HOME BUYERS RIGHTS

Homebuyer Rights in RERA

1. Transparent Project Information
2. Adherence to Project Timeline
3. Promised quality in construction materials and workmanship
4. Changes in Project Plans
5. Title of Property
6. Right to Claim Refund
7. Formation of Resident Welfare Associations (RWAs)
8. Rectification of Deficiencies
9. Transparent Pricing
10. Redressal Mechanism

Right to Consent for Changes in RERA

Imagine you’re getting a custom-made suit. You’ve given the tailor specific instructions about the fabric, color, and style. Would you be happy if the tailor decided to make major changes without asking you first? Probably not!

The “Right to Consent for Changes” is similar. It protects you from unexpected and unwanted changes to your future home.

Here’s the idea:

• Sanctioned plan: Before construction begins, the builder has to get their plans approved by the authorities. This includes things like the layout of the building, the size of your apartment, and the common areas.
• Your consent matters: If the builder wants to make any significant changes to this approved plan, they can’t just do it on their own. They need to get your consent, and often the consent of other buyers in the project too.
• What kind of changes? This could include things like:
  • Reducing the size of your apartment or balcony.
  • Changing the location of parking spaces or amenities.
  • Adding extra floors to the building.
  • Making major changes to the building’s design.
• Why is this important? This right ensures that you get the home you were promised and prevents the builder from making changes that might negatively affect you.

Think of RERA as your protector against unwanted surprises. It gives you a say in any major changes to your future home, ensuring that you’re not left with something completely different from what you agreed to buy.

Right to Essential Documents in RERA

Imagine you buy a used car. You wouldn’t just drive it away without getting the necessary paperwork, right? You’d want the registration papers, insurance documents, and service history to make sure everything is in order.

Similarly, the “Right to Essential Documents” as Rights of Homebuyer in RERA ensures that you get all the important paperwork related to your property. This protects you from potential legal issues and disputes in the future.

Here are some of the documents you’re entitled to:

• Agreement for sale: This is the main document that outlines the terms and conditions of your purchase, including the price, payment schedule, and possession date.
• Approved plans: You have the right to see the approved building plans and layout to ensure your apartment is built as promised.
• Completion certificate: This document certifies that the building has been constructed according to the approved plans and is ready for occupancy.
• Occupancy certificate: This is issued by the local authorities and allows you to legally move into your new home.
• Title deed: This document proves your ownership of the property.

Why is this important?

• Proof of ownership: These documents establish your legal rights over the property.
• Transparency: Having access to these documents ensures transparency and prevents the builder from hiding any crucial information.
• Future transactions: You’ll need these documents if you ever decide to sell or rent out your property.
• Legal disputes: In case of any disputes, these documents serve as evidence and protect your interests.

Think of RERA as your document keeper. It ensures that you get all the necessary paperwork related to your property, giving you peace of mind and protecting you from potential legal hassles in the future.

Protection from Increased Charges in RERA

Imagine you go to a restaurant and order a dish from the menu with a clearly marked price. But when the bill arrives, you find they’ve added extra charges for things like “using the plates” or “breathing the air.” Sounds unfair, right?

The “Protection from Increased Charges” as a Rights of Homebuyer in RERA prevents builders from pulling similar tricks on homebuyers. It ensures you don’t get hit with unexpected price hikes after you’ve booked your property.

Here’s how it works:

• Agreed price: When you buy a property, the builder has to specify the total price upfront, including all taxes and charges. This is usually mentioned in your agreement.
• No hidden extras: RERA prohibits builders from adding any hidden charges or increasing the price later on, except in a few specific situations.
• Limited exceptions: The builder can only increase the price if:
  • There’s a change in government taxes or levies.
  • You request changes to the plan that increase the cost of construction.
  • There’s a genuine escalation clause in the agreement that allows for price adjustments under specific circumstances.
• Transparency: Even in these exceptional cases, the builder has to be transparent about the reasons for the price increase and provide proper justification.

Think of RERA as your price protector. It ensures that the price you agree on at the beginning is the price you pay in the end, preventing builders from taking advantage of you with unfair price hikes.

