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RERA Complaint: Impact of Filing Under RERA Act

RERA Complaint: Impact of Filing Under RERA Act

The Real Estate Regulation and Authority Act, 2016 (RERA), was established to protect home buyers while promoting real estate. The Rajya Sabha enacted this Indian Parliament Act proposal on 1 May 2016. This has allowed various states to develop their independent judicial formalities.

A complaint under RERA must be in the prescribed form as per the rules of the respective states. In respect of a project registered under RERA, a complaint may be filed within the prescribed time limit for violation or contravention of the provisions of the Act or violation of rules or regulations framed under RERA.

Impact of RERA Act Buyers

Following are some impacts of the RERA Act on buyers;

Security: As per RERA Act, at least 70% of the buyer's money will be kept in a separate escrow account. A separate escrow account will ensure that money collected for a particular real estate project is not diverted to other activities/projects undertaken by the builder/developer. Builders cannot ask for more than 10% of the property value as an advance before the sale agreement is signed.

Transparency: Builders must submit original documents for all projects undertaken by them. Builders should not make any changes in the plan/layout of the project without the consent of the buyers.

Fairness: RERA now instructs developers to sell properties based on mat area, not super built-up area. If the project is delayed, the buyers have the right to get back the entire money they have invested or they can choose to invest and receive a monthly investment on their money.

Quality: Up to 5 years from the date of purchase, the home buyer can raise any issue with the builder, which should be resolved by the builder within 30 days from the date of issue.

Authorization: A builder cannot advertise, sell, construct, invest, or book a plot without registering with the regulator. After registration, all investment advertisements shall have a unique project-wise registration number provided by RERA.

Filing a Complaint under RERA Act

Here is the procedure for filing a complaint under RERA:

Step 1 – To file a complaint with the authority, the complainant must visit the official website of the state. On the portal, find the complaint registration page.

Step 2 – Click on the link for Complaint Registration. You will be taken to the complaint form where you need to fill in the complaint details.

Step 3 – While filing a complaint, home buyers will be asked to submit their details including name, address, contact details, and project details. The complainant can also attach supporting documents.

Step 4 - Once the form is filled, the complainant will have to pay Rs 1,000 for filing the complaint or Rs 5,000 for filing the complaint before the Adjudication Officer. An online payment mode is also available to complete the transaction.

When to File RERA Complaint?

A buyer can complain to the RERA authority about the violation or contravention of the provisions of the RERA Act by the builder, developer, promoter, or real estate agent. Following are the conditions under which a buyer can file a RERA complaint which includes;

  • Delay in Possession: If a builder delays possession of the property, the buyer can file a complaint against the builder for immediate possession or a full refund with interest.
  • False Advertisement: A complaint can be filed against the developer, promoter, and promoters if a buyer is cheated by a false advertisement based on which he decides to deposit the amount with the promoter.
  • Advance Payment: The builder can ask for only up to 10% of the cost of the building, apartment, or plot as advance payment. If a builder want for more than 10%, the buyer can make a complaint against the builder..
  • Improper registration of projects: Registration of all projects under RERA is imperative. If a builder tries to sell or sells a project that hasn't been registered, the buyer can file a complaint against the builder..
  • No details about the project: All details regarding the project including the project plan, layout, and government approvals need to be updated on the RERA website. A builder or developer can file a complaint if they do not comply with this provision.
  • Structural Defects: In case of structural defects in workmanship and quality of services, the Promoter will have to pay the allotted amount. If compensation is not received, the buyer can file a complaint.
  • Transfer of ownership: The promoter cannot transfer the majority rights to any third party. A person can file a complaint if he/she is found transferring the majority rights to a third party without the consent of a two-thirds majority of the allottees.

Buyers' Rights under RERA Act

Following is the right issued under RERA Act:

Transparency - Transparency will be included under the provisions of the Act regarding area measurement, payment structure, the time limit for project completion, and penalties for delay or legal issues.

The clarity in area measurements - The builder must quote the cost of the mat area and not other units like built-up, super built-up, or PFS. This ensures uniformity in price terms offered by builders.

Claim Refund - Buyer is eligible to claim a full refund and interest after the due date. If the buyer wants to wait for it, the builder will have to pay 10% interest every month until the property is handed over.

Speedy Trial - A decision-making mechanism for expeditious hearing and disposal of appeals/complaints.

Financial Discipline - Builders are asked to keep 70% of the funds for each project in an escrow account. If a builder is caught using funds from one project for another project, he can be fined and jailed for a maximum of 3 years.


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