The Real Estate (Regulation and Development) Act, 2016 has been enacted by the Government for the protection of homebuyers against the unfair trade practices of housing development and real estate project developers. Developers have to compulsorily obtain all prerequisite approvals from government bodies before the project can be presented to the public. The developers have to further display all relevant information on the RERA website of the respective states.
If any developer, promoter or builder of the property doesn’t have the approvals or if s/he has defaulted under the Act in any manner, you may file a complaint before the RERA authorities through the most experienced RERA advocates in your locality.
Procedure for filing a complaint under RERA
- You must hire the top RERA lawyers in your locality to help you file the complaint before the appropriate authority.
- The procedure laid down by the State in which the property is located shall be followed.
- The fees for filing a complaint about RERA may also vary from state to state.
- The complaint must contain details of the name of the complaint, details of the developer, details of the property, amount paid, the relief sought, etc.
How does the RERA Act impact buyers?
Security: Under the RERA Act, at least 70% of the purchaser’s cash will be kept in a different escrow account. A different escrow record will guarantee that the cash gathered for a specific land venture isn’t occupied to different exercises/ventures embraced by the manufacturer/designer. The builders can’t request over 10% of the property’s estimation as a development installment before the deal understanding is agreed upon.
Transparency: Builders should present the first reports for all undertakings they attempt. Builders shouldn’t roll out any improvements to the arrangement/format of the task without the assent of the purchasers.
Fairness: RERA has now trained designers to sell properties dependent on cover zone and not overly developed territory. If the undertaking has been deferred, purchasers are qualified for get back the whole cash that they have contributed or they can likewise decide to contribute and get month to month speculation on their cash.
Quality: for a long time from the date of procurement, a home purchaser can raise any issue before the developer which must be settled by the manufacturer in 30 days from the date of warning of the issue to the developer.
Authorization: A manufacturer can’t promote, sell, assemble, contribute, or book a plot without enlisting with the controller. After enrollment, all the commercials for ventures should bear a one of a kind task shrewd enlistment number gave by RERA.
How to file a complaint under RERA?
Here is your step-by-step guide to filing a complaint under RERA:
Step 1 – To file a complaint with the Authority, the complainant needs to visit the State’s official website. On the portal, search for the page of Complaint Registration.
Step 2 – Click on the complaint registration link. You will be taken to the complaint form where you are required to fill the details of the complaint.
Step 3 – While filing the complaint, homebuyers would be asked to submit their personal details including Name, Address, Contact details, and Project details. Complainants can also attach supporting documents.
Step 4 – Once the form is fully filled, the complainant would need to pay a sum of Rs 1,000 for filing the complaint or Rs 5,000 in case the complaint is filed before the Adjudicating Officer. Online payment mode is also available for completing the transaction.
When to file a RERA complaint?
A purchaser may record a complaint with the RERA Authority for any infringement or repudiation of the arrangements of the RERA Act by a manufacturer, designer, advertiser or realtor. Conditions under which a purchaser can record a RERA complaint include:
Delay in Possession: If a manufacturer delays conveyance of possession of the property, the purchaser can document a complaint against the developer to get quick conveyance of possession or get a full discount alongside interest.
False Advertisement: A complaint can be documented against the designer, advertiser, and even the endorsers if a purchaser was misdirected by false advertisements based on which he/she chose to store an aggregate with the advertiser.
Advance Payment: A manufacturer can request just upto 10% of the expense of the building, loft or plot as advance payment. On the off chance that a developer requests over 10%, the purchaser can document a complaint against the manufacturer.
Ill-advised Registration of a Project: It is basic that all projects be enlisted under RERA. On the off chance that a developer has sold or is trying to sell an unregistered project, the purchaser can document a complaint against the manufacturer.
No details about the Project: All details regarding the project including project plan, format, and government endorsements should be refreshed on the RERA site. One can record a complaint if a manufacturer or engineer doesn’t stick to this arrangement.
Structural Defects: in the event of any structural defects in the workmanship and quality of the administrations, the advertiser should repay the sum paid by the allottee. If not redressed, the purchaser can document a complaint.
Ownership Transfer: An advertiser cannot transfer dominant part rights to any outsider. In the event that he/she is found transferring greater part rights to an outsider without the assent of the two-third lion’s share of allottees, one can document a complaint.
Rights of Buyers Under the RERA Act
- Transparency: Transparency in area measurements, payment structure, project completion timelines, penalties for delay or legal issues will be covered under the provisions of the Act.
- Clarity in Area Measurements: The builder is required to quote the price of the carpet area and not other units like built-up, super built-up or PFS, etc. This ensures uniformity in price terms laid down by builders.
- Claim Refund: A buyer is eligible for claiming a full refund and interest post the due date. In case the buyer wants to wait it out, the builder has to pay 10% interest every month until handing over the property.
- Speedy Trial: Adjudicating mechanism to be put in place for expeditious hearing and disposal of appeals/complaints.
- Financial Discipline: Builders are asked to keep 70% of the funds in one escrow account for each project. If the builder is caught using the funds of one project for another, he can be penalized and jailed for a maximum of 3 years.
Act is applicable when the land size exceeds 500 sq.mtrs and units exceed 8.
No promoter shall advertise, market, book, sell or offer for sale for any real estate project in any planning area without first registering such project.
The act is applicable to all states excluding Jammu & Kashmir.
Section 29 of the Act provides that complaints should be disposed of as expeditiously as possible but not later than sixty days from the date of filing the same. However, where it cannot be disposed of during the said period, the Real Estate Regulatory Authority is required to record its reasons for the same.
The Act requires establishing an Appellate tribunal by the appropriate government within one year of the Act coming into force. So, RERA is the first body to approach in case of disputes and as per the set of rules, this body can establish the nature of the violation and prescribe the penalty/ punishment. Any person not satisfied by the decisions of the RERA or an adjudicating officer can file an appeal to the Appellate Tribunal. This set up will fast track the process of dispute settlement since it minimizes the involvement of the existing judicial system.
A person can appeal in High Court if he is not satisfied by the decision of the Appellate Tribunal however this isn’t allowed in cases where the decision was reached after consent of the disputing parties. The person has to file before the High Court within 60 days of receiving the decision.
Q. How can an aggrieved allotted lodge a complaint in the case of dispute with the real estate developer?
It is mandatory to set up an Appellate Tribunal by the state government within one year of the commencement of the Act. The aggrieved allottee is required to approach the RERA in the case of disputes and the RERA will pass the order of penalty or punishment by acknowledging the nature of the violation. If in case the allottee is not satisfied by the decisions of the RERA or an adjudicating officer then he/she can file an appeal to the Appellate Tribunal. This setup will speed up the process of dispute settlement because it minimizes the involvement of the existing judicial system. Further, if the allottee is not satisfied with the decision of the Appellate Tribunal then he/ she can appeal in the High court.