Rights and Duties of the Allottees



Status as on- 26/03/2022

Buying a dream house takes almost a whole life of a middle-class family. However, it just shivers the life of a homebuyer, if, such a home buyer is defrauded by the smart tactics of the developer. Builders being in a dominant position usually infringe the rights of the homebuyers by making biased builder buyer agreements/allotment letters/application forms. And also, as there are bulk of documents which the developer gets signed by the buyer at the time of sale and usually the buyers even do not feel that courage to read such documents knowing the facts that the developer will never change such agreements on their request.

However, if everything goes well and you get your possession then there is nothing to worry about it! Even we would also love to have the sweets of your house, for that, you can invite us through the e-mail mentioned in the end!… haha….jokes apart! But what if in case any kind of default or ambiguity arises because of the developer or the allottee (i.e., the buyer), then you will realize what all the documents you have signed and the consequences of the same. But what to do next? As the documents have already been signed which means you have acknowledged the same. And there is no question from us as to why you signed that documents without reading them!

Here it becomes necessary for the home-buyer to know the rights available to him which will prevail even over the builder buyer agreement/allotment letter/Application Form. Such rights and duties are as follows –

  1. If the consent is obtained by the developer of the project through Undue Influence, Fraud or Misrepresentation then such a contract (i.e., Your Builder Buyer Agreement) would become voidable on the option of the party whose consent was taken by such undue influence, fraud, misrepresentation (i.e., the Homebuyer Consent) and the same can be proved under the Indian Contract Act.
  2. Moreover, as per Section 19 of the Real Estate (Regulation and Development) Act, 2016. An Allottee has the following rights & duties which even a developer nor the allottee can deny, no matter what has been written in the agreements, –
    • The allottee has the right to obtain information from the developer related to the sanctioned plans; layout plans along with the specifications, approved by the competent authority or as such any other information which has been agreed in the Builder Buyer Agreement (i.e., Agreement for Sale).
    • The allottee can know the stage-wise schedule of completion of the project.
    • The allottee has the right to claim possession of the apartment, apartment, or plot, as the case may be.
    • The allottee is entitled to claim the refund of the amount paid in case the developer makes the default as per the agreed terms in the agreement for sale.
    • The allottee has the right 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.
    • The Allottee must make all the payments as agreed and signed in the Agreement for Sale. However, any such alteration can be made as per mutual consent of the promoter and allottee.
    • The allottee is liable to pay the interest in the case of default in making payment as per the agreements for sale. However, such interest can be reduced or waived off as per the mutual consent of the promoter and the allottee.
    • 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.
    • The allottee must take physical possession of the apartment, plot, or building as the case may be, within two months of the occupancy certificate issued for the same,
    • Every allottee shall participate in the registration of the conveyance deed of the apartment, plot, or building, as the case may be.

Though it becomes the duty of the Allottee i.e., the buyer to read all the documents carefully and examine the consequences as to which may arise post-signing of such documents. However, neither the promoter nor the allottee can deny such rights & duties as mentioned above no matter what has been documented by the Builder or agreed by the Allottee.


Disclaimer-The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at rera@centrik.in


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