6 Critical Mistakes Homebuyers Must Avoid - Even RERA Can’t Save You From These!

May 17, 2025
6 Critical Mistakes Homebuyers Must Avoid - Even RERA Can’t Save You From These!

When it comes to buying property in India, most homebuyers today rely on the Real Estate (Regulation and Development) Act (RERA) for protection against fraudulent or unfair developer practices. But here's a hard truth: even RERA can’t protect you if you make certain critical mistakes during your homebuying journey.

While RERA is a landmark regulation empowering homebuyers, its protection isn’t absolute. From entering into risky agreements to ignoring legal timelines, buyers can unknowingly weaken their legal standing — and may find themselves without compensation or legal recourse.

Whether you're a first-time buyer or a seasoned real estate investor, understanding these pitfalls is key to making a safe and rewarding property investment.


What is RERA, and Why Is It Important?


Enacted in 2016, the Real Estate (Regulation and Development) Act (RERA) aims to regulate the real estate sector, increase transparency, and safeguard homebuyers from delayed possessions, false promises, and unregulated pricing.

RERA mandates that all new projects above a certain size must register with the authority and follow strict guidelines. However, its jurisdiction is not all-encompassing, especially when buyers unknowingly waive their own rights.


6 Mistakes Homebuyers Must Avoid - Or Risk Losing RERA Protection


1. Signing Agreements with Unilateral Clauses

Many developers insert unilateral clauses in sale agreements, giving them unchecked authority — such as cancelling allotments or altering project specs — without buyer consent.


Pro Tip: Always review legal documents (NOCs, affidavits, undertakings) with a legal expert. Once signed, these documents can limit your rights to raise claims under RERA.

Such clauses can render RERA powerless, as they are legally binding and often favor the builder in disputes.


2. Engaging in All-Cash Transactions at the Booking Stage

Trying to save on stamp duty through under-the-table cash payments might seem tempting, but it can destroy your legal position in case of cancellation or refund requests.


All-cash deals are not recognized officially and leave no statutory trail, giving you almost zero legal protection.

Under RERA, only official transactions with proper documentation hold value. Without these, your complaint may be dismissed outright.


3. Defaulting on Payment Timelines

If you're not paying on time as per the agreement, you may lose your right to claim compensation for delays in possession.

A Gujarat High Court ruling confirms that buyers defaulting on payment cannot hold the builder accountable for delays.

Additionally, if a buyer refuses to take possession after the Occupancy Certificate (OC) is granted, they may become liable for maintenance charges.


4. Accepting Revised Possession Dates Without Legal Advice

Many buyers, hoping for quick possession, informally accept revised timelines. This is a trap. Any such acceptance — oral or written — may be considered a waiver of your rights under RERA.


Even verbal acceptance or WhatsApp messages can be used against you in RERA proceedings.

Always consult a lawyer before agreeing to a new timeline or signing any addendum to your original agreement.


5. Delaying the Filing of Complaints

While RERA doesn't define a strict deadline to file complaints, delays can be fatal to your case. Courts have emphasized that complaints must be filed within a "reasonable time" from the issue date.


Claims filed after an extended delay may be dismissed as “time-barred” — leaving buyers with no relief.

Also, issues such as structural defects reported after 5 years of possession are not covered under Section 14(3) of RERA.


6. Falling for Pre-EMI, Subvention, or Rental Return Schemes

Many buyers opt for subvention or rental return schemes, where the developer pays interest or rent during the construction phase. But if the builder defaults, RERA won’t intervene.

These are private contracts, not covered under RERA. You're on your own if things go south.

Such schemes lack legal enforceability under RERA, and homebuyers are advised to avoid them or at least verify legal implications thoroughly.


Who Is RERA Applicable To?

  1. Only to projects registered under RERA
  2. Projects that are ongoing or future developments
  3. Projects that are larger than 500 sq. m. or involve more than 8 units


If the project is pre-RERA or below the regulatory threshold, buyers will need to seek help from consumer or civil courts instead.


Final Thoughts: Due Diligence Is Your Best Investment


While RERA has transformed the Indian real estate market, the onus still lies on the buyer to stay informed and vigilant. Don't let common mistakes rob you of your rights. Hire a qualified legal advisor, understand every document before signing, and ensure you choose a RERA-registered project from a reputed developer.


Proppulse.ai Tip: Use our property platform to explore only RERA-verified projects, analyze real-time legal insights, and make data-backed investment decisions across India’s top-performing cities.