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Understand your legal rights under the Real Estate (Regulation & Development) Act, 2016, and learn how home inspections help enforce developer warranty commitments.
The Real Estate (Regulation and Development) Act, 2016 (RERA) is an initiative by the Indian Government to enhance transparency in real estate transactions, creating a uniform regulatory environment. The Act came into force from 1st May, 2016, after being passed in Rajya Sabha (10th March, 2016) and Lok Sabha (15th March, 2016). All sections came into force on May 1, 2017.
RERA protects the interests of consumers by establishing the Real Estate Regulatory Authority, enforcing fast-track dispute resolutions, and placing responsibilities on both promoters and homebuyers. One of its most powerful guidelines is the 5-year defect liability warranty.
Applies to projects exceeding 500 square meters or having more than 8 apartments.
Mandates SBI interest MCLR + 2% delays penalty and escrow deposits to prevent diversion.
RERA mandates a 5-year developer warranty against structural issues. However, finding hidden dampness, electrical hazards, or structural micro-cracks requires specialized thermal cameras, moisture sensors, and technical inspection experts.
Classic Solution Advantage
We identify defect lists before handover so you can claim free repairs under RERA Section 14(3).
Under Section 14(3) of the Real Estate (Regulation and Development) Act, 2016, the developer is bound to rectify structural defects, quality issues, or workmanship faults reported within 5 years of possession.
Claiming defects requires documented proof. A home inspection report provides professional, legally-valid evidence:
To establish the Real Estate Regulatory Authority (RERA) in each state.
Ensure accountability towards allottees (home buyers) and protect their interest.
Infuse transparency, ensure fair-play and reduce frauds & delays.
Impose clear responsibilities on both promoters and allottees.
Establish regulatory oversight mechanism to enforce contracts.
Establish fast-track dispute resolution mechanism and Appellate Tribunals.
RERA has introduced structural safeguards to hold builders accountable and ensure prompt delivery of residential and commercial properties.
Developers are legally bound to rectify any structural defects, quality issues, or workmanship faults reported within 5 years of possession. The builder must repair the defect free of cost within 30 days.
Properties must be sold strictly on RERA Carpet Area (net usable floor area excluding external walls, shafts, balcony/verandah, and open terrace; but including internal partition walls) to eliminate deceptive pricing.
Developers must deposit 70% of customer advances into a separate dedicated project bank account. Withdrawals are certified by architects, CAs, and engineers in proportion to percentage completion. Accounts must be audited within 6 months of the financial year end by a practicing CA.
Developers cannot modify the sanctioned plans, structural designs, or layouts after bookings without the written consent of at least two-thirds (2/3) of the project's homebuyers.
Both homebuyers and promoters pay the exact same interest rate for delays (SBI highest Marginal Cost of Lending Rate plus 2%), ensuring parity in transactions.
Real estate brokers and agents must register with state RERA. They must maintain documents, verify builder records, and cannot advertise projects that are not registered.
Explore recent RERA rulings and amendments in major states ensuring enhanced construction quality monitoring.
Implementation: March 8, 2017
01.
MahaRERA proposed a pioneering framework requiring developers to submit bi-yearly quality assurance reports covering structural components, construction material testing, and workmanship.
02.
All submitted quality reports are published on the public MahaRERA portal. This allows buyers to inspect workmanship quality and trace defects before possession is handed over.
03.
Developers must employ certified professional engineers and architects to continuously monitor and log quality parameters, minimizing possession-day defect disputes.
Before taking keys or signing possession documents, hire our professional engineering inspection team. We provide a certified checklist of structural, electrical, and plumbing defects to submit to your builder.