What are the Rights of Homebuyers Under RERA Act 2016 ?
RERA Act 2016: Homebuyers Rights & Key Protections Explained
Owning a home is a dream for many, and people work tirelessly for years to make this dream a reality. They invest their lifetime savings to purchase a home.
Since it involves a significant investment of hard-earned money, it’s essential for homebuyers to understand their rights to ensure they get a fair deal, free from frauds, manipulations, and disputes. In this blog, we will discuss the key rights every homebuyer should know under RERA act before they decide to buy a home.
What is the RERA Act?
The RERA Act, introduced in 2016 by the Indian Government, aims to ensure transparency and regulate real estate transactions across the country. The act establishes a Real Estate Regulatory Authority (RERA) in each state to oversee the region's real estate sector and protect the rights of homebuyers, sellers, and developers.
What Are the Rights of Homebuyers Under the RERA Act 2016?
Right to Obtain Information
Homebuyers have the right to request detailed information about the property they are buying. This includes specifics such as design, layout, specifications, construction progress, and more. Developers are obligated to provide this information as per the agreement. Today, developers often upload this data on the respective state’s RERA website, allowing buyers easy access to relevant project details.
Right to Know Completion Schedule
Buyers have the right to be informed about the completion schedule of the project. This includes updates from the start to finish, covering important aspects like lifts, power supply, and other services as agreed in the sale agreement.
Right to Claim Possession
Homebuyers are entitled to take possession of the property on the agreed completion date, as stated in the sale deed. If the developer fails to deliver on this promise, the buyer has the right to seek compensation from the developer.
Right to Claim Refund
If the developer does not meet the terms of the property agreement, the buyer can request a refund and compensation. However, the buyer must first give the developer an opportunity to resolve the issue. If the developer fails to address the concerns, penalties may apply, and the buyer can approach the Appellate Tribunal if unsatisfied with RERA’s decision.
Right to Quality Construction
Homebuyers have the right to receive the quality of construction promised in the agreement. This includes adherence to the agreed-upon layout, construction methods, and the quality of materials. If the builder does not meet these standards, the buyer can request a refund or ask the builder to correct the defects within 30 days. If the defects are not fixed, the buyer is entitled to a full refund.
Right to File Complaints
Homebuyers can file complaints with RERA if the developer fails to meet the agreed terms. If the buyer is dissatisfied with RERA’s decision, they can take the matter to the Real Estate Appellate Tribunal.
Homebuyers' Duties Under the RERA Act
• Pay the agreed amount to the builder on time.
• Include all applicable charges such as taxes, bills, and fees.
• Pay interest in case of delayed payments, calculated at the Marginal Cost Lending Rate (MCLR) + 2%.
• Assist the builder in registering the conveyance deed legally.
• Take possession of the property within two months after the occupancy certificate is issued.
• Form an association to manage the welfare of the residents.
Conclusion
Understanding your rights as a homebuyer under the RERA Act is crucial to ensure a smooth and transparent transaction. It safeguards your investment and helps you take action if the developer fails to meet their commitments. By being aware of your rights and duties, you can protect yourself from unfair practices and enjoy a hassle-free homebuying experience.
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