The Real Estate (Regulation and Development) Act 2016 (RERA) was put in place, to impose a sense of discipline in the Real Estate sector. By offering homebuyers a coherent redressal system, RERA ensures that builders are held accountable for all their promises and offers. But what is commonly overlooked by homebuyers is that the function of the Act is to protect the rights of the promoter (builder) too. So RERA draws a fine balance between both party's rights as well as their duties. Just as the rights of a homebuyer is protected against fraud, malpractice and other unscrupulous practices, the builders are also guarded against investors and homebuyers who default on customary payments and maintenance dues.

Section 20 of the Act lists out all the rights and duties of the allottee (homebuyer), even detailing how they would be penalized, should they abscond from their duties. As it turns out, many people embarking on a homebuying journey are not aware of this provision in the Act. To avoid being on the wrong side of the law, take a look at what the Act spells out for homebuyers to make sure, all duties are followed through.

1. RESPONSIBLE TO MAKE TIMELY PAYMENTS

The Act states that every homebuyer who has entered an agreement for sale, to buy an apartment, plot or even a building, is responsible to make the necessary payments in the manner and within the time frame that was previously agreed upon. The homebuyer is liable to pay their share of registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other applicable charges at the proper time.

2. INTEREST TO BE LEVIED AFTER DELAY IN PAYMENTS

When homebuyers fail to make payments at the prescribed time or delay instalments towards any amount or charges, they are liable to pay interest at a previously decided upon rate which may cumulatively extend up to 5% of the cost of their purchased property.

3. PARTICIPATION IN FORMING AN ASSOCIATION IS MANDATORY

Anybody buying a flat, a plot of land or even full building is instructed to take part in the formation of either an association, a co-operative society, or a federation, along with other homebuyers.

4. NO DELAY IN CLAIMING POSSESSION AFTER OC HAS BEEN ISSUED

The Act states that once the Occupational Certificate has been issued to the builder, the homebuyer has to physical possession of their apartment, plot or building within a strict time frame of two months, and no later than that.

5. MUST REGISTER A CONVEYANCE DEED

Every homebuyer is directed to participate in the registration of the conveyance deed of the apartment, plot or building they have bought.

These are all the duties every homebuyer is expected to carry out, during the process of buying and owning a home. If any of the duties are not performed to completion, the regulatory body can penalize them in any way they deem fit. A homebuyer can end up paying up to 10% of the cost of their property purchase, and even be faced with imprisonment if they fail to comply with the orders made by the Appellate Tribunal. Even if the offence is compounded (coming to an agreement or a settlement) the homebuyer would be liable to pay a hefty fine.