Law Tarazoo

RERA – Basic things to know about

What is RERA?

RERA is a much awaited legislation introduced by the Government to regulate the sale of houses by the builders and protect the interest of flat purchasers.

RERA is the acronym (short-form) for Real Estate(Regulation and Development) Act, 2016.

Purpose of the Act:

It is a law passed by the Central government to regulate the sale of flats by the builders/developers to the purchasers and to provide quick remedies for the grievances against the builder/developer.

RERA also intends to:

  • Standardize and streamline the process of buying flats.
  • Clearly lay out the duties and liabilities of the Builder/developer and the punishments for breaching the same.
  • Bring clarity to the rights available with the flat purchaser.
  • Ensure that the flat purchasers get the possession of the flats in promised time.

Why is RERA necessary?

Before RERA, the sale of flats by the builders/developers was not regulated, and as a result many builders/developers duped the flat purchasers in many ways like delaying the possession of the flats endlessly, promising to sell fancy flats which are far from reality and many other instances where the interest of the buyers/flat purchasers was in jeopardy.

Not only that, the remedy available to the buyer/flat purchaser under the existing laws was such that it would take endless time for the buyer/flat purchaser to get compensation from Courts against the malpractices of the builder/flat purchaser.

How can RERA help?

Under RERA:

  • Builders cannot delay the project.
  • Builders cannot charge for the common areas (as was the practice earlier).
  • Your flat will come with a warranty for a specific period.
  • Builder can’t use your money to invest somewhere else.

Frequently Asked Questions:

Is it applicable to residential, commercial projects and agreements of leave and license?

Yes, RERA is applicable to residential and commercial projects but is not applicable for leave and license agreements.

What penalties can a builder face, if he fails to adhere to provisions under RERA?

If the Builder/Developer violates the provisions of RERA he has to pay 10% of the project cost and in some instances will also have to face imprisonment for 3 years.

Is RERA applicable to existing projects or future projects only?

The ongoing projects which have not received Occupation Certificate till 1st May,2017 shall be subject to RERA and therefore the home buyers can seek protection under it.

What are the rights of the flat purchaser under RERA?

The prospective flat purchaser can seek the following information from the builders:

  • The sanctioned layout plan of the project.
  • Stage wise time line schedule for project completion.
  • Facilities to be provided by the builder.

After receiving possession of the flat, the purchaser can seek the following documents from the builder:

  • All the documents relating the sanctioned plan of the project.
  • Documents relating to common areas and amenities provided by the builder.
  • In case the timeline is not met, the purchaser can claim compensation/refund of the delay in giving possession.

Where can an aggrieved purchaser seek redressal under RERA?

The purchaser shall have to send a notice to the defaulting developer/builder. And in case the builder/developer fails to redress the complaint of the purchaser, the purchaser can approach the Tribunal (a Court, different from the existing courts) which is formed under RERA, with the complaint against the developer.

The tribunal shall take action against the developer on the basis of the complaint made by the purchaser.

How can Law Tarazoo help?

We can guide you with the legal procedure for the action to be taken against the developer under RERA, including sending Legal notice and connecting you with a Lawyer in your area.

×

Hello!

Click one of our representatives below to chat on WhatsApp or send us an email to experts@lawtarazoo.com

× How can we help you?