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Remedy Under RERA If No Builder-Buyer Agreement Is Executed

The Real Estate (Regulation and Development) Act has played the role of a catalyst in the Real Estate sector of the economy. After the implementation of the Real Estate (Regulation and Development) Act, 2016 the aggrieved home-buyers now can file their grievances before the RERA Authority of the State. Since the introduction there have been numerous judgments where justice was given to the aggrieved home-buyers.

RERA Act, 2016 has made certain provisions which will protect homebuyers from delinquent builders/developers. For example, if the builder/developer has not delivered the possession of the flat within the stipulated time as per the terms and condition of Builder buyer agreement, the homebuyer can approach RERA and file complaint against the builder/developer under section 18 of the RERA Act and remedies like refund along with the interest; possession of the property along with the interest for the delayed period.
Although, the home-buyers are taking a sigh of relief the aforesaid provision of the RERA Act still has some unanswered question and one of the pertinent questions is what if there is no Builder-Buyer agreement executed between the Builder and buyer. This is a pivotal question as in the absence of Builder-Buyer Agreement, the builders/developers takes undue advantage of the aggrieved homebuyers. Also, the homebuyer is in lack of evidence when there is no Builder-Buyer Agreement executed between the parties.

There have been number of cases in RERA wherein the builder had taken the whole or partial amount of money but did not sign or execute any Builder-Buyer agreement so now the question arises if there is no Builder-Buyer Agreement then how there can be a breach of terms and conditions of the agreement for the delivery of the possession and in such cases how the home-buyers should pursue their complaints.

Filing complaint in RERA in the absence of Builder-Buyer agreement should be discussed keeping in view the rights of the homebuyers. The main purpose of enactment of RERA is to safeguard the interest of the home-buyers. Furthermore, any aggrieved person may file a complaint before the RERA Authority for any of the contraventions of the act, rules, and regulations under Section 31 of the act. The intent of the RERA Act is to redress the grievances of the homebuyers and protect their interests.

Thus, it is clear from the provisions of RERA laws that a person has to aggrieved to get the desired remedies written in the Act and to be an aggrieved person one does not need Builder-Buyer agreement; if the builder has taken the money and not giving the possession of the plot, apartment or building and there are other relevant documents (allotment letter, brochures any advertisement in the newspaper or any commitment via letter/ mail) to prove that the project is delayed or promised amenities/facilities  are not fulfilled then the complaint is maintainable in RERA and one can pursue the matter.

Another relief provided under section 13 of the RERA Act, is a builder/developer is prohibited to take more than ten percent of the cost of the apartment without the signing and registration of the Builder-Buyer agreement. In any of the case where a builder has taken the money above than the mentioned threshold then this is not a legal act and one can induce the builder to sign the builder-buyer agreement by filing a complaint before RERA Authority.


Divya Patwal


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