As a home buyer, are you aware of your rights and duties under RERA? If not, then this informative guide is for you! The Real Estate Regulatory Authority, i.e. RERA, was introduced in 2016 and implemented in 2017 across all Indian states to boost and streamline the real estate market. The RERA Act has not only made the real estate sector transparent but also provided certain rights to homebuyers. However, to strike a perfect balance between the interest of the developers and homebuyers, the RERA Act also lays down the duties of the homebuyers.
Section 2(d) of the RERA act states that an allotte or homebuyer involves a person who acquires the said real estate property through sale or transfer but does not involve a tenant. Now, when it comes to the rights and duties, Section 19 under Chapter 5 of the RERA Act 2016 lays down certain rights and duties of allottees or homebuyers listed below. Have a look!
Rights of Homebuyers
1. Right to obtain information
The first right that a homebuyer has under RERA Act is the “Right to obtain information”. Every homebuyer is entitled to obtain detailed project information in relation to sanctioned plans, RERA registration number, layout plans etc. In addition to this, the homebuyer must also know the specifications approved by the competent authority.
2. Right to claim possession
The Right to claim possession is another important right that a homebuyer has under RERA. The homebuyer has complete right to claim the possession of the real estate property. The possession of the property also involves the possession of common areas in case all the related formalities have been met, and required remuneration has been paid.
3. Right to know completion schedule
As every real estate project takes time to complete, the homebuyer holds the right to know the completion schedule. The homebuyer has every right to know the stage-wise time schedule of completion of the real estate project. This moreover involves provisions for water, electricity, sanitation and other amenities and services stated in the terms and conditions of the sale agreement.
4. Right in case of any defects
There are times when a real estate property has certain defects or problems that cannot be ignored. So, a homebuyer holds complete rights in case of any sort of defects. In case there are any structural defects or issues in the quality of the real estate property within 5 years of possession, the builder of the property will have to correct or rectify the defects within 30 days. However, one thing to note here is that the builder cannot charge any extra cost to the buyer for rectifying the defects.
5. Right to have documents
Another significant right that a homebuyer holds under RERA Act is the “Right to have documents”. A real estate transaction involves a handful of documents that must be readily available to the homebuyers. After handing over the physical possession of the real estate property by the developer, the homebuyer is entitled to have all the related documents and plans, including that of common areas.
6. Right to claim a refund
Last but not the least, the homebuyer has the right to file a complaint under the RERA Act and claim a refund of the amount paid along with compensation and interest from the builder in case the builder fails to comply with the terms and conditions of the real estate agreement. Moreover, the homebuyer can also claim a refund if the builder is unable to give possession of the real estate property as per the terms mentioned in the sales agreement or due to discontinuation of his business as a developer on account of revocation or suspension of his registration. But despite that, the developers must be given one more chance to set a timeline for the delivery, failing which they will have to pay the requisite fines and penalties. Besides this, a homebuyer can file a complaint against the builder with Appellate Tribunal in case he/she is not satisfied with the decision of RERA.
Now, let’s take a look at the duties of a homebuyer under the RERA Act!
Duties of Homebuyers
1. Duty to make payment
As a homebuyer, it is your duty to make the payment. Every homebuyer who has entered into a sales agreement to take a real estate property holds the duty to make necessary payments within the stipulated time. Not only the principal amount, but the homebuyer is also responsible for making the payment involving registration charges, electricity and water charges, municipal taxes, ground rent, municipal taxes etc.
2. Duty to research
Every homebuyer is responsible for researching everything before making a real estate purchase. A smart and knowledgeable homebuyer is fully aware, conducts detailed research and background checks on real estate projects and is not easily influenced by market trends. Due thoroughness even on the projects registered by RERA is a must as RERA has surely brought in more transparency and accountability, but precaution is always better than cure.
3. Duty to participate in the registration
It is the duty of every homebuyer to actively participate in the registration process of the conveyance deed of the said real estate property.
4. Duty to pay interest
For safeguarding the interest of the home sellers, it is the duty of the homebuyer to pay interest for any delay in payment towards any amount to be paid. However, the amount of interest can be curtailed as mutually agreed between the homebuyer and the developer.
5. Duty to take possession
Another duty of a homebuyer under the RERA Act is the “Duty to take possession”. Every home buyer must take physical possession of the real estate property within a time period of 2 months from the date when the Occupancy Certificate is issued. The idea behind this is to reduce the number of unoccupied real estate properties with the builder.
6. Duty to form Association of buyers
The final duty of a homebuyer under the RERA Act is “Duty to form an association of buyers”. Every buyer of a real estate property has a duty to participate in the formation of a federation or association of homebuyers to look after the welfare of its residents.
To provisions of the RERA Act are for the benefits of both homebuyers and home sellers alike. The main purpose behind this is not to be biassed towards a particular stakeholder but to seamlessly regulate the entire real estate market.
Also Read: 5 Best Reasons to Choose - Clicbrics