Under Section 13 of RERA, a promoter cannot accept more than 10% of the cost of an apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale with the buyer and registering that agreement. This provision ensures buyers have a formal agreement setting out development work, payment schedule and possession date details before paying a substantial portion of the property's cost.
According to Section 18 of RERA, if a promoter fails to complete a project or provide possession as per the agreement for sale, buyers have multiple options. When choosing to withdraw, the promoter is liable to return the amount received along with prescribed interest and applicable compensation. Alternatively, if the buyer decides to remain in the project, the promoter must pay interest for every month of delay until possession is handed over. This provision gives buyers flexibility when developers fail to meet agreed timelines.
Section 14 of RERA restricts promoters from making additions or alterations to individual apartments without allottee's prior consent, subject to permitted minor alterations. The law also regulates changes to sanctioned plans, layouts and specifications of buildings or common areas, which generally require prior written consent of at least two-thirds of allottees, excluding the promoter. This protection ensures developers cannot unilaterally modify properties after buyers have booked their homes.
Under Section 14(3) of RERA, buyers can seek rectification of structural defects or covered defects in workmanship, quality or services reported within five years from possession date. The promoter must rectify such defects without further charge within 30 days. If the promoter fails to do so, the allottee is entitled to appropriate compensation under the Act. This provision covers specified defects and promoter obligations under the agreement for sale, though not every maintenance issue automatically qualifies for relief.
The Real Estate (Regulation and Development) Act, 2016 provides a mechanism for filing complaints against violations. The protections available in individual cases depend on applicable statutory provisions, terms of the agreement and relevant state rules. According to the report, the Act also covers remedies when buyers suffer loss or damage based on false advertising, with provisions for withdrawal from projects and return of investments with prescribed interest and compensation under specific conditions.
