RERA Explained — What Are Your Rights as a Home Buyer in India?
Buying a home is one of the most significant investments of your life. It involves years of savings, careful planning and a great deal of trust, trust that the builder will deliver what was promised, on time and as agreed.
But what happens when the builder delays possession? What happens when the flat you receive is nothing like what was promised in the brochure? What happens when a project is cancelled entirely and you are left without your money or your home?
This is exactly why the Real Estate Regulatory Authority commonly known as RERA was created.
And as a home buyer in India, RERA is one of the most powerful legal tools you have.
What is RERA?
The Real Estate (Regulation and Development) Act 2016 commonly known as RERA is a landmark legislation passed by the Parliament of India to regulate the real estate sector and protect the interests of home buyers.
Before RERA the real estate sector in India was largely unregulated. Builders could delay projects indefinitely, change project plans without consent, collect money without accountability and leave buyers with little to no legal recourse.
RERA changed all of that.
It came into effect on 1st May 2017 and applies to all residential and commercial real estate projects across India. Every state and union territory has its own RERA authority for example Punjab RERA, Haryana RERA and the UT RERA for Chandigarh.
Who Does RERA Apply To?
RERA applies to —
All residential and commercial projects where the land area exceeds 500 square metres or where the number of apartments exceeds 8 units.
All builders, developers and promoters who sell, market or advertise real estate projects must register their projects with the respective state RERA authority before launching or advertising them.
All real estate agents who facilitate the purchase or sale of property must also be registered under RERA.
If a project is not registered under RERA the builder cannot legally advertise or sell it. This is one of the most important protections RERA provides to buyers.
Your Key Rights as a Home Buyer Under RERA
Right to Accurate Information
Under RERA, every registered project must have a dedicated page on the state RERA website with complete and accurate information including —
The sanctioned plan and layout of the project. The total number of units. The amenities promised. The timeline for completion. The status of approvals and permissions.
As a buyer, you have the right to access all of this information before making any payment.
Right to Receive What Was Promised
One of the most common complaints from home buyers is that the flat they receive is different from what was shown in the brochure or sample flat.
Under RERA builders cannot make any changes to the sanctioned plan or project specifications without the written consent of at least two thirds of the allottees. Minor changes that affect the structure, layout or amenities are prohibited without buyer consent.
This means that what you were promised at the time of booking is what you are legally entitled to receive.
Right to Compensation for Delayed Possession
This is perhaps the most important right under RERA.
If a builder fails to deliver possession of your flat by the date mentioned in the agreement you are entitled to compensation.
Under Section 18 of RERA if the builder fails to complete the project on time the buyer has two options:
Option 1 — Withdraw from the project entirely and receive a full refund of all amounts paid along with interest at the prescribed rate.
Option 2 — Continue with the project and receive monthly interest from the builder for every month of delay until possession is handed over.
Real Example — In a landmark case before the Punjab RERA a builder delayed possession of flats in Mohali by over 3 years. The RERA authority directed the builder to pay interest to all affected buyers for the entire period of delay. The buyers received compensation without having to go through lengthy court proceedings.
Right to After Sales Service and Defect Liability
Even after you receive possession of your flat RERA protects you.
Under Section 14(3) of RERA if any structural defect, defect in workmanship, quality of materials or provision of services is brought to the builder’s notice within 5 years of possession the builder is obligated to rectify it within 30 days at no extra cost to the buyer.
This means that even after you move in, the builder cannot simply walk away from their responsibility.
Right to a Dedicated Escrow Account
One of the biggest reasons for project delays in India was that builders would collect money from buyers for one project and divert it to fund other projects or personal expenses.
RERA has addressed this directly.
Under RERA builders must deposit 70% of all amounts collected from buyers into a dedicated escrow account that can only be used for construction and land costs of that specific project.
This ensures that your money is protected and used only for the project you have invested in.
How to File a RERA Complaint
If a builder has violated your rights under RERA here is how you can seek justice —
Step 1 — Visit your state RERA website. For Chandigarh and Punjab buyers visit the Punjab RERA website at hrera.org.in or the UT RERA portal.
Step 2 — Register as a complainant and fill in the complaint form with all relevant details including your agreement, payment receipts and correspondence with the builder.
Step 3 — Pay the prescribed complaint filing fee which is nominal and designed to be accessible.
Step 4 — The RERA authority will issue a notice to the builder and schedule hearings. RERA complaints are typically resolved much faster than regular court cases within 60 days in most cases.
Step 5 — If you are not satisfied with the RERA authority’s order you can appeal to the RERA Appellate Tribunal and further to the High Court.
Common Mistakes Home Buyers Make
Many home buyers unknowingly give up their legal rights because of common mistakes —
Not checking RERA registration before booking always verifies that the project is registered on the state RERA portal before making any payment.
Not reading the agreement carefully — the builder’s agreement often contains clauses that are unfair to buyers. Always have a lawyer review your agreement before signing.
Missing complaint deadlines — RERA complaints must be filed within a reasonable time. Do not delay if you have a genuine grievance.
Accepting verbal promises — everything the builder promises must be in writing and part of the registered agreement. Verbal promises have no legal value under RERA.
Why You Need a Lawyer for RERA Matters
While RERA is designed to be accessible, having an experienced legal team by your side significantly improves your chances of a favourable outcome.
At Nex Legalis Law Firm, our team has extensive experience in handling RERA matters across Chandigarh, Ludhiana and Jalandhar. We have helped home buyers.
Recover full refunds with interest from defaulting builders. Obtain compensation orders for delayed possession. Challenge unfair builder agreements. Navigate RERA proceedings efficiently and effectively.
Your home is your dream. Your legal rights are your shield. And we are here to help you protect both.
Final Thought
RERA was created with one purpose to make the real estate sector fair, transparent and accountable.
As a home buyer you are not powerless. You have rights. You have legal remedies. And you have access to a regulatory authority specifically created to protect your interests.
Do not let a builder’s delay or dishonesty go unchallenged.
Know your rights. Use the law. And if you need guidance, reach out to a legal professional who understands RERA inside out.