What RERA Expects From Buyers: Allottee Duties Every Bengaluru Flat Buyer Should Know
A guide for Bengaluru flat buyers on their own obligations under RERA section 19: payments, interest on late instalments at the same rate as the builder, taking possession, forming the association, the conveyance deed and penalties for ignoring orders.
Most RERA guides for Bengaluru buyers focus on what the builder owes: timely possession, accurate advertisements, defect repairs and refunds. The Real Estate (Regulation and Development) Act, 2016 also sets out what buyers owe in return. A buyer who misses instalments, delays taking possession or ignores an order of the regulator can face consequences under the same Act that protects them.
The Housing Ministry's FAQs on the Act summarise these duties in a few short answers. This guide sets out what those answers say about payments, interest, possession, the association of allottees and the conveyance deed, and what happens when an allottee does not comply with an order. Knowing both sides of the bargain helps a buyer plan cash flow and avoid weakening their own position in any later dispute.
The short answer. According to the Ministry of Housing and Urban Affairs FAQs on RERA, section 19 sets out duties of allottees, including payment for the apartment or plot, liability for interest on delayed payment, responsibility to take possession, participating in forming the association, and registration of the conveyance deed. Under section 2(za), the rate of interest is the same for the promoter and the allottee. The trade-off: these duties are the counterpart to your rights, so meeting them keeps your claims against the builder strong.
What duties does RERA place on a flat buyer?
The FAQs explain that section 19 provides for various duties of allottees, such as payment for the apartment or plot, liability towards interest for delay in payment, responsibility to take possession, participation in the formation of the association, and registration of the conveyance deed.
These duties sit in the same section as the allottee's rights. The FAQs describe how section 19 also empowers the allottee to obtain information about sanctioned plans, layout plans and the schedule for completion, to claim timely possession as per the agreement, and to receive the necessary documents and plans after taking possession. The Act treats rights and duties as two halves of one relationship.
The person who holds these duties is the allottee. The FAQs explain that, under section 2(d), an allottee includes a person who acquires an apartment or plot through transfer or sale, but not a person to whom it is given on rent. A resale buyer of an under-construction flat therefore takes on the duties as well as the rights, a point we covered in our guide on resale buyers as allottees under RERA.
For a Bengaluru buyer, the practical effect is that the agreement for sale and the Act together define what you must do and when. The agreement sets the payment schedule and possession terms; the Act confirms that meeting them is a duty, not a courtesy.
What happens if a buyer pays late?
Interest becomes payable. The FAQs list liability towards interest for delay in payment among the allottee's duties under section 19. The rate is not left to the builder's discretion.
The FAQs explain that, as per the explanation to section 2(za), the rate of interest payable by either the promoter or the allottee shall be the same, and that the rate is to be specified by the appropriate Government in its rules. The same yardstick that governs what a builder pays you for delayed possession governs what you pay the builder for delayed instalments.
That symmetry is useful. If an agreement for sale or a demand letter applies a higher rate to the buyer's delays than to the builder's, the FAQs' reading of section 2(za) is the point to raise. The FAQs also explain that, under section 13(2), the agreement for sale cannot contain terms contrary to the Act and its rules.
The payment duty starts early. The FAQs explain that section 13 bars a promoter from accepting more than 10 percent of the apartment or plot cost as an advance or application fee without first executing an agreement for sale. Once that agreement is signed, it is binding on both parties, so the payment schedule it sets out becomes the yardstick for whether a buyer has paid on time.
We explained how delay interest works under Karnataka's framework in our earlier guide to delay interest for Bengaluru buyers under K-RERA. Check the current State rules before relying on any figure, since the rate is set there rather than in the Act.
Does a buyer have to take possession when it is offered?
Yes, taking possession is a duty. The FAQs list the responsibility to take possession among the allottee's duties under section 19. Once the builder offers possession in line with the agreement, the buyer is expected to take it.
This duty works alongside the buyer's rights at handover. The FAQs explain that, under section 14(2), the promoter is liable for five years from the date of handing over possession for structural defects and other specified defects, must rectify them within 30 days, and that aggrieved allottees are entitled to compensation if the promoter fails to do so. Taking possession does not mean accepting defects; it starts the clock on that liability.
