Buying a home? 5 RERA rights every homebuyer should know on builder delays, advance payments and construction defects

RERA gives homebuyers legal protection against excessive advance payments, delayed possession, unauthorised changes to property plans, construction defects and false advertising. Here are five rights buyers should know before purchasing a home.

Buying a home involves more than checking the price, location and amenities. Homebuyers also need to understand the legal protections available if a builder delays possession, changes the promised layout or fails to deliver what was advertised. The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, lays down several obligations for developers and gives buyers remedies in specified circumstances.

The law covers issues ranging from advance payments and changes to approved plans to defects after possession and misleading advertisements. However, the availability of a remedy depends on the relevant provision, the facts of the case and applicable state rules.

Here are five RERA rights homebuyers should know before purchasing a property.

1. A builder cannot take more than 10% before the agreement for sale

Under Section 13 of RERA, a promoter cannot accept 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.

The provision is intended to ensure that buyers have a formal agreement setting out the terms of the transaction before paying a substantial part of the property's cost. The agreement for sale is expected to specify details such as the development work, payment schedule and date of possession.

2. You can seek a refund or interest if the builder delays possession

Section 18 of RERA provides remedies when a promoter fails to complete a project or give possession in accordance with the agreement for sale.

If a buyer chooses to withdraw because of such a failure, the promoter is liable to return the amount received, along with prescribed interest and applicable compensation under the Act. If the buyer chooses to remain in the project, the promoter must pay interest for every month of delay until possession is handed over.