How RERA has changed lives of allottees post implementation

RERA & Homebuyer Protection

Promulgated on 01 May 2017, RERA has provided the homebuyers with a dedicated form for the redressal of their grievances. Be it violations and transgressions of the builder buyer agreement, delay in the delivery of the unit or illegal cancellation by the builder, RERA Authority is keen to redress the homebuyer issues.

Under Section 31 of the RERA Act, 2016, any aggrieved person can file a complaint against the promoter (developer) for any violation or contravention of the Act’s provisions before the Authority or the Adjudicating Officer.

At Lex Horizon, we offer expert legal solutions tailored to protect the rights and interests of homebuyers under RERA.

Common Grievances Faced by Homebuyers

Delay in possession or handover of the property.
Violation of terms in the builder-buyer agreement.
Illegal or unilateral cancellation of allotment.
Non-refund of booking amounts or advance payments.
Misrepresentation of project details or approvals.
Poor construction quality or deviation from approved plans.
Hidden charges or unfair demand of additional payments.
Failure to obtain occupancy/completion certificates

Where can the Homebuyer approach

The location of the real estate project determines the jurisdiction under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA). For instance, if the homebuyer’s project falls within the jurisdiction of Gurugram District, they must approach RERA Gurugram. A complaint under Section 31 of the Act must be filed in the prescribed format and manner as specified by the respective RERA authority.

Jurisdiction of RERA for complaint. Project location determines jurisdiction

Can "real estate agents" be sued under RERA

Yes, "real estate agents" can be sued under RERA provisions. The Act allows any aggrieved person to file complaint against the promoter (developer), real estate agent, and also the allottee.

Grounds: The Agent can be sued under Section 31 of the Act for misrepresentation, unfair practices, or failure to comply with RERA provisions.

Section 2 (zm) of the Act defines "real estate agent" to be any person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot, apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as a commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called;

Is it mandatory for the Real Estate Agent to register under the Act.

Yes. It is mandatory for the agent to register under the Act for facilitating sale & purchase of any plot, apartment or unit, in a real estate project which is registered under the Act.

Functions & Duties of the Real Estate Agents

Not to deal in the projects not registered with the authority
To maintain and preserve such books of account, records and documents as may be prescribed.
To not involve himself in any unfair trade practices, involving making false representations regarding quality of services, affiliation or registration of the project, misleading representation to induce the buyers
To enable possession of all the information and documents to the allottee at the time of booking of any plot, apartment or building

Know Your Rights

An allottee within the Real Estate (Regulation and Development) Act, 2016 is entitled to: -

Protection of interest within the Real Estate sector
Transparent and efficient provision of information related to project
Speedy adjudication of dispute and redressal of grievances
At the time of booking, information such as layout plans, sanctioned plans, as approved by the authority
At the time of booking, stage wise schedule of completion of the project
Execution of agreement for sale, before payment of more than 10% of the cost of apartment, plot or unit. The agreement for sale shall be in prescribed format.
Copy of completion or occupation certificate, as the case maybe, upon offer of possession
Execution of registered conveyance deed
Timely delivery of the apartment, unit, plot, building etc.
Return of money and compensation in case the promoter fails to deliver the unit within the promised time, or in accordance with the terms of the agreement for sale.
In case the allottee decides to continue with the project, payment of prescribed rate of interest

Do unregistered projects fall within RERA?

In CWP-24591-2024, titled "M/s. Ramprastha Developers Private Limited and Others vs. State of Haryana and Others", a similar issue came up for consideration. The Court concluded that, for an aggrieved homebuyer or allottee, the remedy provided under the Real Estate (Regulation and Development) Act, 2016 (RERA) remains available, even if the project promoted by the real estate agent or promoter is not registered under Section 3 of the Act.

A similar view was taken in Anil Kumar Yadav and Others vs. State of Punjab and Others (20.03.2025 - PHHC) CWP-4769-2020 (O&M)

The courts have recognized that the term "allottee" includes not only current homebuyers in ongoing projects but also prospective allottees who have invested or paid money for projects that will be developed in the future.

