The Real Estate sector has seen a significant growth the past years, however it was unregulated. Thus absence of regulation, created a havoc in the said sector as the developers were unable to complete the projects in the stipulated time and provide timely possession to the homebuyers. The aggrieved homebuyer approached the Consumer forum which fell inadequate to address all the concerns of buyers and promoters in that sector and the regulation the sector was emphasized on various forums. In the year 2016 RERA Act was enacted which is expected to bring relief for homebuyers and developers will have to give timely possession for projects.
Now, RERA being fully operational from May, 2017 accordingly every state has to establish Regulatory Authority which would be a special body dealing with the real estate sector. Each state has its own individual Real Estate Regulatory Authority. Wherein every developer has to register his real estate project with the respective state authority.
Following are major benefits to the Homebuyer under RERA:
- Establishment of Authority: Any grievance against the builder can be taken to the state authority set up under RERA, which shall have the power to redress all the grievances. In case a person is dissatisfied with the order further he can file an appeal with the Appellate Tribunal within 60 days from the date of order.
- Right to file complaint in case of default: An aggrieved person, can file a complaint under Section 31 (1) of the Act with Authority.
- Right of the buyer in case of Defect after possession: As per section 12 (3) in case of any structural defect or any defect in workmanship, quality, provision or service is discovered within 5 years after the possession of the apartment,
- Rights of the buyer Delay in possession: As per section 18, in case a promoter fails to complete or is unable to give possession of an apartment, plot or building such buyer has two vested rights 1. Withdraw from the project, wherein he shall be entitled to full refund along with interest payable from the due date of completion till the amount is refunded or 2.To continue with the project till the completion, wherein he will be entitled to compensation along with interest payable from the due date of completion of project till the project is actually completed.
- Standardized carpet area: as per the definition clause one of the major benefit for buyers included in the Act is that builders will have to quote prices based on carpet area not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.
- Rights of the buyer in case of defect in Title: As per section 18(2) after the possession of property if a buyer finds that there is a defect in the title of property then one can claim compensation from the builder.
- Right to Information: As per section 19(1) a buyer is entitled to obtain all the information regarding the project such approvals, layout plan sanction letters etc.
As of now, all RERA Authorities are functional in almost all states. The authorities though being on nascent stage are trying their best to deliver justice to all the aggrieved homebuyers. Time will though decide the exact position of Real Estate law in India but the start seems bright in all aspects.
Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.