For most of us, buying a home is a lifetime achievement. It is indeed an exciting phase
when you start looking for a dream home. Although your primary focus will be on the
factors of comfort and convenience, you may not pay much attention to the legal
challenges of home buying.
Some laws have been introduced by the government to protect the interests of
consumers and allow transparency in real-estate transactions. A homebuyer also
termed as an allottee is a person who acquires the plot or apartment through transfer
or sale but does not include a person to whom such apartment/plot is given on rent. If
you have a clear idea about your legal rights as a home buyer, you can avoid problems
related to pricing and service delivery.
So, as a homebuyer, if you are looking to buy a new home, learn about your rights.
Right to be informed
Before buying home allottee has the privilege of receiving information from the
concerned authority on legal sanctions, construction layouts, specifications, and other
A homebuyer is eligible to know, in compliance with the terms and conditions of the
sale agreement, details of the phase-wise completion of the project, including
provisions for water, electricity sanitation & other amenities, and services as negotiated
between the promoter and the owner.
Right for inspection
As a home buyer, prior to making the purchase, you have the right to inspect a
property and ensure quality. In order to monitor the project’s progress, the allottee has
the right to visit the project site.
The buyer of a home is entitled to claim ownership of an apartment, land, or building.
The association of house owners shall be entitled to claim the common areas of
Right to refund
If the property promoter fails to hand over the apartment, plot, or building, the allottee
has the right to withdraw from the project and seek a refund, interest, and
compensation. The National Consumer Disputes Redressal Commission (NCDRC) has
held that if possession is delayed beyond one year from the date promised by the
builder, buyers can demand a refund. According to the NCDRC, if projects are not
completed within the specified deadline, the contractor will repay the entire sum with
an interest rate of 10%.
Homebuyer owns the right to have the necessary plans and documents including that
of common areas, after handing over the physical possession of the unit.
Delays of Project
If a project is delayed and if the allottee does not plan to withdraw from the project,
then for every month of delay, the developer will be responsible for paying the allottee
monthly interest on bank loans as per the agreement. For under-construction projects,
Alterations in structure
A buyer may file a lawsuit against a developer if, without the permission of at least
2/3rd of the allottees, other than the promoter, who have agreed to purchase an
apartment in a building, they make any significant structural changes in the approved
plans, layout, fittings and amenities.
Benefits of hike in value
The buyer will reap the advantage of any change or rise in the value of the property
and the rentals and income from the property after acquiring possession of the
property from the seller. After the sale, the purchaser can have no claim on the
If a buyer discovers some structural or flaw in workmanship within 5 years of the
handing over of the ownership, without any further fee, the property seller will be
responsible for repairing it. The allottee shall be entitled to collect compensation if the
promoter fails to rectify the same within 30 days.
Registered conveyance deed
In respect of the allottee, the purchaser is responsible for performing a registered
conveyance deed. The signing of the deed implies transferring the title of the property
from the seller to the buyer. The seller is required to certify that the apartment is free
of any legal obligations. The buyer holds the legal rights of the property until the
registration of the conveyance deed is done.
Before purchasing a house, know your rights. For any questions and further
information, please comment.