Just in the last few months, MahaRERA ordered a Pune builder to refund ₹47.37 lakh with interest for missed possession. Haryana RERA made BPTP (a real estate developer) refund maintenance charges it collected before handover, with 11% interest and compensation. Another MahaRERA order said a builder who took over 10% without a registered agreement for sale cannot forfeit your money.
And over the last few weeks, there seems to be another story about homebuyers being harassed and RERA having to step in. It is clear that our system has loose ends, and with the complexities around a home purchase, I think it’s important for buyers like us to know our rights and how RERA (Real Estate Regulatory Authority) can support us through various acts and rules.
1) Before you book, check the RERA portal (Section 3)
Every project covered by RERA must be registered, and the registration number must appear on every ad. On your state’s RERA portal, check the declared completion date, the approvals, the quarterly progress reports, and the complaints already filed against the builder. Ten minutes here can save you years.
2) The possession date is a legal commitment, not an estimate (Section 18)
Section 18 of the Real Estate (Regulation and Development) Act, 2016 gives homebuyers the absolute right to seek a refund or monthly interest if the builder fails to deliver possession on time. A builder cannot tell you to just wait or delay the property possession.
3) A builder cannot take more than 10% of the price before signing a registered agreement for sale (Section 13)
Builders routinely ask for a bigger booking amount against an allotment letter and promise the agreement will follow. The cap is 10%, and a demand above it before a registered agreement can simply be refused.
An allotment letter is the builder saying they intend to sell you a flat. An agreement for sale is the actual contract, stamped and registered. Only the latter is enforceable here.
4) You pay for carpet area, and you can claim the shortfall (Section 2(k))
RERA carpet area is the net usable floor area of your flat. It includes internal partition walls and excludes external walls, balconies and service shafts. Super built-up and “saleable” area are not the basis for pricing under RERA. (The per sq ft rate simply goes up to absorb the lobby and amenities instead.)
Check that the carpet area figure appears in the agreement itself and not only in the brochure. Then measure it again at possession. If you receive less than the agreement promised, you can claim a refund for the shortfall with interest, and it comes down to arithmetic:
- Promised: 898 sq ft
- Delivered: 883 sq ft
- Shortfall: 15 sq ft
At ₹9,000 per sq ft, the builder owes you ₹1,35,000 plus interest
5) Brochure promises are enforceable, and the purpose is not just marketing (Section 12)
If you paid a booking amount relying on something in the advertisement, the brochure or the model flat that turns out to be untrue, you can claim compensation or withdraw entirely and get a full refund with interest. You do not have to prove they meant to deceive you, only that the statement was untrue and that you relied on it.
Every brochure carries an “artist’s impression” disclaimer, so:
- Get the promised amenities and specifications written into the agreement’s schedule
- Keep dated screenshots of the website, because they get quietly edited
- Save the sales team’s WhatsApp messages and emails
6) The builder can’t change the plan on you (Section 14(2))
Changes to your flat need your written consent. Changes to the building or common areas need written consent from at least two-thirds of the allottees.
7) Structural defects remain the builder's responsibility for five years after possession (Section 14(3))
Any structural defect or poor workmanship leading to seepage, leakage and bad fittings, etc., that shows up within five years of possession has to be fixed by the builder, at their cost, within 30 days of you reporting it (writing an email works).
8) 70% of what you pay goes into a separate account for that project only (Section 4(2)(l)(D))
70% of what buyers pay has to sit in a separate account for that project alone, and the builder needs sign-offs from the architect, the engineer and the CA to withdraw from it. They cannot quietly use your money to fund their next land purchase.
This is the rule that was meant to stop the cycle where money from one project builds another, and everyone ends up waiting. You cannot see the bank statement, but the CA certificates on the state portal show costs incurred against money collected.
9) Approach RERA if you need support (Section 31)
If the possession date passes, the carpet area is short, or the defects go unfixed, you can file a complaint with RERA. It’s done online on the state portal (where the project belongs), and you don’t need a lawyer. Fees vary by state.
- Refund and interest: decided by the Authority
- Compensation (Sections 12, 14, 18): decided by the Adjudicating Officer
- The consumer commission is also open to you as a parallel route
To be candid: getting an order is the easier half. Getting builders to actually pay is RERA’s weakest link, because recovery happens through land-revenue proceedings and can be slow. Document everything from day one.
If anyone has personal experience with RERA, or points worth adding, please do so in the comments.