When a builder misses a possession date, changes the specifications without consent, or fails to deliver what was promised in the builder-buyer agreement, buyers are often unsure which remedy actually applies to their situation, RERA, arbitration, or a straightforward breach of contract claim. The right answer depends on what exactly went wrong and what your specific agreement says, but the remedies available are broader than most buyers realise.
What Counts as a Breach
Common breaches in Bangalore builder-buyer agreements include delayed possession beyond the committed date, deviation from the sanctioned plan or promised specifications, failure to obtain the occupancy certificate before handover, and charging amounts not disclosed at booking. Each of these is a breach of the contractual promise the builder made, separate from any statutory violation under RERA.
Remedy 1: RERA, If the Project Is Registered
Under Section 18 of the Real Estate (Regulation and Development) Act, a buyer whose builder fails to deliver possession by the committed date has an absolute right to a refund with interest, or to continue with the project and claim compensation for the delay. This right does not depend on proving the builder was at fault beyond the delay itself, refund with interest is available essentially as of right once possession is delayed. Compensation claims specifically are handled by the Adjudicating Officer, appointed under Sections 71 and 72 of the Act, while refund and interest matters can be pursued before the Karnataka RERA Authority itself.
Remedy 2: Civil Suit for Breach of Contract
Where the issue is not about delayed possession but about a specific contractual promise not being honoured, wrong specifications, undisclosed charges, denial of promised amenities, a civil suit for breach of contract, or a suit for specific performance, may be the more direct route. This is a longer process than RERA but can address disputes RERA is not designed to resolve.
Remedy 3: Consumer Court
Buyers can also approach consumer forums for deficiency in service, and Indian courts have repeatedly held that the existence of a RERA remedy does not automatically bar a consumer complaint, though pursuing both simultaneously for the same relief is not advisable. Which forum makes sense depends on the nature of the claim and the relief actually being sought.
What an Arbitration Clause Changes
If your builder-buyer agreement contains an arbitration clause, as discussed in our guide on arbitration in Karnataka property disputes, the builder may argue that any contractual dispute must go to arbitration rather than a civil court. Courts have taken varying positions on how far such clauses can restrict a buyer's access to RERA or consumer forums, which makes it important to have the specific clause reviewed rather than assuming it forecloses every option.
Building Your Case
- Keep every written communication with the builder, particularly anything acknowledging delay or defects
- Retain payment receipts and the original agreement with all annexures and specification sheets
- Get an independent assessment of the actual construction status against what was sold, especially for delayed projects
Where to Start
The right forum for your specific breach, RERA, consumer court, or civil suit, depends on facts that need a proper legal review before you file anywhere. Clawrity advises buyers on builder-buyer agreement breaches and represents them before Karnataka RERA and consumer forums. See our Breach of Contract service or contact us to assess your options.