Quick answer
- If a structural defect or a defect in workmanship, quality or services is reported within five years of possession, the builder must fix it within 30 days at no cost, or pay compensation (Section 14(3), RERA).
- Complaints go to the State RERA authority (Section 31), and compensation claims to its adjudicating officer (Section 71). Consumer commissions are an alternative.
- A builder cannot take more than 10% of the price before signing a registered agreement for sale (Section 13), and the price must be based on carpet area.
- One-sided clauses in builder-buyer agreements are unfair trade practices and are not binding (Pioneer Urban Land v. Govindan Raghavan, 2019).
Getting the keys is not the end of a buyer’s rights. Cracks, seepage, poor fittings and missing amenities are common complaints in Noida, Greater Noida and Ghaziabad projects, and RERA gives buyers a clear remedy.
What is the builder’s defect liability under RERA?
Section 14(3) of the Real Estate (Regulation and Development) Act, 2016 says that if any structural defect, or any other defect in workmanship, quality or provision of services, or any other obligation of the promoter under the agreement, is brought to the promoter’s notice within five years from the date of handing over possession, the promoter must rectify it within 30 days without further charge. If the promoter fails, the allottee is entitled to appropriate compensation.
What counts as a defect?
- Structural problems: cracks in beams, columns or slabs, settlement, serious seepage
- Workmanship and quality: poor plaster or flooring, leaking plumbing, faulty wiring, sub-standard fittings
- Services and amenities promised in the agreement or brochure but not delivered, such as lifts, power backup, clubhouse or parking
- Deviation from the approved layout or specifications
How do you claim?
- Inspect the flat at possession and record defects in writing, with photographs and dates.
- Send a written notice to the builder listing the defects and asking for rectification within 30 days under Section 14(3). Keep proof of delivery.
- If the builder does not act, file a complaint with UP RERA (for Noida, Greater Noida and Ghaziabad) under Section 31. RERA can order rectification and interest.
- For compensation, apply to the RERA adjudicating officer under Section 71.
- Alternatively, you may file a consumer complaint (Imperia Structures v. Anil Patni, (2020) 10 SCC 783). Read how to file on e-Jagriti.
Residents’ welfare associations can file collective complaints for common-area defects.
What red flags should you check in a builder-buyer agreement?
- No RERA registration number, or a mismatch with the project details on the RERA website
- Price on “super area” instead of carpet area. RERA requires sale on carpet area (Section 2(k))
- Advance above 10% taken before a registered agreement for sale (Section 13)
- Unequal interest rates: 18% for your delay but 6% or less for the builder’s delay. RERA requires the same rate on both sides
- Heavy forfeiture of amounts paid on cancellation, beyond a reasonable earnest amount
- Open-ended possession dates or wide “force majeure” clauses
- Unilateral changes to the layout or specifications without the consent required under Section 14(2)
- Escalation charges, preferential location charges and maintenance deposits not clearly listed
In Pioneer Urban Land & Infrastructure v. Govindan Raghavan, (2019) 5 SCC 725, the Supreme Court held that a buyer cannot be bound by one-sided contractual terms, and in Wg. Cdr. Arifur Rahman Khan v. DLF Southern Homes, (2020) 16 SCC 512, it held that such clauses amount to an unfair trade practice.
What about the conveyance deed?
The builder must execute a registered conveyance deed in your favour, and hand over common areas to the association, within three months of the occupancy certificate (Section 17). You must take possession within two months of the occupancy certificate (Section 19(10)).
Delayed possession instead?
If the problem is delay rather than defects, read refund with interest through UP RERA. Under Newtech Promoters v. State of U.P., (2021) 18 SCC 1, the right to a refund for delay is unconditional.
Need help?
We represent buyers and RWAs before UP RERA, Haryana RERA, Delhi RERA and consumer commissions. Speak to our RERA lawyer in Ghaziabad, see our civil law practice, or contact us.
Frequently asked questions
How long is the builder liable for defects after possession?
Five years from the date of handing over possession, for defects brought to the builder’s notice within that period, under Section 14(3) of RERA.
How quickly must the builder fix a reported defect?
Within 30 days of being notified, without charging you. If it fails, you can claim compensation through RERA.
Can an RWA complain about defects in common areas?
Yes. A registered residents’ welfare association can file a complaint before RERA on behalf of its members for common-area defects.
Is a clause allowing the builder to change the layout valid?
Not without consent. Under Section 14(2), changes to the sanctioned plans or common areas need the written consent of at least two-thirds of the allottees, apart from minor changes.
Sources
- Real Estate (Regulation and Development) Act, 2016 — Sections 2(k), 13, 14, 17, 18, 19(10), 31 and 71
- Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016
- Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725
- Wg. Cdr. Arifur Rahman Khan v. DLF Southern Homes Pvt. Ltd., (2020) 16 SCC 512
- Imperia Structures Ltd. v. Anil Patni, (2020) 10 SCC 783
- Newtech Promoters & Developers Pvt. Ltd. v. State of U.P., (2021) 18 SCC 1
This article is general legal information, not legal advice for your specific case. Law and procedure change; please consult an advocate before acting.
