by builders. It fosters the investment process by creating a well-organised, properly regulated, and controlled real estate market. Some of the benefits of this Act are as follows:

• Better transparency- RERA requires developers to disclose all information about their project.
• Timely project completion- They must adhere to the deadlines specified in the contract. If they fail to do so buyers can seek compensation.
• Fair measurement of property- RERA established the standard measurement of carpet space. This stops builders from overcharging purchasers.
• Buyer protection- If buyers are unhappy, they may seek out the RERA authority to resolve the issue quickly.

Rights of Homebuyers Under RERA Act

Check the list below to learn more about the rights available to homebuyers under RERA.

1. Right to Information

RERA enables homebuyers to access all information related to construction. They can view approved plans, layouts, and specifications. Buyers can also check the timelines for each stage of the project. This includes details regarding water supply, sanitation, electricity, and other amenities promised in the sales agreement. Developers are required to register their projects with RERA and provide all necessary information, which buyers can access on the RERA website.

2. Right to Timely Possession

Under RERA, homebuyers have the right to receive their project on time. Developers are required to hand over possession by the deadline stipulated in the sales agreement. If the project is delayed, buyers are entitled to compensation; they are eligible to receive monthly interest until they get possession of their property. If the developer fails to complete the project within the agreed timeframe, buyers can opt to exit the project and receive a full refund of their money along with interest.

3. Right to Seek Compensation

If the builder delays the transfer of the property, buyers can claim compensation. Buyers can also lodge a complaint if any structural defect becomes apparent within five years of taking possession. The builder is required to rectify these defects free of cost within 30 days of the buyer’s complaint. If the buyer is not satisfied, they can seek compensation.

4. Right to Quality Construction

Under RERA provisions regarding buyers’ rights, builders in Gujarat are required to construct homes in accordance with the quality standards specified in the sale agreement. If any defects arise, the builder must rectify them free of cost. This rule applies to issues related to structural defects, poor construction, substandard quality, or service-related problems. Once notified, the builder is allowed a period of 30 days to resolve these issues.

5. Right to Transparency in Transactions

Under RERA regulations, builders are required to maintain a separate bank account for each project and deposit a specified portion of the project funds into it. This ensures that the buyers’ money is used exclusively for that specific project and not diverted elsewhere.

Buyers have the right to access financial reports. Builders cannot make any alterations to the approved plan unless two-thirds of the buyers consent to the changes.

6. Right to a Refund

Under buyer rights, customers can withdraw from a project if they are dissatisfied. They may also choose to exit the project if the developer fails to fulfill the terms of the contract.

If the project is not completed on schedule or if RERA regulations are violated, customers can demand a refund of their money along with interest. This legal right protects customers from fraudulent deals by safeguarding their investments.

7. Right to File Complaints

If the builder fails to comply with the sale agreement, the buyer can file a complaint with RERA. If they believe the decision is incorrect, they can approach RERA’s Real Estate Appellate Tribunal for further action.

The right to appeal allows them to challenge the decision and seek a fair review. If the decision is deemed unjust, it can be set aside.

Duties of Homebuyers Under RERA Act

The following guidelines will aid buyers to avoid legal trouble.

• Duty to make payment: Homebuyers are required to pay the stipulated amount to the builder within the timeframe specified in the sale agreement. The payment schedule encompasses all items such as registration costs, municipal taxes, electricity and water bills, maintenance charges, and ground rent.
• Duty to pay interest: If the buyer delays payment, they may be required to pay interest on the outstanding amount. According to RERA, the interest rate is calculated by adding 2 percent to the ‘Marginal Cost of Lending Rate’ (MCLR).
• Duty to participate in the registration: It is essential for buyers to provide the necessary legal cooperation to the builder to complete the property’s conveyance deed (deed of transfer of ownership).
• Duty to take possession: Upon completion of the project, the builder is required to hand over possession of the building to the buyer. The buyer must take possession within two months from the date of receiving the Occupancy Certificate.
• Duty to form an association of buyers: After taking possession of their homes, buyers are required to form an association to look after the welfare of the residents.

What If Your Flat Is Not Delivered as Promised? (Watch Video)

Discovering that your new home does not match the initial promises made can be very stressful. However, RERA has established strict regulations to protect homebuyers from issues such as unauthorized alterations or discrepancies in size.

In this short video, we explain the legal rights available to you if your builder alters the design or delivers a unit that is smaller than promised:

• Changes to Sanctioned Plans: Builders cannot hastily alter the building’s design after selling units. This video explains that obtaining the buyers’ consent is mandatory before making any changes.
• Carpet Area Mismatches: If the actual area is not as large as stated in the contract, there is a legal right to receive compensation for the shortfall in area.

Watch the full video to learn how to verify your agreement before taking possession and ensure that your investment is secure.

Conclusion to Rights of Buyer

RERA has made the real estate market more transparent and secure. To ensure greater accountability, developers are required to comply with the law and adhere to quality standards. Buyers have the right to access project information, enabling them to make informed decisions. Understanding these rights is crucial before purchasing a property. With its stringent guidelines, RERA protects buyers and ensures that property transactions are safer.

Frequently Asked Questions