Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

Rights and Duties of Allottees under RERA

Updated 11 October 2026 · Fact-checked

Under the Real Estate (Regulation and Development) Act, 2016, an allottee has rights to information, possession, documents, and refund with interest and compensation on promoter default (sections 18 and 19). The allottee also has duties: pay on time, take possession, and join the association. Answer by stating the provision, applying facts, then concluding.

Understand Rights and Duties of Allottees

A buyer of a flat or plot in a real estate project is an allottee. The Act protects the allottee because the promoter holds most of the information and the money. The main rules sit in section 19 (rights and duties of allottees) and section 18 (return of amount and compensation). Section 11 lists what the promoter must do, and it is the mirror image of the allottee's rights.

The allottee's rights are mostly rights to know and to receive. You can get the sanctioned plans, layout plans and specifications. You can know the stage-wise time schedule of completion, including water, sanitation, electricity and other amenities as agreed. You can claim possession of your apartment, plot or building. The association of allottees can claim possession of the common areas. After possession, you are entitled to the necessary documents and plans, including those of the common areas.

The strongest right is the refund right. If the promoter fails to give possession as per the agreement for sale, or cannot do so because registration is suspended or revoked, the allottee can claim a refund of the amount paid with interest at the prescribed rate, plus compensation. Section 18(1) gives a choice. If you want to withdraw, the promoter must return the amount with interest and compensation on demand. If you do not want to withdraw, the promoter must pay interest for every month of delay until possession is handed over.

The allottee also has duties. You must pay as and when the agreement for sale says, and pay your share of registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges. You pay interest at the prescribed rate on delayed payment. You must take part in forming an association of allottees, take physical possession within two months of the occupancy certificate, and take part in registering the conveyance deed.

The Act is balanced. Both sides carry interest for delay. The allottee's payment obligations and interest liability can be reduced if the promoter and the allottee mutually agree. Unpaid interest, penalty or compensation is recoverable as arrears of land revenue under section 40.

Key rules to remember

Information rights - section 19(1) and (2): Allottee may obtain: sanctioned plans, layout plans, specifications + stage-wise time schedule of completion, including amenities; Section 11(3) makes the promoter responsible to provide this at booking and issue of allotment letter.
Possession and documents - section 19(3) and (5): Allottee: possession of apartment/plot/building; association: possession of common areas; documents and plans after physical possession; Possession is claimed as per the promoter's declaration under section 4(2)(l)(C).
Refund and compensation - sections 19(4) and 18(1): Default in possession as per agreement for sale, or discontinuance of business on suspension or revocation of registration → refund of amount paid + interest at prescribed rate + compensation; This applies on demand when the allottee wishes to withdraw from the project.
Interest if allottee stays - proviso to section 18(1): Allottee not withdrawing → interest for every month of delay till handing over of possession, at prescribed rate; The rate is prescribed by the rules. Do not quote a figure unless the question gives it.
Defective title - section 18(2): Loss due to defective title of land → promoter compensates; claim not barred by limitation under any law; This is the special no-limitation rule.
Other defaults - section 18(3): Failure to discharge any other obligation under Act, rules, regulations or agreement → compensation; A general residual remedy.
Allottee's payment duties - section 19(6), (7), (8): Pay per agreement for sale + share of registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, other charges; interest on delay; may be reduced by mutual agreement; Section 19(6) refers to an allottee who has entered into an agreement for sale under section 13.
Other allottee duties - section 19(9), (10), (11): Participate in forming association; take physical possession within two months of occupancy certificate; participate in registering conveyance deed (section 17(1)); The two-month period runs from the occupancy certificate.
Recovery - section 40(1): Unpaid interest, penalty or compensation → recoverable as arrears of land revenue; Applies to promoter, allottee and real estate agent.

How to solve Rights and Duties of Allottees questions

Use this method for any question on allottees' rights, refund or duties. It keeps your answer in the ICSI style: provision, facts, conclusion.

1Read the facts and mark the dates: agreement for sale date, promised possession date, actual delay, occupancy certificate date.
2Identify who is asking for what: the allottee claiming a right, or the promoter claiming an allottee's duty.
3State the provision: section 19 for rights and duties, section 18 for refund and compensation, section 11 for the promoter's matching duty.
4Apply the facts. Check whether the promoter failed to give possession as per the agreement for sale, or the registration was suspended or revoked.
5Check the allottee's choice: withdrawing means refund with interest and compensation; staying means monthly interest till possession.
6Check the allottee's own compliance: payments made on time, possession taken within two months of the occupancy certificate.
7Write a clear conclusion that answers the question asked. Mention recovery under section 40 if money is unpaid.

Quickest way: Three-column check: Right, Duty, Remedy

When to use it: Use this when time is short, especially for short-note or case-based questions.

Write the section first: 19 for rights and duties, 18 for refund.
Put the facts into one line: who defaulted and how.
Decide the remedy: withdraw means refund plus interest plus compensation; stay means monthly interest.
Add one line on the allottee's own duty if the facts hint at late payment or refusal to take possession.
Close with a one-sentence conclusion.