Even if the project is not yet registered with RERA or has not commenced, a prospective allottee (someone who has paid for a future project) has the right to file complaints against promoters under RERA for any wrongful acts

Promoters must adhere to RERA’s standards and obligations not just for current projects but also for upcoming ones, ensuring transparency and protection for future buyers.

Future allottees enjoy the same statutory rights under RERA as current allottee.

What about "allottees" who have invested in "future" or "prospective" projects?

Most RERA Authorities in India award interest equivalent to State Bank of India’s highest Marginal Cost of Lending Rate (MCLR) + 2% for the entire period of delay. This is applicable for delay in possession and refund cases both, and is for the entire period of delay.

For example, if SBI‑MCLR is presumed to be 8.70%, the interest payable by the promoter to the allottee would be 8.70% + 2% = 10.70% p.a. towards delay in possession or the delayed period.

To check latest SBI MCLR rates, click here.

What is the rate of interest awarded to the allottee?

When buying a flat, plot, or building, many people are asked to pay booking amounts or advances even before signing any papers. Section 13 of the RERA Act protects homebuyers from this practice.

What Does the Law Say?

A promoter cannot take more than 10% of the property cost (apartment/plot/building) as advance or application fee without first signing and registering an Agreement for Sale.
If you are paying more than 10%, there must be a registered Agreement for Sale in place.

No Advance Without a Sale Agreement – What Homebuyers Must Know

What This Means for You?

You can pay a booking amount, but it must not exceed 10% of the total cost unless there is a registered agreement.
Builders must prepare a written, registered Agreement for Sale for larger payments, ensuring legal protection for both parties.

RERA and Fair Agreements – No More One-Sided Contracts

Before RERA, many builders used to prepare one-sided agreements, leaving buyers with little protection or bargaining power. The RERA Act has put an end to this practice by ensuring fairness and transparency in builder-buyer agreements, prescribing a draft agreement, which builder needs to conform.

The Agreement for Sale must be in a prescribed format, as specified by the respective State RERA Rules.

It should clearly mention:
- Payment schedules (how and when you need to pay).
- Possession date and penalties for delays.
- Specifications of the property – size, carpet area, super area, amenities, etc.
- Obligations of both the promoter and the buyer.
- Any other details required by the law.

What This Means for You?

A promoter cannot force a buyer to sign an unfair or unilaterally drafted agreement.
Every builder-buyer agreement must conform to this standard format
If a builder uses an agreement that does not comply with the RERA-prescribed format, it is considered a violation of the RERA Act.
Buyers can file a complaint with the respective State RERA Authority for corrective action.

Our Services

Complaint filing before Authority

File your complaint before the RERA Authority for:

Possession and Compensation: Delay in possession of your unit and claim for compensation.
Refund with Interest: Refund of the amount paid along with the prescribed interest for the delayed period.
Misrepresentation & Unfair Practices: Actions or misrepresentations by the promoter or agent that are unfair or misleading.
Violation of Sanctioned Plans: Non-compliance with the approved or sanctioned plans.
Breach of Promises: Failure to honor commitments made in the allotment letter, builder-buyer agreement, or any other representations.

Protection against builder misconduct, illegal action and unfair practices

In cases where the builder is threatening you with:

Illegal or coercive actions, and other unfair practices; or
Charging or demanding illegal payments, exorbitant interest; or
Threatening to cancel your allotment; or
Forcing you to sign unfair or one-sided agreements,

Immediately safeguard your rights by approaching the RERA Authority and filing a complaint.

File Appeal against the order of the RERA Authority

If you are aggrieved by an order, decision, or direction issued by the RERA Authority or the Adjudicating Officer, you have the right to file an appeal before the RERA Appellate Tribunal under Section 44 of the RERA Act, 2016.

Key Points:

Limitation Period:
- An appeal must be filed within 60 days from the date of receipt of the order or decision of the RERA Authority or Adjudicating Officer.
- The Tribunal may allow an appeal to be filed beyond 60 days if sufficient cause for the delay is shown, but such condonation is subject to the Tribunal’s discretion.
Grounds for Appeal:
- Erroneous findings or incorrect interpretation of facts/law.
- Failure to consider material evidence or submissions.
- Any order that is contrary to the provisions of the Act or rules.