A Bengaluru family booked an under construction flat with a possession date written into the agreement for December 2023. That date came and went, then another festival season, and by 2025 the builder was still offering fresh promises instead of keys. What the family did not fully realise was that the delay had already handed them a clear legal right, one they could exercise without begging the builder for goodwill. Under RERA, a possession delay is not just a disappointment; it triggers specific remedies the law puts squarely in the buyer's hands. This guide explains what Section 18 of the law actually gives you.

The short answer. Under Section 18 of the RERA Act, if a builder fails to hand over possession by the date in your agreement for sale, you can either withdraw from the project and claim a full refund of what you paid together with interest, or stay in the project and claim interest for every month of delay until you get possession. The trade off you must weigh: withdrawing gets your money back with interest but ends your claim on the home, while continuing keeps the home and compensates the wait. Both are your right, not the builder's favour.

What does RERA Section 18 give a delayed buyer?

Section 18 gives a buyer two clear remedies when a promoter fails to complete or hand over possession by the time promised in the agreement for sale. As explained in a summary of Section 18, a buyer facing a delay can either withdraw from the agreement and demand a refund from the builder, or continue with the agreement and receive interest as compensation for the delay. These are alternatives; you choose the one that suits your situation.

What makes Section 18 powerful is that these rights do not depend on the builder's agreement or on fine print in the contract. Courts have treated the buyer's right to a refund with interest on delayed possession as strong and not easily diluted by contractual clauses. So the starting point for any delayed buyer is not to plead for a new date, but to understand that the law already gives you a choice, and then to decide which option protects you best.

Option one: withdraw and get a refund with interest

The first remedy is to exit the project entirely. If the builder misses the possession date in the agreement, you can withdraw and claim a full refund of the amount you have paid, along with interest on that amount. This is the route for a buyer who has lost confidence in the project, needs the money back, or simply cannot keep waiting on a home that may be years away.

The important feature here is that the refund is meant to come with interest, not just the bare amount you paid. The law recognises that your money was locked up in a home that was never delivered on time, and it compensates you for that. Choosing this route ends your claim to the flat, so it is a decision to make with clear eyes, but for many buyers stuck with a badly delayed project, getting their capital back with interest is the cleaner exit.

Option two: continue and claim interest for the delay

The second remedy is to stay with the project and be compensated for the wait. If you do not want to withdraw, the promoter must pay you interest for every month of delay, from the promised possession date until the flat is actually handed over. You keep your booking and your future home, and the builder pays for the time they cost you.

This is often the choice where the project is genuinely progressing and you still want the home, but the builder has slipped past the deadline. The monthly interest is calculated on the amount you have paid, and it accrues for the whole period of delay, which gives the builder a real incentive to finish. For a buyer who believes in the project but resents the delay, this remedy lets you hold on to the home while making the delay cost the builder rather than you.

One practical point is worth stressing: the interest for delay is separate from any token penalty the builder may have written into the agreement for late possession. Builders sometimes insert a small, fixed delay compensation, often a nominal amount per square foot, and treat it as the full extent of their liability. Section 18 gives a statutory interest right that stands on its own, and a buyer should not assume a meagre contractual penalty is all the law allows them to claim.

How is the delay measured, and what interest applies?

The delay is measured from the possession date written into your agreement for sale, which is why that date is one of the most important lines in the whole contract. Everything under Section 18 keys off it: miss it, and the remedies switch on. So before you ever sign, confirm the possession date is clearly and specifically stated, not left vague or hidden behind conditions that let the builder move it at will.

On the interest rate, the law provides that the rate is prescribed under the RERA rules rather than left to the builder, and it is commonly set with reference to a bank lending rate plus a margin. Because the exact prescribed rate is fixed by the applicable rules and can be updated, confirm the current rate that applies to your case rather than relying on an old figure. The principle, though, is constant: the interest is a defined legal entitlement, not a number the builder gets to negotiate down.

Refund versus continuing: how do they compare?

The two options serve different needs, and this table lays out the choice so you can match it to your situation.

Neither option is universally right; it depends on whether you still want the home and how much faith you have in the builder finishing. The point of Section 18 is that both doors are open to you, and the builder cannot force you through one or the other. You choose.

How do you actually claim under Section 18?

Exercising your rights is a process, and doing it in order strengthens your case. These steps outline the path.

1. Confirm the exact possession date stated in your registered agreement for sale.
2. Establish that the date has passed and possession has not been validly handed over.
3. Decide clearly whether you want to withdraw for a refund or continue with interest.
4. Send the builder a formal written notice setting out the delay and your chosen remedy.
5. Gather your payment records, the agreement, and all communication on possession.
6. File a complaint with the RERA authority or adjudicating officer for your state.
7. Take legal advice so your complaint is framed correctly and your evidence is complete.

Before you ever reach this stage, choosing the right builder reduces the risk. Our guide on verifying a builder's track record and RERA complaints shows how to check a developer's delivery history, and our comparison of ready to move versus under construction flats weighs the delay risk that Section 18 exists to address.

What if the builder blames force majeure or outside events?

Builders often cite outside events to explain delays, but Section 18 rights are not easily brushed aside by such explanations. Courts have treated the buyer's remedy of a refund with interest as a strong entitlement that contractual clauses and general appeals to circumstances do not automatically defeat. A genuine, narrowly defined force majeure event may be relevant, but a vague blanket excuse for years of delay is exactly what the law is designed to see through.

The practical lesson is not to accept a builder's explanation as the final word on your rights. If your possession date has passed, your Section 18 remedies are triggered regardless of the reasons offered, and it is for the appropriate authority, not the builder, to weigh any claimed excuse. Take the delay seriously as a legal event, document it, and get advice, rather than settling for another promise because a reason sounds plausible.

Frequently asked questions

What can I do if my builder delays possession under RERA?

Under Section 18 of the RERA Act, you have two options when the builder misses the possession date in your agreement. You can withdraw from the project and claim a full refund of what you paid with interest, or continue in the project and claim interest for every month of delay until possession. The choice is yours, not the builder's.

Do I get interest if I keep the flat despite the delay?

Yes. If you choose not to withdraw, Section 18 entitles you to interest from the promoter for every month of delay, from the agreed possession date until the flat is handed over. The interest is calculated on the amount you have paid, at a rate prescribed under the RERA rules, and accrues for the whole delay.

How do I file a RERA complaint for delayed possession?

Confirm the possession date in your agreement has passed, decide whether you want a refund or interest, and send the builder a formal written notice. Then file a complaint with your state's RERA authority or adjudicating officer, with your payment records, agreement and correspondence. Taking legal advice helps ensure the complaint is framed correctly and fully supported.

Can a builder avoid Section 18 by citing force majeure?

Not easily. The buyer's right to a refund with interest on delayed possession has been treated by courts as a strong entitlement, not automatically defeated by contractual clauses or general appeals to outside events. A narrow, genuine force majeure event may be relevant, but it is for the authority to weigh, not the builder to use as a blanket excuse.

Last updated 14 July 2026. PropNewz Team.