The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate the real estate sector, promote transparency, and protect the rights of homebuyers. Under RERA, all real estate projects and agents must be registered with the respective state’s Real Estate Regulatory Authority (RERA) to ensure fair transactions and timely project completion.
1. Project Registration – All residential and commercial real estate projects exceeding 500 sq. meters or having more than eight apartments must be registered under RERA.
2. Buyer Protection – Buyers have the right to timely possession and full information about the project.
3. Escrow Account – Builders must deposit 70% of project funds in an escrow account to prevent fund misuse.
4. Penalty for Delays – Developers must compensate buyers if possession is delayed beyond the agreed date.
5. Mandatory Approvals – Builders must obtain all necessary approvals before advertising or selling a project.
6. Defect Liability Period – The builder is responsible for any structural defects in the property for 5 years after possession.
7. Transparency in Advertising – False promises in advertisements can lead to legal action under RERA.
8. Filing a Complaint – Buyers can file complaints with the State RERA Authority for grievances related to delays, misrepresentation, or contract breaches.
1. Project Delays – Non-completion of projects within the promised timeline.
2. Possession Issues – Non-delivery of property as per the agreed specifications.
3. Refund and Compensation – Buyers seeking refunds for delayed projects or false promises.
4. Quality Defects – Construction quality issues and structural defects in delivered properties.
5. Unauthorized Modifications – Changes in project layout or specifications without buyer consent.
6. Hidden Charges – Extra charges levied by builders that were not disclosed at the time of agreement.
7. Title Disputes – Issues related to clear ownership and legal title of the property.
8. Non-Registration of Project – Projects being sold without RERA registration.
9. Non-Adherence to Agreement – Builders failing to deliver amenities or features as promised.
Prepare the Complaint
• Gather all necessary documents, including the builder-buyer agreement, payment receipts, advertisements, and communication records.
• Draft the complaint clearly stating the issue and the relief sought.
2. File the Complaint with State RERA Authority
• Visit the official State RERA website or submit a physical application at the RERA office.
• Pay the prescribed fee for filing the complaint.
• Submit the complaint along with all supporting documents.
3. Hearing by RERA Authority
• The authority reviews the complaint and issues a notice to the builder.
• Both parties present their case before the RERA authority.
• The authority passes an order based on the facts and evidence.
4. Appeal to RERA Appellate Tribunal
• If dissatisfied with the order, an appeal can be filed before the RERA Appellate Tribunal within 60 days of the RERA authority’s decision.
5. Further Appeals
• If the dispute remains unresolved, appeals can be made to the High Court and Supreme Court under exceptional circumstances.
1. Delay in Possession – Developers must refund the full amount to the buyer with interest.
2. False Advertising – Up to 10% of the project cost as a fine.
3. Non-Registration of Project – A fine up to 10% of the project cost or imprisonment up to 3 years.
4. Non-Compliance with RERA Orders – Additional penalties or imprisonment.
5. Failure to Refund Money – Interest and penalty charges imposed on the developer.
Vakil360 provides expert legal assistance for homebuyers and real estate investors facing issues with builders. Our services include:
• Legal Consultation – Understanding your rights and legal options under RERA.
• Filing RERA Complaints – Drafting and submitting complaints to the State RERA Authority.
• Representation in RERA Hearings – Representing clients before the RERA Authority and Appellate Tribunal.
• Refund and Compensation Claims – Ensuring buyers receive their rightful compensation for delays and fraud.
• Property Title Verification – Checking the legal validity of property titles before purchase.
• Legal Notices to Builders – Sending notices for non-compliance and violation of agreements.
