Buying a property is one of the top financial goals for many people. It comes with numerous benefits, including tax benefits and financial security in the long run. Purchasing a property is expensive and involves significant costs, but many Indians increasingly see real estate as one of the safest investment options. Real estate sector in India has traditionally remained unregulated, with risks of project delays and many builders going into insolvency. However, the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) in 2016 has been instrumental in transforming the real estate sector in India. The RERA has lays down several regulations and protects the rights of homebuyers. Most states and union territories have set up Real Estate Regulatory Authority to oversee the real estate market in their region. The rights and duties of homebuyers or allottees have been clearly specified under Section 19, Chapter 5 of the RERA Act, 2016. When investing a property, a buyer should be aware of their rights and duties to avoid any issues with property ownership.
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What is the purpose and applicability of RERA?
The RERA was introduced with the aim of regulating the real estate market and addressing key challenges related to project completion, construction quality, and several other aspects. The regulatory authority provides buyers with various rights to protect their interests. RERA regulations have been formulated to streamline the processes in the sector and bring greater accountability on the part of developers and realtors.
RERA regulations apply to both residential and commercial projects, if the project size exceeds 500 square meters or has more than eight apartments. The projects include both new and ongoing projects that have not received a completion certificate before the implementation of RERA.
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Rights of a homebuyer under RERA
Right to seek information
Most states/ UTs have their official RERA websites, enabling buyers to access real-time information regarding projects, including:
- Project completion timeline
- Necessary permissions and approvals from relevant authorities
- Project’s legal status
- Sanctioned plans and layout plans
- RERA registration number
- Developer’s profile and track record
It is mandatory for the developers to disclose these details, which allows buyers to make an informed decision regarding their property purchase.
Right to know state-wise schedule
Homebuyers have the right to know the stage-wise time schedule of project completion. This also entails the various services specified in the terms and conditions of the sale agreement and the availability of facilities such as water supply, sanitation, electricity, etc.
Right to timely possession of property
The RERA also entitles a homebuyer to claim possession of the property, including possession of the common areas by the association of allottees, provided all the formalities have been completed and payment has been made. Developers must adhere to the rules related to project completion and timelines as laid down under RERA Act.
Right to claim refund
RERA protects the interests of buyers who wish to withdraw from the project when the developer fails to fulfil their promises. The homebuyers have the right to claim the refund of the amount paid along with interest and compensation from the developer if the developer fails to adhere to or is unable to give possession of the property as per the terms of the sale agreement or due to discontinuance of the business as a builder on account of suspension or revocation of the registration.
The buyer can register a complaint with the relevant state RERA to claim the refund. However, RERA provides developers with a chance to set a reasonable timeline for the delivery and if they fail to comply with this timeline, they are liable to pay the requisite penalties. If buyers are not satisfied with RERA’s decision, they can submit a complaint with the Appellate Tribunal.
Right to have documents
A homebuyer must obtain some crucial documents after possession, including sale deed, possession letter, copy of occupancy certificate, etc. A buyer has the right to access the relevant documents and plans, including that of common areas after the developer has given physical possession of the property.
Right to compensation in case of defects
If there is a structural defect or any defect in workmanship, quality, provision or service related to the property that the buyer notices within five years after the possession of the house, they become entitled to get compensation. The defect must be rectified by the developer within 30 days, without any extra costs. In case the builder fails to do so, the buyer will be allowed to claim compensation for the same. Further, the buyer can claim compensation from the developer if there is a defect in the title is not barred by limitation.
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Right to file complaints
To enable buyers to file their complaints against developers, the authority has set up a grievance redressal mechanism. Buyers have the right to approach the Real Estate Regulatory Authority or the Appellate Tribunal for the resolution of disputes.
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Duties of a homebuyer under RERA
Duty to take possession of property
While the RERA mandates developers to adhere to the project completion timelines, it also specifies the duty of buyers to take possession of the property within a specified time. Homebuyers are required to take physical possession of the property within a period of two months of the occupancy certificate being issued.
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Duty to make payment
Every homebuyer who has entered into an agreement for sale to purchase a property is required to make necessary payments within the specified time and place in the agreement for sale, which include registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, etc.
Duty to pay interest
The RERA ensures transparency in property transactions by laying down rules to keep a check on payment delays. Homebuyers are liable to pay interest for any delay in payment towards any amount to be paid.
Duty to participate in the registration
The RERA lays down rules that mandate homebuyers to actively participate in the registration of the conveyance deed of the said property.
Duty to form association of buyers
Every homebuyer should participate towards the formation of an association or federation of homebuyers to ensure the welfare of its residents.
Housing.com News Viewpoint
The implementation of RERA has tremendously helped build trust among homebuyers, with various provisions in place to protect the interests of property buyers. The authority also lays down rules that developers and promoters must comply with, which ensures efficiency in operations and encourages fair practices. Buying a property is a huge financial investment and it is necessary for buyers to be aware of their rights so that they can safeguard themselves against non-compliant developers and seek solution when facing project delays or issues like poor construction quality.
FAQs
What are the rights of homebuyers under RERA?
RERA provides various rights to homebuyers, which include right to timely possession of property, right to claim refund, right to seek information, etc.
What are the duties of allottees under RERA?
Homebuyers are required to adhere to certain guidelines laid down by RERA. For example, they are required to take physical possession of the property within a period of two months of the occupancy certificate being issued.
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