Understanding the Rights of a Buyer under RERA



This post has been written by Sukhleen Kaur Saluja, a 1st year Law Student from Amity University, Chhattisgarh


RERA it stands for Real Estate Regulatory Authority, it is an Act passed by the Indian Parliament. The Rajya Sabha passed the RERA Bill on 10th March, 2016 followed by Lok Sabha on 15th March, 2016  and came into force by 1st May, 2016 its aim is to create equitable and fair transaction between the buyer and the seller of properties, specially the primary market. RERA will give India real estate industry and first regulator and makes it mandatory for each states and union territory, to form its own regulator and frame the rules that govern the functioning of regulator. The main aim of RERA is to provide relief to the buyer and regulate the real estate sector. It has made several rights for the buyer and certain regulations that are to be followed by builders. Earlier the builders have unclear policy about the property to be sold so, they make their profit and fool the buyer as there was no clear legislation to govern the real estate sector and then real estate industry faced many drawbacks as the builders are declared to be insolvent and the buyer who all have invested their money is of no use and due to this many cases were filed in courts by the buyers and to protect the interest of the buyer and the seller the parliament passed this Act which is Real Estate Regulatory Authority,2016.


  1. The builder needs to publish all correct information about project from starting till completion of project with date to the buyer or allottee. This information should be available to RERA.
  2. The developer should provide atleast 5 years warranty for any structural defects in the building.
  3. It is mandatory to register every construction property where land is above 500 sq. meters or include eight apartments.
  4. The builder need to put 70% of the money received from the buyer into a different account. The money will be withdrawn as per the stage completion of project.


  1. Firstly its aim is to provide relief to the buyer as there was unclear policy of property so the developer fool the buyer but now because of RERA there are certain rights made for the buyer related to property papers, for refund, for information etc.
  2. It will provide a common ground for both allottee and the promoter which will reduce the risk which was faced before.
  3. It will ensure timely delivery of project which is a big sigh of relief for the buyer and the buyer can claim refund if the promoter fails to do what so was mentioned in the agreement, the buyer have right under this Act in     Section 19(4).
  4. A regulation was needed in order to revive confidence in our country’s real estate sector.
  5. RERA made it mandatory for all the states and union territories to have online registrations with documentation process made easy, consumers will benefit and save time.


  1. Registration:

BEFORE RERA: Before 2016, many projects started its transaction without valid registration

AFTER RERA: RERA made registration of each project compulsory for all, without registration they cannot proceed with any of the work.

  1. Time possession:

BEFORE RERA: Before this act there was no time for delivery of property to the buyer and the developer make delay for many years and many of the times the project was not even started.

AFTER RERA: It imposed certain rules regarding the regarding the delay of possession. It is mentioned in section 19(4) of the act.

  1. Essential Documents:

BEFORE RERA: Before RERA act the buyer or allottees hardly use to get the documents.

Also Read:  Summary of Places of Worship (Special Provisions) Act, 1991

AFTER RERA: After RERA it is compulsory for promoter to give all necessary documents to the buyer related the project. The documents like copy of registration, brochure etc.

  1. Carpet Areas:

BEFORE RERA: Earlier the builders use strategy that they either tell about the area of xxx sq. meter or they tell about the carpet areas of xxx sq. meter. Later they used to defend that there is difference between total area and the carpet area.

AFTER RERA: This act made it compulsory to mention the exact carpet area or the reasonable variation, now suppose they mention xx sq. ft, more or less then xxx sq. ft. so if the flat is of less carpet area , the buyer shall pay only for the area he is under possession.


Rights of allottees is defined under Section 19 of the Act [Section 19(1)-19(5)]

Section 19(1) Right to obtain Information: It tells us about the first right of the buyer that the buyer should have all the information related to the purchase of property, that what is sanctioned plan and the layout plan and also the information about the rules and regulations made under the agreement.

Section 19(2)Right to know completion schedule: It tell us that the buyer should know that in how much time the project will get completed and must know all of it in stage-wise including water, sanitation, electricity and other services as agreed between the buyer and the seller according to the terms and condition of agreement of sale.

Section 19(3) Right to claim possession:  The buyer shall entitle to claim the possession of apartment, plot or building including common areas in case all formalities all formalities have been completed and necessary remuneration is paid.

Section 19(4) Right to claim Refund:  The buyer shall claim for refund of amount paid and compensation from the promoter, if he fails to do whatever was mentioned in the agreement for property, then the promoter is bound to pay back the amount to the buyer as mentioned in the act but before that one more chance can be given the promoter and then if he fails they will have to pay penalties and also a complaint can also be filed with the Appellant Tribunal in case if buyer is not satisfied with  RERA’s decision.

Section 19(5) Right to have document:  The buyer or allottee has right over possession of documents and plans of the property, including common areas after having the physical possession of property.

If the developer or promoter fails to complete the project or unable to give possession then:

  • In case the buyer wishes to withdraw from the project then he should receive interest and compensation as given in act
  • In case if the buyer does not wish to withdraw from the project then he should be paid for every month delay with fixed rate till getting the possession.


This act is a positive change in term of increasing transparency in the real estate sector and provides common ground for promoter and allottee which reduce the risk which was faced earlier; the act will not only improve processing times and improve the transparency in the system. There are rights and duties of buyer which bound both buyer and seller and both have some obligations towards each other. However there is still need of improvement in the implementation of act and the act need legislative amendments.

[1] https://www.bankbazaar.com/home-loan/rera-act.html


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