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Think RERA Has You Covered? Not If You Make These 6 Mistakes.

Real Estate (Regulation and Development) Act, 2016 (RERA).
Real Estate (Regulation and Development) Act, 2016 (RERA)

The Real Estate (Regulation and Development) Act, 2016 (RERA), was introduced to protect homebuyers from unethical practices and bring transparency to India’s real estate sector. While RERA provides significant safeguards, many buyers mistakenly assume it guarantees blanket protection — but this is far from the truth.


If you make certain legal or financial missteps, even RERA won't be able to come to your rescue. Avoiding these errors is crucial to protect your investment and ensure you can seek rightful compensation when needed.


Let’s look at six critical mistakes that could cost you your rights under RERA.

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1. Signing Agreements with Unilateral Clauses

Real estate contracts often include unilateral clauses that benefit the developer — such as rights to modify specifications or cancel allotments without your consent.

Unfortunately, once you sign these agreements, you’re bound by them. RERA authorities typically honor what’s been signed, even if the terms seem unfair in hindsight. So, always scrutinize every clause before signing and ensure your rights are clearly protected.

Tip: Avoid signing documents like NOCs or undertakings without understanding their long-term legal consequences.

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2️.Making All-Cash Payments at the Booking Stage

Some buyers opt for all-cash transactions to avoid stamp duty or other formalities. However, these transactions often have no legal recognition, leaving you without recourse if the deal falls through.

If a dispute arises or the booking is canceled, the lack of documented payment can severely weaken your case — both in RERA and other legal forums.

Tip: Always insist on proper receipts and registered agreements for every transaction, especially at the booking stage.

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3️.Defaulting on Payment Schedules

Missing payments isn’t just a financial issue — it can void your legal rights under RERA. If you fail to follow the agreed payment timeline, the developer may not be held accountable for project delays caused by your default.

Also, delaying possession after the occupancy certificate (OC) is issued may shift liability to you. Instead of receiving compensation for delays, you could end up paying maintenance and holding charges.

Tip: Choose a payment plan that aligns with your cash flow and avoid overcommitting.

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4️.Accepting Revised Possession Timelines Without Legal Consultation

Developers may request buyers to agree to extended possession dates. If you accept revised timelines—formally or even through informal communication—it may be considered a waiver of your right to claim compensation for delay.

Even a simple email or message acknowledging the change could be used against you in legal proceedings.

Tip: Never agree to changes in project timelines without consulting a legal expert.

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5️. Delaying Filing Complaints Against Developers

Although RERA does not specify a strict limitation period, delay in filing complaints can lead to dismissal on the grounds of being time-barred. Courts expect buyers to raise issues within a "reasonable timeframe" after the problem occurs.

Moreover, issues like construction defects must be reported within five years from possession to be eligible for redress under Section 14(3) of RERA.

Tip: Document every issue and file complaints promptly to preserve your legal rights.

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6️. Relying on Pre-EMI, Subvention, or Rental Return Schemes

Marketing schemes like pre-EMI plans, subvention offers, or rental return promises may seem attractive, but they’re often not covered by RERA.

Since these are private contractual arrangements, RERA is unlikely to intervene if a developer defaults on such promises. If you face losses due to such schemes, your only option may be to seek remedy through consumer or civil courts.

Tip: Stick to builder-buyer agreements that are recognized under RERA, and be cautious of promotional schemes not documented in the official contract.

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Conclusion: 

RERA has revolutionized real estate regulation in India, but it's not a substitute for due diligence. Homebuyers must be cautious, well-informed, and proactive to fully benefit from its protections. By avoiding these six critical mistakes, you can ensure that RERA remains your shield — not just a missed opportunity.


Disclaimer: The information provided here is for general informational purposes only and should not be construed as legal advice.  



 
 
 

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