RERA and Homebuyer Rights: What Every Buyer Should Know

Acquiring a house is one of the most significant decisions that people make. However, over the years, buyers have experienced several difficulties ranging from delayed possession, project advertisement fraud, unaccounted costs, and lack of transparency by the developers. In an attempt to improve the process, the government introduced RERA Act in 2016 to provide oversight of the real estate business.

Currently, the act is a key player in offering protection to property buyers in India. As such, if you plan on buying property in the future, it is important to know about your legal rights provided by this act.

What Is RERA and How It Protects You as a Property Buyer?

RERA Act is an acronym for the Real Estate Regulation and Development Act. This legislation is aimed at making it easier for developers and consumers to regulate the Indian real estate sector with enhanced levels of transparency.

Without the introduction of RERA, the options were very few when it came to delays or defaults made by developers in fulfilling the commitments made. Under the new law, developers must register their projects with the respective State RERA before selling properties.

What is RERA, and how does it protect homebuyers? It can be explained simply as a framework which ensures accountability from the developer’s end and provides the consumer with an avenue for resolving any issues.

Rights of Homebuyers under RERA

One of the major milestones achieved by RERA is the protection of buyers. The knowledge about the rights of homebuyers under RERA is very important in helping buyers buy property with ease.

Right to Transparent Information 

The homebuyers have the right to receive all the required information pertaining to the project. These include information like the approvals received, land ownership status, layout plans, possession timeline, and construction status. There is no reason why developers should withhold any vital information from the homebuyers.

Right to Timely Possession 

Delayed project delivery was a common practice before the introduction of RERA. Now under the provisions of RERA, builders are legally obligated to honor the possession timeline. Otherwise, buyers can claim their rights against the builders.

Right to Quality Construction

In case there are any defects or quality issues found within five years after possession of the building, the developer must fix the issue without demanding any payment from the homebuyer.

Right to Fair Treatment

This implies that the buyers cannot get trapped into one-sided contracts that are favorable to the developers.

These are some of the answers to the question like: What are the rights of a homebuyer under RERA? 

Advantages of RERA for Property Buyers

Apart from being legally protected through the Act, benefits of RERA for property buyers include:

• Greater transparency in project-related information 
• Lower chances of any form of fraud occurring
• Enhanced accountability on the part of developers
• Financial discipline by the developer during construction
• More effective dispute resolution system
• Greater trustworthiness among home buyers and investors alike

These are just some of the benefits that buyers can now enjoy thanks to the implementation of the Act.

RERA Guidelines All Buyers Should Know About

There are certain RERA guidelines that buyers should always keep in mind.

Some of these include:

• All eligible projects are supposed to be registered prior to commencing sales.
• There is supposed to be a separate bank account set aside for project funds.
• Information about the status of construction should be regularly updated online at RERA’s website.
• Real estate agents working on registered projects are also supposed to register themselves.
• Any changes to the approved plan of a project must first be approved by a majority of allottees.

Can I Claim a Refund Under RERA?

One question that homebuyers often have about the Real Estate Act is, “Can I get a refund under RERA?”

Most of the time, the answer is “Yes”. If the project cannot be completed within the stipulated time frame or if the buyer is not able to get possession of his/her flat, he/she can file a request for a refund along with an interest claim, as per the terms of the Act.

According to circumstances, the homeowner can either stay involved in the project and ask for compensation due to delays or opt out of the project and demand a refund.

How Can I Verify My Project’s RERA Registration Number?

Before booking any project, it is essential to know whether it is registered with the concerned authority.

This brings us to the question of “How to verify RERA registration number?” There are some very easy steps to follow. Just log on to the official website of your state’s RERA office, enter your project number or developer’s name and view the details.

How Long Does a RERA Complaint Take?

A related common query concerns the duration of a RERA complaint, How long does a RERA complaint take?

While the time required will depend largely on the type of issue and the specific authority in each state, in most cases, the time required to resolve a complaint under RERA is significantly shorter than in case of litigation processes. Authorities typically aim to dispose of complaints within around two months although some complaints could require longer periods of time.

For buyers suffering from any delays or facing contract disputes and other types of issues, the new law has made it easier to address their grievances.

Conclusion

Since the introduction of the RERA Act in India, there has been a significant change in how real estate transactions are handled in the country. The law brings about an increased level of transparency in the process and ensures greater accountability which benefits home buyers greatly.

In the event that you plan on buying your first home or another one for investment purposes, the rights of homebuyers under RERA, the guidelines provided by the act, and ways in which you can address your complaints can go a long way.