Buying a home in India can be challenging. From home loans to house registration, homebuyers often face many issues. Builders sometimes cancel allotments, delay projects, or fail to fulfill promises.
To protect buyers, the government introduced RERA (Real Estate Regulation and Development Act) in 2016.
While RERA helps settle complaints, there are some situations where it cannot help, especially if you make certain mistakes. Here are six key mistakes to avoid:
1. Signing One-Sided Agreements
Builders often include clauses in the agreement that favor them, such as allowing them to cancel allotments or change the project design.
Signing such agreements without reading them carefully can harm you legally. RERA can recognize these documents, and you may lose your legal rights.
2. Paying in Cash at the Time of Booking
Some buyers pay in cash to avoid paying stamp duty, but these transactions are not legally recognized.
If you pay in cash, RERA won’t accept it, and your position as a buyer could be weakened, especially when asking for refunds.
3. Not Paying Installments on Time
If you don’t make timely payments, the builder isn’t responsible for project delays. According to the court, buyers who delay payments aren’t entitled to compensation.
Make sure the payment schedule fits your budget before signing the agreement.
4. Accepting Revised Possession Dates Without Thought
Builders may offer a new possession date, either verbally or in writing.
Accepting this date without legal advice can weaken your case, as it may be seen as your acceptance of the delay. Always seek legal guidance before agreeing to any new date.
5. Delaying Your Complaint
While there’s no fixed time limit for filing complaints with RERA, delaying your complaint can lead to rejection. If the builder isn’t fulfilling promises, file your complaint immediately to avoid problems.
6. Relying on Pre-EMI or Rental Return Promises
Some builders promise pre-EMI or rental returns. However, RERA does not legally recognize these promises, as they are private agreements.
If the builder refuses to honor them, RERA won’t help. Be cautious and don’t rely solely on these promises.
