What are the rights and responsibilities of homebuyers under RERA?

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), homebuyers are granted several rights to protect their interests and ensure they are not exploited by developers. At the same time, homebuyers also have certain responsibilities they must adhere to during a property transaction. Here’s a breakdown of the rights and responsibilities of homebuyers under RERA:

Rights of Homebuyers Under RERA

1. Right to Transparency in Information
   • Project Details: Homebuyers have the right to receive clear, accurate, and complete information about the project, including its RERA registration number, approvals, layout plans, timelines, and project updates.
   • Builder Information: The developer must disclose details like the ownership of the land, legal title of the property, and approvals obtained from local authorities.
   • Timeline and Completion Date: Homebuyers must be informed of the expected possession date and the project completion date, along with any changes or delays.
2. Right to Timely Delivery
   • Possession on Time: Homebuyers have the right to receive possession of the property on or before the promised date. Any delay from the developer’s side will result in compensation for the buyer, as mandated by RERA.
   • Penalty for Delay: If the developer fails to deliver the property on time, the buyer is entitled to a refund along with interest or compensation for the delay.
3. Right to Legal Recourse and Redressal
   • Dispute Resolution: If a homebuyer faces issues such as project delays, poor construction quality, or deviations from agreed specifications, they can file a complaint with the Real Estate Regulatory Authority (RERA) for dispute resolution.
   • Consumer Protection: Buyers can approach RERA for compensation or other remedies if the project fails to meet the standards or specifications set out in the agreement.
4. Right to Quality Assurance
   • Construction Quality: Developers are obligated to deliver homes of the promised quality and structure. Any defects identified within five years of possession must be rectified by the builder at no extra cost to the buyer.
   • Defects Liability: RERA ensures that the builder corrects any structural defects or poor workmanship within 5 years from possession, which includes the structural integrity and the quality of materials.
5. Right to Get Title of the Property
   • Clear Title: Homebuyers are entitled to buy properties with a clear title, meaning the property must be free from any legal disputes, mortgages, or encumbrances.
   • Legal Protection: RERA ensures that the land is legally and officially transferred to the buyer, and the necessary documentation (like the sale deed) is properly executed.
6. Right to Payment in Proportion to Work Completed
   • Payment Schedule Linked to Progress: Under RERA, homebuyers should only make payments that are proportionate to the construction work completed. Developers cannot demand full payment upfront or for work not yet completed.
   • Payment as Per Agreement: Payments for an under-construction property should follow the construction schedule outlined in the sale agreement, and the buyer has the right to question or delay payments if the construction is not progressing as promised.
7. Right to Seek Refund
   • If the developer fails to complete the project on time or does not deliver the property as agreed, the homebuyer has the right to seek a full refund along with interest or compensation for the delay.
8. Right to Access Project Progress
   • Developers are required to update the status of their projects regularly on the RERA portal, which allows homebuyers to track construction progress and any potential issues or delays.

Responsibilities of Homebuyers Under RERA

1. Payment of Dues on Time
   • Paying as Per the Agreement: Homebuyers are responsible for making payments to the developer as per the payment schedule mentioned in the sale agreement. They must not delay payments unless the builder fails to adhere to the progress or quality of work.
   • Advance Payment: The buyer can only be asked for advance payments that are proportional to the completed construction. Any payments beyond the agreed schedule may violate the terms set by RERA.
2. Cooperation with the Developer
   • Providing Necessary Documentation: Homebuyers are responsible for submitting required documents to the developer for processing the sale, registration, and other legal formalities.
   • Adhering to the Terms of the Agreement: Homebuyers must adhere to the terms and conditions of the sale agreement, including following rules and regulations set by the developers for the use of common areas, if applicable.
3. Inspecting the Property
   • Due Diligence: It is the responsibility of the homebuyer to carry out due diligence before purchasing a property. This includes verifying that the project is registered under RERA, checking the title deed, and ensuring that the developer has received all necessary approvals.
   • Legal and Financial Prudence: Buyers must verify that the property is free from any encumbrances, legal disputes, or unpaid dues.
4. Providing Clear Instructions for Sale Agreement
   • Clarity on Specifications: Homebuyers should ensure that all specifications related to the project are clearly mentioned in the sale agreement. If the specifications are unclear or incomplete, it could lead to disagreements in the future.
   • Understanding Terms: Buyers must carefully read the agreement and understand their rights and obligations, including details about the payment schedule, delivery date, and penalties for delay.
5. Not Engaging in Fraudulent Practices
   • Honesty and Transparency: Homebuyers must avoid engaging in fraudulent or illegal activities, such as false claims, misrepresentation of income, or identity, while applying for home loans or signing agreements.
   • Conforming to Legal Norms: Buyers must ensure that their dealings with the developer and agents comply with the legal provisions of the RERA Act, ensuring a transparent transaction.
6. Reporting Defects or Issues
   • RERA Complaint: Homebuyers must inform the developer about any construction defects within the specified period (usually five years) after taking possession of the property.
   • Defects Notification: If any issues arise post-possession, the buyer is responsible for reporting the defects to the developer for resolution.

Summary of Rights and Responsibilities of Homebuyers:

Rights of Homebuyers:

1. Transparency and Information: Right to clear, accurate, and timely information about the project.
2. Timely Possession: Right to receive possession on time and compensation for delays.
3. Legal Recourse: Right to approach RERA for dispute resolution and redressal.
4. Quality Assurance: Right to receive quality construction and remedy for defects.
5. Clear Title: Right to buy a property with a clear legal title.
6. Progress Tracking: Right to check the project’s progress through RERA updates.
7. Proportionate Payment: Right to pay only as per the construction progress.
8. Refund and Compensation: Right to seek a refund or compensation if the project is delayed.

Responsibilities of Homebuyers:

1. Timely Payments: Ensure payments are made according to the agreed schedule.
2. Cooperation with Developer: Provide necessary documents and follow agreed terms.
3. Due Diligence: Verify the project’s registration, title, and approvals before purchasing.
4. Clear Sale Agreement: Ensure that all terms and conditions are clear in the agreement.
5. Honesty: Avoid engaging in fraudulent practices during the transaction.
6. Defects Reporting: Report construction defects in a timely manner after possession.

By adhering to these rights and responsibilities, homebuyers can ensure that they are protected under the law, making the real estate transaction smoother and more transparent. RERA has played a key role in enhancing the overall accountability of developers while safeguarding homebuyers’ interests.