Summary of this article
RERA ensures transparency, timely delivery, and buyer protection
Verify registration, land titles, and written commitments
Informed buyers reduce risk and protect long-term investments
Investing in a home is one of the most significant financial and emotional decisions a person can make in their life. For most buyers, it involves years of saving, planning, and expectations in hopes of securing stability and security. The real estate sector does not hold the confidence of buyers, even though it experiences so much activity on a daily basis. Delayed projects, transparency issues, scams, and fraud have eroded the trust homebuyers have. When homebuyers recognise the challenges and know how the Real Estate (Regulation and Development) Act, 2016 (RERA) works in order to safeguard them, it is their first step towards buying a home.
While RERA has strengthened buyer protection in the past few years, buying a home still requires diligence, evaluation and awareness. Understanding your rights as a buyer and recognising potential risks is one of the initial steps towards homeownership.
Basic RERA Rights
RERA was formulated while recognising the discrepancy between developers and buyers by bridging it with transparency and fairness.
One of the most important rights under RERA is the right ot information. Developers are required to register their projects with the respective state RERAs before they are authorised to sell or even advertise. Only once they are registered will they be able to move ahead with the external formalities that involve the homebuyers. While registering, they must reveal detailed project information, land title details, construction timelines, and project status, and all this will also be made available for public viewing.
Another right of homebuyers is timely possession. Developers are bound to deliver the property by the date they have promised in the agreement. This also has legal consequences if they fail; buyers are entitled to compensation, or even a refund with interest.
RERA extends rights protection from false advertising. Any promises made in brochures, advertisements, or even model flats are binding the developer legally. This leaves no scope for the developer to blame the buyer for misinterpretation and avoid responsibility in such situations.
The Act even defines the difference between carpet area and built-up area, ensuring that buyers pay the price of the space inside the apartment. This eliminates the earlier malpractice of inflating prices by mentioning measurements like the super built-up area.
On top of this, RERA also imposes a defect liability period on the developer. This period lasts for five years from the date of possession. During this period, developers must rectify any defects or craftsmanship errors without charging the buyer. If the developers try to evade this, buyers can seek redressal through their dedicated state RERA authorities.
Things Buyers Must Keep in Mind
Even if there are strong legal safeguards in place, buyers must move with caution in the entirety of their home-buying journey. The first step is verifying whether the project is RERA-registered or not. Investing in an unregistered project exposes buyers to higher risks, causing a significant loss of money.
Next, an equally important thing is ensuring the clearance of the land title, making sure it is clear and legally valid. Buyers should confirm that the developer has the rightful ownership of the land and is free from disputes or pending litigation. A questionable land title can result in years of legal disputes and complications.
Buyers should avoid relying on verbal assurances made by sales representatives; only documented commitments are enforceable, and a valid form of proof in case things go south. Be it amenities promised, specifications or timelines that were stated orally, it is not a viable proof in the court.
Before accepting possession, buyers must conduct a thorough inspection of the property and match the property in front of them to what was promised in the approved plans.
Goldi Arora, co-founder & managing director, Property Master, says on the matter, "As a buyer, knowing one's rights in RERA is imperative to make any investment safe and secure. The buyers have the right to information about projects on a dedicated website, including the right to delivery of the property by the promised date, and a warranty against any defect in the property for five years. Most importantly, buyers have the right to compensation in case the property’s possession is unnecessarily delayed. As a safeguard, buyers should always check for the RERA registration of the project, besides ensuring that they possess the details of the entire sales agreement. If things are not going as per the buyer’s satisfaction, he/she file a complaint against the builders at the state RERA authority to settle the grievances. Homeowners also have the option of filing an appeal with the state Real Estate Appellate Tribunal (REAT)."
Buying a home is not just an emotional decision; it requires thorough proofreading, checks and formalities to be made before the buyer proceeds with the actual process. This is not delaying the process, but making sure that the property you buy does not end up being a pain in the long run.
