Buying a home? 5 RERA rights every homebuyer should know on builder delays, advance payments and construction defects
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.
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.
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.
The provision gives buyers options when a developer fails to meet the agreed timeline. The remedy available depends on the circumstances covered by the law.
Section 14 of RERA restricts a promoter from making additions or alterations to an individual apartment without the allottee's prior consent, subject to permitted minor alterations.
The law also regulates changes to sanctioned plans, layouts and specifications of buildings or common areas. Such changes generally require the prior written consent of at least two-thirds of the allottees, excluding the promoter, subject to the applicable statutory provisions.
This protection matters when a developer proposes changes to the layout, specifications or common areas after buyers have booked their homes.
Under Section 14(3) of RERA, if a buyer brings a structural defect or another covered defect in workmanship, quality or services to the promoter's notice within five years from the date of handing over possession, the promoter must rectify it without further charge within 30 days.
If the promoter fails to do so, the allottee is entitled to appropriate compensation under the Act.
The provision also covers other specified defects and obligations of the promoter under the agreement for sale. However, not every maintenance issue or defect will automatically qualify for relief under this section.
Section 12 of RERA addresses loss or damage caused by incorrect or false statements in advertisements, notices, prospectuses or model apartments.
Where a person makes an advance or deposit on the basis of such information and suffers loss or damage, the section provides for remedies. If the affected buyer chooses to withdraw from the proposed project, the promoter is liable to return the investment with prescribed interest and compensation, subject to the conditions of the provision.
This provision can be relevant when a property's advertised features, specifications or amenities differ from the representations made to prospective buyers.
RERA provides several protections against unfair practices and non-compliance by developers. These include restrictions on advance payments, remedies for delayed possession, safeguards against unauthorised changes, defect rectification obligations and relief for false or misleading advertisements.
The Act also provides a mechanism for filing complaints against violations. The protections available in an individual case depend on the applicable statutory provisions, the terms of the agreement and relevant state rules.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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