5 Mistakes That Can Weaken Your Rights as a Homebuyer — Even Under RERA

Buying a home is a dream for many, but the journey towards homeownership in India is rarely simple. Between arranging financing, dealing with project delays, and decoding legal contracts, buyers often face numerous challenges.

To safeguard the interests of homebuyers, the Real Estate (Regulation and Development) Act (RERA) was introduced. Since its implementation, RERA has helped thousands of buyers get compensation, timely handovers, and legal redress against unfair developer practices.

But while RERA offers legal support, it is not a magic shield. If buyers overlook essential steps or make critical mistakes, even this law may not come to their aid. 

Here are 5 such situations where your own oversight may restrict RERA’s ability to help.

1. One-sided agreements that favour the developer

Many developers draft sale agreements that include clauses tilted heavily in their favour. These may include the right to cancel allotment without buyer consent or make project alterations unilaterally.

If such clauses are accepted without objection, legal support later becomes challenging, even under RERA. Buyers are expected to review agreements thoroughly and contest any biased terms before signing.

2. Booking through all-cash transactions

To save on stamp duty or for other reasons, some buyers opt to pay the booking amount in cash. While it may seem convenient at the time, this approach is risky.

In the event of a dispute or cancellation, there may be no documented proof of the transaction. Without proper receipts, even RERA may not be able to support your claim for a refund.

3. Not following the payment schedule

Defaulting on agreed payment timelines is 1 of the most common missteps by buyers. If a buyer misses instalments or delays payments, the developer cannot be held accountable for project delays arising from this.

Worse still, the buyer could incur penalties or interest charges, and the legal system may view the delay as their fault, not the builder’s.

Read More: UP-RERA Cracks Down on Incomplete Possessions: Developers Face 5% Penalty Risk.

4. Accepting revised possession dates without legal advice

When builders propose a new possession date, many buyers accept it without fully understanding the implications. Some even agree verbally or sign informal letters.

This weakens their case if they later wish to file a complaint regarding the delay. Unless the revised date is formally negotiated and documented with proper legal counsel, it may be seen as the buyer waiving their right to object.

5. Falling for schemes like pre-EMI or subvention plans

Pre-EMI and subvention schemes often promise no payment burdens during construction. While this sounds attractive, many of these arrangements are outside RERA’s purview.

In such schemes, the builder typically agrees to pay the interest until possession. But if they default or if possession gets delayed, RERA may not offer a resolution since these financial agreements are not always covered under its regulatory scope.

Conclusion

While RERA provides much-needed protection for homebuyers, it also assumes that the buyer has taken basic precautions. Documentation, legal awareness, and financial discipline are crucial. Avoiding these common pitfalls can ensure that when needed, RERA can truly work in your favour.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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