Many buyers skip or misread critical provisions in builder-buyer agreements.
Haryana Real Estate Regulatory Authority (Rera) recently dismissed a homebuyer's compensation claim for delayed possession, citing late filing.
The buyer received possession in September 2020 -- four years after the promised June 2016 date -- but filed the complaint only in April 2024.
Several claims have been rejected in the past due to mistakes on buyers' part.
Weak documentation
Many homebuyers lose Rera cases because of poor documentation.
"Key records like the builder-buyer agreement, payment proofs, delay-related correspondence, and objections before possession are often missing," says Nidhi Singh, partner, IndiaLaw LLP.
She adds that buyers must preserve all relevant documents: allotment letters, receipts, protest e-mails, and possession papers.
Inflated claims
Many buyers hurt their case by seeking arbitrary amounts for mental agony or speculative losses.
"Such overreach damages their credibility and can lead to outright dismissal or significantly reduced compensation by the tribunal or authority.
"Being reasonable and precise resonates better with decision-makers," says Kshitij Bishnoi, partner, CMS IndusLaw.
Failure to prove hardship
Evidence of hardship is crucial in cases where compensation is demanded from Rera for delays.
"Only showing that possession was delayed is not sufficient, especially if the buyer has already accepted the unit, signed handover documents, or did not object for years.
"The aspect that strengthens a buyer's case is proof that the delay caused measurable damage," says Singh.
Rent receipts, lease agreements, and records of medical or personal emergencies can support a claim.
Choosing the wrong forum
Homebuyers often approach the wrong forum, largely due to lack of awareness.
"A buyer may approach Rera for compensation, when such monetary claims -- especially those exceeding Rs 1 crore -- are better suited for the National Consumer Disputes Redressal Commission," says Soumya Banerjee, partner, Aquilaw.
"Rera is best for delays in possession and claims for interest or penalties under the Act. Consumer forums are suitable for refunds, compensation for mental agony, construction defects, or service deficiencies, while civil courts handle complex cases involving title disputes, ownership issues, and injunctions involving the project or unit," says Bishnoi.
Misfiling can result in delays, dismissal, or redirection.
Overlooking key clauses
Many buyers skip or misread critical provisions in builder-buyer agreements.
"These contracts often include one-sided terms on possession timelines, delays, penalties, and compensation waivers that buyers unknowingly accept.
"Since courts treat these agreements as binding unless proven unfair, it is crucial to review them carefully, ideally with legal help," says Banerjee.
Filing solo cases
Filing complaints individually in large projects can weaken a buyer's bargaining power.
"Rera and consumer forums are more likely to take serious note of group grievances, rather than isolated dissatisfaction, as they reflect systemic failure," says Banerjee.
When multiple buyers complain, it creates pressure both on the builder and the forum to expedite the matter.
Skipping notice, delay in filing
Not sending a legal notice often means missing an early resolution.
"Well-crafted legal notices frequently bring builders to the table -- sometimes resolving issues without protracted litigation.
"If litigation does follow, a notice strengthens your case," says Bishnoi.
Forums have become strict about limitation periods.
Consumer courts apply a two-year limit from the cause of action, typically the promised possession date.
"Calculating the limitation period accurately is critical, as missing this window can mean losing the right to pursue any legal remedy at all," says Adnan Siddiqui, partner, King Stubb & Kasiva, Advocates and Attorneys.
Steps to take before filing complaint
- Consult a real estate lawyer early; don't wait for trouble to escalate
- Send a strong legal notice to assert your claim
- Keep all records -- e-mails, chats, receipts, screenshots
- Try settlement or mediation to save time and cost
Source: King Stubb & Kasiva, Advocates and Attorneys
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