5 Smart Ways to Protect Yourself from Real Estate Project Delays

When buying a home, one of the biggest challenges a homebuyer may face is project delays. These delays not only disrupt plans but also cause financial and emotional strain. Here are five smart ways to protect yourself against legal pitfalls and ensure a smoother home-buying process.

1. Understand Your Legal Rights Under RERA

To safeguard homebuyers, the Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced. Under this act, project developers are allowed a maximum extension of one year for project completion. However, even with this extension, homebuyers are entitled to file a complaint if the project is delayed beyond the promised deadline.

Tip: Section 18 of the RERA Act allows homebuyers to either withdraw from the project or continue with it while demanding interest on the delayed possession until the handover of the property.

2. Seek Timely Legal Advice

Before signing any purchase agreement, it’s crucial to fully understand the terms and conditions. Homebuyers should seek legal advice to carefully review the agreement and identify any potential red flags. This helps avoid legal complications later on. Always remember that verbal agreements hold no legal value—ensure everything is documented.

3. Opt for Conciliation Over Litigation

Though filing a complaint with RERA is an option, it's important to note that many cases take longer than expected due to the overwhelming number of complaints. In such cases, it’s advisable to explore conciliation as a first step. Conciliation is a quicker, more cost-effective approach to resolving disputes between developers and homebuyers.

MahaRERA’s Conciliation and Dispute Resolution Forum: This forum offers an alternative dispute resolution platform, with representatives from homebuyer associations and promoter associations to help reach mutual settlements in a practical and unbiased manner.

4. The Importance of Due Diligence

A common mistake homebuyers make is failing to thoroughly investigate the project details before investing. For instance, some buyers may be misled by a developer’s verbal promises, which hold no legal standing if issues arise later. Ensuring all project-related information is disclosed and legally binding in the purchase agreement is essential.

Case Example: One homebuyer purchased a "ready-to-move-in" flat only to find that the purchase agreement stated a much later possession date. The lack of an Occupancy Certificate (OC) led to long delays and legal expenses, which could have been avoided with proper due diligence.

5. Always Play by the Book

Even though homebuyers have limited control over project delays, making informed decisions can help mitigate risks. It's crucial to verify all project details through the RERA website and other official sources. Hiring a legal expert can further ensure that you're making an informed purchase.

Key Tip: Always ensure that the purchase agreement aligns with RERA’s mandatory disclosures and is reviewed by a legal expert to avoid unnecessary delays and legal disputes.