Right to Stop Payments in RERA

Imagine you’re paying for a service in installments, like a gym membership. If the gym suddenly closes down or stops providing the promised services, you wouldn’t want to continue paying, right? You’d want to stop your payments.

The “Right to Stop Payments” in RERA gives homebuyers a similar power. If the builder isn’t fulfilling their obligations, you can hit the pause button on your payments.

Here’s when you might be able to stop payments:

• Construction delays: If the builder is significantly behind schedule and not meeting the agreed-upon deadlines, you might have the right to stop further payments until they get back on track.
• Deviations from the plan: If the builder makes major changes to the approved plan without your consent, like reducing the size of your apartment or removing promised amenities, you might be able to withhold payments.
• Breach of contract: If the builder violates any other terms of the agreement, such as using substandard materials or failing to provide necessary documents, you might have grounds to stop payments.

Important points:

• Not a free pass: This doesn’t mean you can simply stop payments whenever you want. You need to have valid reasons and follow the proper procedure.
• Communicate with the builder: It’s usually best to first communicate your concerns to the builder and give them a chance to rectify the situation.
• RERA’s role: If the builder fails to address your concerns, you can approach the RERA authority for help. They can investigate the matter and decide whether you have the right to stop payments.

Think of RERA as a safeguard for your investment. It gives you the power to stop payments if the builder isn’t holding up their end of the deal, preventing you from throwing good money after bad.

Guarantee for Defects in RERA

Imagine you buy a new refrigerator, and after a few months, it starts leaking water or making strange noises. A good warranty would ensure the company fixes these problems, right?

The “Guarantee for Defects” works like a warranty for your new home. It protects you from construction defects and ensures the builder takes responsibility for fixing them.

Here’s how it works:

• Defect liability period: RERA requires builders to provide a guarantee for a certain period (usually five years) after you take possession of your home. This is like a warranty period.
• What’s covered? This guarantee covers major and minor construction defects, such as:
  • Cracks in walls or ceilings
  • Leaky pipes or plumbing issues
  • Electrical faults
  • Faulty windows or doors
  • Issues with the flooring or tiling
• Builder’s responsibility: If you discover any defects within this period, you can notify the builder, and they are legally obligated to repair them free of charge.
• Timely action: The builder has to address these defects within a reasonable time frame, usually 30 days.

Think of RERA as your home’s quality assurance. It ensures that you don’t have to bear the burden of fixing major construction flaws and that the builder delivers a home that’s safe and livable.

This “Guarantee for Defects” gives you peace of mind knowing that you have legal recourse if any problems arise with your new home after you move in.

Case Laws Upholding Homebuyer Rights

Several landmark judgments have further strengthened the position of Rights of Homebuyer in RERA. Here are a few notable cases:

• Homebuyers as Financial Creditors: In a significant ruling, the Supreme Court upheld the status of homebuyers as financial creditors under the Insolvency and Bankruptcy Code (IBC). This means that in case of insolvency of a developer, homebuyers have priority in claiming their dues. This directly relates to the right to a refund, ensuring that homebuyers are protected even if the developer faces financial difficulties.
• RERA and Consumer Protection Act: The Supreme Court clarified that homebuyers can approach both RERA and consumer forums for redressal, even if there is an arbitration clause in the agreement. This provides multiple avenues for seeking justice and reinforces the commitment to protecting homebuyer rights.
• Agreements Cannot Override RERA: Courts have consistently held that any clause in an agreement that contradicts RERA provisions is void. This ensures that developers cannot circumvent the law by including unfair clauses in their agreements.

Redressal Mechanisms for Homebuyers

RERA provides a robust mechanism for dispute resolution. Homebuyers can approach the following authorities:

• Real Estate Regulatory Authority (RERA): Each state has its own RERA authority where buyers can file complaints against developers.
• Consumer Forums: Homebuyers can also seek redressal through consumer forums under the Consumer Protection Act.
• Appellate Tribunal: If a buyer is not satisfied with the RERA authority’s decision, they can appeal to the Appellate Tribunal.
• Dispute Resolution Mechanism: RERA establishes fast-track dispute resolution mechanisms through Real Estate Regulatory Authority eastablished in each State.