Rights and Duties of Allottee under Section 19 RERA

The Real Estate (Regulation and Development) Act, 2016 — popularly known as RERA — was introduced to bring transparency, accountability, and fairness to the Indian real estate sector. It aims to protect the interests of homebuyers or allottees by clearly defining their rights and duties when entering into an agreement with a real estate promoter.

One of the key features of RERA is that it empowers the allottee with several rights, while also laying down duties that they must follow. This ensures smooth completion of projects and reduces disputes between promoters and buyers.

In this article, we will discuss in detail the Rights and Duties of Allottee under RERA, focusing on the provisions laid out in Section 19 of the Act. The explanation is kept simple and easy to understand, with proper structure to help readers grasp the subject clearly.

Who is an Allottee?

Before we begin, it is important to understand the term “allottee” under RERA.

• An allottee is any person who has entered into an agreement for sale with the promoter for an apartment, plot, or building in a real estate project registered under RERA.
• This includes buyers who have booked or purchased residential or commercial units in such projects.

The Act recognises the allottee as a key stakeholder whose rights need protection during the entire process of property sale and possession.

Importance of Allottee Rights and Duties in Real Estate

The real estate sector in India has traditionally been riddled with problems like:

• Delays in possession
• Lack of project transparency
• Hidden costs and charges
• Disputes over approvals and specifications
• Difficulty in obtaining refunds

RERA attempts to remedy these problems by clearly defining the rights allottees have against promoters, along with the duties allottees must perform to maintain balance and fairness.

This framework empowers buyers with legal recourse and promotes trust in the real estate market.

Rights of Allottee under RERA

The Act confers the following rights on allottees:

Right to Information (Section 19(1))

Allottees have the right to access complete and clear information about the real estate project they have invested in. This includes:

• Sanctioned plans: Layouts and construction plans approved by local or competent authorities.
• Specifications: Details about the quality and make of materials to be used.
• Other project details: Any other relevant information required under the Act or rules.
• Agreement for Sale: Terms and conditions agreed upon must be transparent.

Why this matters: Access to accurate information allows allottees to make informed decisions and understand exactly what they are purchasing. It also holds promoters accountable for the promises made.

Right to Know the Stage-wise Time Schedule of Completion (Section 19(2))

The allottee has the right to be informed of:

• The timeline for completion of various stages of the project.
• The schedule for provision of essential utilities like water, electricity, sanitation, and other agreed amenities.

This schedule must align with what is stated in the agreement for sale.

Why this matters: Knowing the timeline helps buyers track progress and detect delays early. It encourages promoters to adhere to deadlines and plan resources properly.

Right to Claim Possession (Section 19(3))

An allottee can claim:

• Possession of their apartment, plot or building as promised.
• The association of allottees is entitled to possession of common areas such as parks, corridors, parking lots, lifts, etc.

This possession is as per the declaration made by the promoter during registration.

Why this matters: This ensures allottees get rightful possession of their units and shared facilities, avoiding situations where possession is withheld or incomplete.

Right to Refund and Compensation (Section 19(4))

If the promoter:

• Fails to deliver possession as per the agreement; or
• Has their registration cancelled or suspended under the Act;

The allottee is entitled to:

• Full refund of amounts paid.
• Interest at a rate prescribed under RERA rules.
• Compensation for losses suffered, as provided by the Act.

Why this matters: This provides a strong safeguard and relief to buyers when projects fail or promoters default.

Right to Receive Necessary Documents (Section 19(5))

Upon handing over physical possession, the promoter must provide:

• Approved plans and layout documents.
• Documents relating to common areas.
• Any other legal or statutory documents necessary for ownership transfer.

Why this matters: Proper documentation ensures the allottee can legally register and prove ownership. It also clarifies rights over common areas and amenities.

Duties of Allottee under RERA

Alongside rights, the Act imposes certain duties on allottees to ensure smooth project execution and fair dealings.

Timely Payment of Amounts (Section 19(6))

Allottees must:

• Pay the purchase price and instalments as specified in the agreement.
• Pay their share of registration charges, municipal taxes, maintenance charges, utility bills, ground rent, and any other agreed fees.

Payments should be made at the time and place specified in the sale agreement.

Why this matters: Timely payments ensure promoters have funds to complete the project and maintain common areas.

Payment of Interest for Delay (Section 19(7))

If an allottee delays payments of any amounts due, they must:

Pay interest on the delayed amount at the rate prescribed by the Act or its rules.

Why this matters: It discourages delayed payments which can disrupt the promoter’s cash flow and delay the project.

Reduction of Payment Obligations by Mutual Agreement (Section 19(8))

The allottee’s payment obligations and interest liability can be reduced or waived if:

The promoter and allottee agree mutually and in writing.

Why this matters: This allows flexibility to resolve genuine financial hardships or disputes amicably.

Participation in Formation of Allottee Association (Section 19(9))

Allottees must:

Participate in the formation of an association, cooperative society or federation of allottees.

Why this matters: Such bodies help collectively manage common areas, maintain services, and protect shared interests.

5. Taking Physical Possession in Time (Section 19(10))

After the promoter receives the occupancy certificate, the allottee must:

Take physical possession of the unit within two months.

Why this matters: Delays in taking possession can create legal and logistical complications for both parties.

Participation in Conveyance Deed Registration (Section 19(11))

Allottees are required to:

• Participate actively in registration of the conveyance deed to legally transfer ownership.
• This registration is as provided under Section 17(1) of RERA.

Why this matters: This ensures legal title is properly transferred and protects the allottee’s ownership rights.

Practical Tips for Allottees to Protect Their Rights

Know Your Agreement and Project Details

• Always read and understand the agreement for sale.
• Verify sanctioned plans and project approvals with local authorities.
• Confirm the project is registered with RERA and check details on the official website.

Track Project Progress

• Request stage-wise completion schedules in writing.
• Visit the site periodically to assess construction progress.
• Keep records such as photos, receipts, and correspondence with the promoter.

Maintain Timely Payments

• Follow the instalment schedule carefully.
• Keep proof of payments.
• Communicate early with the promoter if financial difficulties arise to negotiate terms.

Be Active in Allottee Associations

• Join or help form an association of allottees.
• Attend meetings and raise concerns collectively.
• Work with other allottees to monitor maintenance and promoter compliance.

Take Possession and Register Ownership

• Upon completion and receipt of occupancy certificate, take possession within stipulated time.
• Obtain all necessary documents and plans.
• Complete conveyance registration promptly to avoid disputes.

Know Your Remedies

• If delays or breaches occur, send written notices to the promoter.
• Approach the Real Estate Regulatory Authority for complaints.
• Seek legal advice if necessary.

Conclusion

The Real Estate (Regulation and Development) Act, 2016, has brought a paradigm shift in the real estate sector by empowering allottees with statutory rights while ensuring they discharge certain duties. Understanding these rights and duties is crucial for every property buyer to:

• Protect their investment,
• Ensure timely possession of their property,
• Receive necessary project information and documentation,
• Participate in project maintenance and management, and
• Enforce legal remedies if needed.

By adhering to these provisions, allottees contribute towards a transparent, trustworthy and efficient real estate market in India.