Common mistakes in Rights and Duties of Allottees

Saying the allottee can get a refund only if they withdraw, and nothing otherwise.
Students remember only the refund part of section 18(1).
Fix: Remember the proviso: an allottee who stays in the project is paid interest for every month of delay till possession.
Quoting a fixed interest rate from memory.
Students mix the Act with state rules.
Fix: The Act says interest at such rate as may be prescribed. Say that, and use any rate given in the question.
Treating allottee duties as one-sided and ignoring interest on the allottee's delay.
The rights get more attention than section 19(6) and (7).
Fix: State that the allottee pays on time and pays interest at the prescribed rate for delay, which may be reduced by mutual agreement.
Saying the allottee must take possession within two months of the agreement or completion.
The trigger is confused.
Fix: Section 19(10) says within two months of the occupancy certificate for that apartment, plot or building.
Applying a limitation period to a defective title claim.
Students assume all civil claims are time-barred.
Fix: Under section 18(2), a compensation claim for defective title is not barred by limitation under any law.
Confusing allottee rights in section 19 with promoter duties in section 11.
Both sections deal with plans, schedules and possession.
Fix: Cite section 19 when the allottee claims, and section 11 when the question asks what the promoter must do.

Worked examples

Example 1

Ananya booked a flat in a registered project in Pune under an agreement for sale. The agreement promised possession by 31 March. The promoter has not completed the flat. Ananya has paid ₹40,00,000. Advise her on her options under RERA.

Show the solution

Provision: section 18(1) applies when the promoter fails to complete or give possession by the date specified in the agreement for sale. Section 19(4) gives the allottee a matching right.
Facts: the date specified has passed and possession is not given, so the promoter has defaulted.
Option 1: if Ananya wishes to withdraw, the promoter must, on demand, return the amount received (₹40,00,000) with interest at the prescribed rate, including compensation as provided under the Act.
Option 2: if she does not wish to withdraw, the promoter must pay her interest for every month of delay until possession is handed over, at the prescribed rate.
Recovery: if the promoter does not pay amounts imposed by the competent forum, they are recoverable as arrears of land revenue under section 40(1).

Answer: Ananya may either withdraw and claim a refund of ₹40,00,000 with interest at the prescribed rate and compensation, or stay and claim monthly interest for each month of delay until possession is given.

Example 2

Rohit, an allottee in a Hyderabad project, has been informed that the occupancy certificate has been issued. He has not paid the maintenance charges due under the agreement and has not taken possession for four months. The promoter asks about his obligations. Explain.

Show the solution

Provision: section 19 sets out the allottee's duties.
Possession: under section 19(10), Rohit must take physical possession within two months of the occupancy certificate. Four months is beyond that period, so he is in breach.
Payments: under section 19(6), he must pay maintenance charges and other charges as specified in the agreement for sale, at the proper time and place.
Interest: under section 19(7), he is liable to pay interest at the prescribed rate for the delay in payment.
Relief: under section 19(8), the obligation and interest may be reduced only if the promoter and Rohit mutually agree.
Other duties: he must also take part in forming the association of allottees and in registering the conveyance deed.

Answer: Rohit has breached section 19(10) by not taking possession within two months of the occupancy certificate, and section 19(6) by not paying the maintenance charges. He is liable to pay interest at the prescribed rate under section 19(7), unless the promoter agrees to reduce it under section 19(8).

Exam tips

Always name section 19 for rights and duties and section 18 for refund. ICSI answers earn marks for the correct provision.
Learn the two-way choice in section 18(1): withdraw means refund plus interest plus compensation; stay means monthly interest.
Write that interest is at the rate prescribed. Do not invent a percentage.
In a case question, check the allottee's own conduct. Late payment or delayed possession-taking changes the answer.
Keep a short list of section 19 sub-sections (1 to 11) in memory, split into rights (1 to 5) and duties (6 to 11).

Practice questions from Real Estate Regulation and Development Law

Rights and Duties of Allottees: frequently asked questions

What are the main rights of an allottee under RERA?

Under section 19, the allottee may obtain information on sanctioned plans and specifications, know the stage-wise completion schedule, and claim possession. The allottee may also claim a refund with interest and compensation on default, and receive documents and plans after possession.

When can an allottee claim a refund with interest under RERA?

When the promoter fails to complete or give possession as per the agreement for sale, or cannot do so because registration is suspended or revoked, or on discontinuance of business. The allottee must wish to withdraw from the project, and the promoter must return the amount with interest and compensation on demand.

What if the allottee does not want to withdraw from the project?

Under the proviso to section 18(1), the promoter must pay the allottee interest for every month of delay until possession is handed over. The rate is the one prescribed.

What are the duties of an allottee under the Real Estate Act, 2016?

The allottee must make payments on time and pay the share of charges such as taxes and maintenance. The allottee must also pay interest on delay, help form an association, take possession within two months of the occupancy certificate, and join the registration of the conveyance deed.

How is compensation or interest ordered under RERA recovered?

Under section 40(1), unpaid interest, penalty or compensation is recoverable as arrears of land revenue in the prescribed manner. Section 40(2) lets orders and directions be enforced in the prescribed manner.