AAP Tax Law

Real Estate (Regulation and Development) Act, 2016

Section 19 RERA: Rights and Duties of Allottees

Section 19 of the Real Estate (Regulation and Development) Act, 2016 (RERA) sets out the rights of homebuyers and other allottees, as well as their responsibilities concerning payment, possession, participation in the association of allottees and registration of conveyance deeds.

Who is an allottee under RERA?

Under Section 2(d), an allottee generally means a person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by the promoter, including a subsequent acquirer; a person occupying the property on rent is excluded. A promoter under Section 2(zk) includes developers and other persons specified in that definition. Common areas under Section 2(n) include designated common facilities, land and shared portions of a project as specified by the Act.

1. Allottees' rights to project information - Section 19(1) and (2)

An allottee may obtain sanctioned and layout plans, approved specifications and information promised under the Act, applicable rules and the agreement for sale. The allottee is also entitled to a stage-wise completion schedule, including the expected provision of water, sanitation, electricity and agreed amenities. The disclosures and obligations in Section 11 are relevant.

2. Possession, common areas and documents - Section 19(3) and (5)

Allottees are entitled to claim possession of their apartment, plot or building and, through the association, possession of common areas according to the promoter's declaration under Section 4(2)(l)(C). They are entitled to the necessary documents and plans, including common-area records, after physical possession is handed over. Section 17 separately governs conveyance and handover of documents.

3. Refund, interest and compensation - Section 19(4)

Where the promoter fails to give possession as required by the agreement for sale, or discontinues development because of suspension or revocation of registration, the allottee may seek a refund with prescribed interest and compensation in accordance with RERA. Section 18 further distinguishes a buyer who withdraws and seeks refund from one who remains in the project and seeks interest for delayed possession. The applicable interest rate and procedure depend on the relevant State or Union Territory rules.

4. Timely payments and interest - Section 19(6) to (8)

The allottee must pay instalments and charges at the agreed time and place, including applicable registration charges, municipal taxes, utilities, maintenance, ground rent and other agreed charges. Delayed payment may attract interest at the prescribed rate. Section 19(8) permits the promoter and allottee to mutually agree to reduce the obligations under subsection (6) and interest liability under subsection (7).

5. Association, possession and registration - Section 19(9) to (11)

Every allottee must participate in forming an association, society, cooperative society or federation. Section 19(10) requires taking physical possession within two months of issuance of the occupancy certificate for the relevant unit. The allottee must also participate in registering the conveyance deed as provided under Section 17(1). An occupancy certificate, defined in Section 2(zf), is a certificate issued by the competent authority permitting occupation under local law.

6. Practical checklist for homebuyers

  1. Keep the registered agreement for sale, payment receipts, allotment letter and project registration details.
  2. Review sanctioned plans, specifications, approvals and the promised completion schedule.
  3. Pay instalments and legally payable charges on time; raise billing disputes in writing with supporting records.
  4. Before accepting possession, verify the occupancy certificate, actual completion, essential services and handover documents.
  5. Participate in the association of allottees and the conveyance registration process.
  6. For unresolved violations, consider a complaint under Section 31 to the appropriate RERA Authority or adjudicating officer, according to the relief sought and applicable procedure.

7. Full text of Section 19: Rights and duties of allottees

(1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter.

(2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale.

(3) The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter under sub-clause (C) of clause (I) of sub-section (2) of section 4.

(4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder.

(5) The allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter.

(6) Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any.

(7) The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6).

(8) The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee.

(9) Every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same.

(10) Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be.

(11) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 17 of this Act.Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 17 of this Act.

8. Official legal resources

Consult the India Code portal for the central Act, the Ministry of Housing and Urban Affairs for central RERA information, and the relevant State or Union Territory RERA Authority for notified rules, regulations, project records and complaint procedures. State-specific provisions and later notifications should be checked before taking action.