Why was RERA introduced? What are the rights of buyers under RERA?


Every person has a dream to own a house and to fulfil their dream they spend their lifetime earnings and savings. However, the builders had unclear policy about the property which is to be sold to a common man, and they used their strategy to fool the buyers. They were encouraged because there was no clear legislation to govern this real estate sector. Thereafter in the year 2010 the real estate industry faced a major drawback as the builders declared them insolvent and the people who invested their money to purchase a property lost their all sweat and blood. Since then there were bundles of cases filed in the court by innocent buyers to protect their interest even there were various cases in which the buyers didn’t paid the amount to builders and the builders became bankrupt. Therefore, to protect the interest of buyer and seller the parliament passed the Real Estate (Regulation and development) Act, 2016.

The two main reasons behind enacting this legislation are: –

1. To have a transparency in the project by making both the sides i.e. the buyer and the builder accountable to each other.

2. To provide security to innocent buyers against the malafide builders.

Problems faced by buyers before RERA

The buyers used to face many problems before the enactment of RERA. Some are:

1. The buyers had no right to information.

2. They had no right to claim for compensation when they did not get the property as per the agreement.

3. The buyers did not had right to ask for the documents of the property.

4. The buyers had no right to ask for refund from the builder in any case.

There were many more ways in which buyers were deprived of their rights. This was the main reason behind enactment of RERA.

Rights under section 19, RERA

Section 19 of RERA states the rights and liabilities of allottees. Allottees refers to buyer of a land or a house. The Act was enacted for the betterment of buyers and for securing several rights for them. The rights mentioned under above mentioned section are as follows:

Section 19(1)- This sub section states the rights of allottees or buyers related to information of the property they are purchasing. The buyers are entitled to know everything about the sanctioned and layout plans of the properties. Also, the information contained in the agreement made with the promoter.

Section 19(2)- The allottees have the right to know everything relating to the project. The stage wise information including the provisions for water, sanitation, electricity. Also, the information regarding other amenities that are contained in the agreement.

Section 19(3)- The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter

Section 19(4)- the allottees have the right to ask for refund and compensation from the promoter when the buyer did not find the amenities in the property as per the agreement. The promoter is bound to pay back the amount or to compensate the allottee in a way mentioned in the Act.

Section 19(5)- The allottees have the right over possession of the papers of the property after getting the physical possession of the property.

Section 19(6)-19(11) states the liabilities of the buyers.

Other Rights

There are many other rights provided to buyers under RERA

  • False promises– If there is any contradiction in the promises made by the builder and the property delivered, then the buyer has the right to step away from the project along with compensation. 
  • Defect after possession– Any structural defect in the construction revealed within 5 years after the possession of the building will be repaired by the builder within a maximum of 30 days without cost and the buyer has the right to ask for compensation for the same. The amount of rectification has to be paid by the builder.
  • Delay in possession– If the builder fails to complete the project on the due date of completion then the buyer has the right to withdraw from the project with the full refund from the buyer along with the compensation. The buyers also have an option to continue with the project where he is entitled to the compensation of the delay in handing over the project.
  • Defect in the title– In such a case, the buyer can claim compensation from the builder. The concept of a defect in the title is not barred by limitation.


The enactment of RERA brought transparency, legality in the contracts and agreements between buyers and sellers. The Act also introduced some of the liabilities of the buyers due to which the buyers are also duty bound to the sellers. Both the sellers and buyers have some obligations towards each other due to which the transparency arises.

Edited by Pushpamrita Roy

Approved & Published – Sakshi Raje 

Sejal Makkad
I am Sejal Makkad, a student of Amity Law School, Amity University Chhattisgarh, pursuing BA LLB(H), currently in Semester VI. Apart from the daily routine of assignments and tests in college, I indulge myself in writing research papers. I look forward for conferences in different colleges to be a part of them. The research which I do in various topics increases my knowledge in such subjects which are not in the syllabus. This is a bonus point of writing articles and papers. Apart from the academics, I love to sketch and paint in my free time. I am also a cynophilist. I am interested in criminals laws, human rights mostly. The most favourite task for is to eat whole day because food is what makes me the happiest.