The table below summarises the duties the FAQs list and how each connects to a buyer's rights.
| Duty under section 19 | What the FAQs say | The linked right or rule |
|---|---|---|
| Make payments | Payment regarding the apartment or plot | Timely possession as per the agreement |
| Pay interest on delays | Liability towards interest for delay in payment | Same interest rate for both parties, section 2(za) |
| Take possession | Responsibility to take possession | Five year defect liability from handover, section 14(2) |
| Help form the association | Participate in formation of the association | Common areas and documents handed to the association, section 17 |
| Register the conveyance deed | Registration of the conveyance deed | Transfer of title under section 17 |
Why do the association and conveyance deed matter?
Because they complete the transfer. The FAQs explain that section 17 provides detailed provisions for transferring title of the apartment to the allottee and the undivided proportionate title in the common areas to the association of allottees, and that the promoter is responsible for handing over the necessary documents and plans to the association or the competent authority.
The allottee's duties mirror that process. Participating in forming the association gives buyers a body to receive the common areas and documents. Registering the conveyance deed completes the buyer's own title. A buyer who leaves either step undone may find the builder's handover obligations harder to enforce, because there is no association to receive them or no registered title to anchor them.
The FAQs also note that, under section 2(n), common areas include community and commercial facilities, which are an integral part of the project to be handed over to the association of allottees. An active association is how buyers make sure that happens.
What if a buyer does not follow a RERA order?
Penalties can apply to allottees too. The FAQs explain that, under section 67, an allottee who fails to comply with orders of the regulator is liable to a penalty for every day of default, which may cumulatively extend up to five percent of the cost of the plot or apartment.
The consequences are heavier at the next level. Under section 68, as the FAQs explain, an allottee who fails to comply with orders of the Appellate Tribunal is liable to a penalty for every day of default, which may cumulatively extend up to ten percent of the cost of the plot or apartment, or imprisonment for a term which may extend to one year, or both.
These provisions show that the Act's enforcement runs in both directions. A buyer who wins an order against a builder expects it to be obeyed; the same expectation applies when an order goes against the buyer. If you believe an order is wrong, the FAQs explain that it can be appealed to the Appellate Tribunal and then to the High Court, rather than ignored.
How can a Bengaluru buyer stay on the right side of these duties?
Plan for the duties at the time of booking, not at handover. Whether you are buying in a project such as Sobha Madison Heights on our project pages or a smaller building, the same steps help.
- Read the payment schedule in the agreement for sale and match it to your loan disbursements.
- Check that the agreement applies the same interest rate to buyer and builder delays.
- Keep receipts for every payment and note the date each was made.
- Inspect the flat when possession is offered and list any defects in writing.
- Take possession as offered, without waiving your defect claims.
- Join the association of allottees and take part in its formation.
- Register the conveyance deed and keep a certified copy.
Meeting these duties is not only about avoiding interest or penalties. It also protects your hand in any dispute: a buyer whose payments are up to date and who has taken possession on time is in a stronger position to press the builder on delays, defects or handover documents.
What do Bengaluru buyers ask about allottee duties under RERA?
What are the duties of a flat buyer under RERA?
The Housing Ministry's FAQs say section 19 provides for duties of allottees such as payment for the apartment or plot, liability towards interest for delay in payment, responsibility to take possession, participation in forming the association, and registration of the conveyance deed.
Is the interest rate for buyer delays the same as for builder delays?
Yes. The Housing Ministry's FAQs explain that, under the explanation to section 2(za), the rate of interest payable by either the promoter or the allottee shall be the same. The rate itself is to be specified by the appropriate Government in its rules.
Does taking possession mean accepting defects?
No. Taking possession is a duty under section 19, but the Housing Ministry's FAQs explain that under section 14(2) the promoter remains liable for five years from handover for structural and other defects, and must rectify them within 30 days or pay compensation.
Can a buyer be penalised for ignoring a RERA order?
Yes. The Housing Ministry's FAQs say that under section 67 an allottee who fails to comply with the regulator's orders faces a daily penalty up to five percent of the unit cost, and under section 68 up to ten percent or imprisonment for Appellate Tribunal orders.
Last updated 2026-10-19. PropNewz Team.
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