RERA Act. – Secure from Builder or Developers Cheating and Other Types of Frauds In Property


RERA Act., Before the implementation of RERA Act, there was exposure of exploitation with the interests of home buyers. The lifelong savings of the home buyers and investment on property would be a huge loss for them if cheated by developers/builders. Every builder follows his own tactics to get over with the money invested by the buyer by deceiving the buyer to fall in the pit hall of undesirable luck.

To cover up all the unfair tactics used by the builders/developers the Government introduced the RERA Act. (Real Estate Regulations and Development Act, in 2016). It was brought to accomplish and eradicate all the violations done by the builders or developers. This act sets certain norms and rules which must be followed by builders thereby enhancing the transparency between the builder and the buyer.




1. Calculation of Carpet Area is standardised

There was no uniform method used for calculation of carpet area by the builders, giving them the liberty to use its own method of calculation. The builders would inflate the carpet area which would result in the cost of the property to be shot up. RERA has not defined the method of calculation of the carpet area which must be clearly followed by the builders.

2. Buyer’s right against the false promises of the Builder

The buyer is entitled with the right to withdraw from the project and get full refund when there has been delay and irresponsiveness from the builder on the project to be delivered. The refund can also be along with an interest as a part of compensation.

3. Advance Payment

Under the RERA Act, the buyer cannot pay more than 10% of the cost of the property as an advance payment. The builder cannot demand more than the amount set down by the RERA Act.

4. Defect in property after possession.

If the buyer discovers any defect in the property after the possession from the builder then within a period of 5 years from the development, the occurrence of any such defect shall be rectified by the builder within 30 days and no extra cost must be taken from the buyer.

5. Delay in possession

The buyer is entitled with the entire refund and to withdraw the project along with interest if there has been an indefinite delay to hand over the possession by the builder.

If not, the buyer may continue with the project, whereas he shall be entitled with compensation along with an interest from the due date for the incompletion of the project and until the date when the project has been completed.

6. Defect in title after possession

The buyer can claim compensation anytime after the possession if he finds that there has been a defect in the title of the property and the builder must compensate the same to the buyer.

  1. When there has been a delay in handing over the possession.
  2. When there has been no delivery of the possession at all by the builder to the buyer.
  3. The delivery made is not as promised, which lacks the fancy promises as made by the builder.
  4. Builders often divert the funds which are collected by the buyer, hence fraudulently not handing over the property nor the money to the buyer.
  5. There has been no disclosure of the carpet area and mentioning wrong calculation of the carpet area to the buyer.


The best way to curtail any issue which you face by the builder is to approach a RERA Advocate / RERA Lawyer, as they make you aware about the norms and rules which are set under the RERA Act., giving you the right to steps action against the swindling actions of the builder. RERA Advocates are well versed in dealing with builders thereby helping you resolve your issue so that you are compensated and delivered with what you paid for.

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