It\nhas been over a year since the Real Estate (Regulation and Development) Act\ncame into effect. The Real Estate Regulatory Authority (RERA), across states,\nhave set into motion the process for achieving transparency and dynamic changes\nin the real estate sphere for the welfare of homebuyers. There are still many\nbuyers who are pondering over scenarios they might possibly find themselves in,\nwith regards to any legal action against erring developers and so on; while\nsome seek information about their fundamental rights under the act.<\/p>\n\n\n\n
Real Estate Expert presents a comprehensive guide.<\/p>\n\n\n\n
What are the rights and\nduties of a buyer?<\/strong><\/p>\n\n\n\n An\nallottee, as per Section 2(d), includes a person who acquires the said\napartment or plot through transfer or sale, but does not include a person to\nwhom such plot\/apartment is given on rent. Under Section 19 of the Real Estate\nAct, allottees are given the following rights and duties. A buyer or allottee\nwill be entitled to:<\/p>\n\n\n\n \u2726\nObtain the information\nrelating to sanctioned plans, layout plans along with the specifications,\napproved by the competent authority and such other information.<\/p>\n\n\n\n \u2726\nKnow stage-wise time\nschedule of completion of the project, including the provisions for water,\nsanitation, electricity and other amenities.<\/p>\n\n\n\n \u2726\nClaim the possession of\napartment, plot or building. The association of allottees shall be entitled to\nclaim the possession of the common areas.<\/p>\n\n\n\n \u2726\nClaim the refund of amount\npaid along with interest at such rate as may be prescribed and compensation in\nthe manner as provided under the Act.<\/p>\n\n\n\n \u2726\nHave the necessary documents\nand plans, including that of common areas, after handing over the physical\npossession of the unit.<\/p>\n\n\n\n A buyer will be responsible\nfor:<\/strong><\/p>\n\n\n\n \u2726\nMaking necessary payments,\nas specified in the said agreement for sale, at the proper time and place, and\nshall pay the share of the registration charges, municipal taxes, water and\nelectricity charges, maintenance charges, ground rent, and other charges, if\nany.<\/p>\n\n\n\n \u2726\nPaying interest, at such\nrate as may be prescribed, for any delay in payment. The interest may be\nreduced if mutually agreed by promoter and allottee.<\/p>\n\n\n\n \u2726 participating towards the formation of an\nassociation or society or cooperative society of allottees.<\/p>\n\n\n\n \u2726 Taking physical possession of the\nproperty (apartment, plot or building) within two months of receiving the\noccupancy certificate.<\/p>\n\n\n\n \u2726\nparticipating in\nregistration of the conveyance deed of property.<\/p>\n\n\n\n What to do in case of\ndisputes with a developer?<\/strong><\/p>\n\n\n\n An\naggrieved buyer can approach the RERA which will prescribe penalty or\npunishment by acknowledging the nature of the violation. He or she can appeal\nto The Real Estate Appellate Tribunal, set up by the state government if\naggrieved by the decision of RERA. Further, the buyer can appeal in the High\ncourt within 60 days of receiving the decision if unhappy with the decision of\nthe Appellate Tribunal.<\/p>\n\n\n\n According\nto Section 79 of the Act, civil courts are barred from entertaining disputes in\nrespect of matters which the Authority or the adjudicating officer or the\nAppellate Tribunal is empowered under the Act to determine. However, consumer\nforums (National, State or District) will also be authorised to redress buyers\u2019\ngrievances. Section 71 proviso permits the complainant to withdraw his\ncomplaint as regards matters under sections 12, 14, 18 and 19, from the\nconsumer forum and file it with the adjudicating officer appointed under the\nAct.<\/p>\n\n\n\n When can a buyer demand a\nrefund?<\/strong><\/p>\n\n\n\n It\nis to be noted that under the provisions of RERA, a buyer can demand penalty\nfrom developer if the project has been delayed. However, developers would be\ngiven one more chance to set a reasonable timeline for the delivery. If the\npromoter fails to comply yet again, then he will have to pay the penalties, as\nspecified in the law. Buyers can demand refund of payment done for a property\nif the promoter:<\/p>\n\n\n\n \u2726\nFails to complete or is\nunable to give possession of an apartment, plot or building, in accordance with\nthe terms of the sale agreement.<\/p>\n\n\n\n \u2726\nFails to complete or is\nunable to give possession of an apartment, plot or building due to\ndiscontinuance of his business as a developer on account of suspension or\nrevocation of the registration under this Act or for any other reason.<\/p>\n\n\n\n When should a buyer pay for\nthe property?<\/strong><\/p>\n\n\n\n The\npayment is based on the builder-buyer agreement. However, promoters cannot ask\nfor more than 10 per cent of the project cost before property registration.<\/p>\n\n\n\n What are the procedures for\nfiling a complaint against a developer?<\/strong><\/p>\n\n\n\n Association\nof allottees or any voluntary consumer association registered under any law can\napproach the Real Estate Regulatory Authority or the adjudicating officer to\nfile a complaint. A complaint filed under Section 31 of RERA against promoters,\nallottees or agents, is required to be in the form prescribed under the\nrespective states\u2019 rules. To initiate a case, the aggrieved party must file an\napplication with necessary details like complainant name, filing complaint\nagainst – promoter or agent, relief sought, property information, etc. Some\nstates allow online filing of application.<\/p>\n\n\n\n The\nfees for filing the complaint, decided by the authority, varies from state to\nstate. The authority may direct that specific matters or issues be heard and\ndecided by a single Bench of either the chairperson or any member of the\nauthority. It will appoint an adjudicating officer for holding an inquiry in\nthe prescribed manner, after giving any person concerned a reasonable\nopportunity of being heard. RERA assures buyers of transparency and fast disposal\nof cases, and consumers can claim compensation for delayed projects. The\napplication for adjudging compensation will be dealt by the adjudicating\nofficer as expeditiously as possible. The case has to be settled within 60 days\nfrom the date of receipt of the application.<\/p>\n\n\n\n What happens in case of\nviolation of provisions of the Act or the authority or Appellate Tribunal\norders?<\/strong><\/p>\n\n\n\n \u2726\na promoter, who fails to\ncomply with the orders of the Appellate Tribunal, will be liable to a penalty\nunder section 64 for every day of default, which may extend up to ten percent\nof the estimated project cost or imprisonment for up to three years, or both.<\/p>\n\n\n\n \u2726\nan allottee, who fails to\ncomply with the orders of the Appellate Tribunal, will be liable to a penalty\nunder section 68 for every day of default, which may extend up to ten percent\nof the plot\/apartment cost or imprisonment for up to one year, or both.<\/p>\n\n\n\n \u2726\nthe penalty for violating\nthe provisions of the Act is charged for the period during which such default\ncontinues. It may cumulatively extend up to five per cent of the plot,\napartment or building cost as determined by the concerned state authority.<\/p>\n\n\n\n \u2726\nImprisonment awarded under\nthe Act can be compounded if authorities decide to do so. The fine payable in\nlieu of imprisonment needs cannot be more than the highest limit of fine\npayable for that offence.<\/p>\n\n\n\n \u2726\nIf the provisions of the\nprevious builder-buyer agreement violate the provisions of the current Act,\nboth developers and buyers will have to follow the new rules. The rate of interest\nfor violations would be the same as prescribed in the new Act for both parties.\nHowever, if they can follow the agreement provisions would if they are not in\ndirect violation.<\/p>\n\n\n\n