Introduction
RERA – Buying a home is a dream for many, but it often comes with challenges such as delays in possession, hidden costs, and unfulfilled promises. To protect home buyers from such issues, the Real Estate (Regulation and Development) Act, or RERA, was introduced in 2016. This act has brought a significant change in the Indian real estate sector by safeguarding buyers’ interests and ensuring greater transparency. In this article, we’ll explore the rights of home buyers under the RERA Act and understand how it empowers them.
What is the RERA Act?
The RERA Act, which stands for Real Estate (Regulation and Development) Act, was established to regulate the real estate sector and promote transparency, accountability, and efficiency. It was passed by the Indian Parliament in March 2016 and came into effect from May 1, 2017. The primary goal of this act is to ensure that home buyers are not misled and are treated fairly.
Key Objectives of the RERA Act
The RERA Act was introduced with the following key objectives:
- Promote Transparency: Builders must disclose all relevant information about the project, including the layout, construction stages, and completion timelines.
- Ensure Timely Delivery: Builders are obligated to complete projects within the stipulated timeline, failing which they are liable to pay penalties.
- Protect Home Buyers: The act provides buyers with various rights, such as the right to information, the right to timely possession, and the right to compensation.
Who Does RERA Apply To?
RERA is applicable to both residential and commercial projects across India, provided the project size exceeds 500 square meters or has more than eight apartments. The act covers both new and ongoing projects that have not received a completion certificate before the introduction of RERA.
Rights of Home Buyers Under RERA Act
The RERA Act grants several rights to home buyers, ensuring that they are adequately protected from fraudulent practices and project delays. Let’s delve into these rights in detail:
1. Right to Information
Under RERA, buyers have the right to be informed about every detail of the project, including:
- Project plan and layout
- Government approvals and legal status
- Builder’s profile and track record
- Construction stages and timeline
Builders must update this information on the RERA portal and keep it accessible to all registered home buyers.
2. Right to Timely Possession
RERA mandates that builders adhere to the deadlines mentioned in the agreement. If a builder fails to deliver the project on time, the buyer is entitled to seek compensation or a full refund along with interest.
3. Right to Seek Compensation
In case of any delay or discrepancies in the project, home buyers have the right to seek compensation. This includes a penalty for delayed possession or non-compliance with the promised specifications.
4. Right to a Refund
If a builder defaults on project timelines or fails to deliver as promised, buyers can request a full refund of the amount paid along with interest. This right empowers buyers to back out of an unsatisfactory deal without incurring any losses.
5. Right to File Complaints
RERA provides a grievance redressal mechanism through which buyers can file complaints against builders. Buyers can approach the Real Estate Regulatory Authority or the Appellate Tribunal for the resolution of disputes.
Transparency in Real Estate: The Role of RERA
RERA has mandated builders to disclose essential project details, such as the number of units, layout plans, and project completion timelines. Additionally, builders are required to use a standard format for sales agreements, ensuring that the buyer is not trapped by unfair terms.
Obligations of Builders Under RERA
Builders have certain obligations under the RERA Act:
- They must provide regular updates on the project’s status.
- Financial transactions must be transparent, and 70% of the funds collected must be used for project construction.
- Builders must adhere to the approved project plans and are not allowed to make changes without the buyer’s consent.
Also Read 1 RERA : Bane Or For Real Estate Sector
RERA Registration: A Must for Builders
All builders must register their projects under RERA before advertising or selling. This ensures that only legitimate projects are launched, providing buyers with an additional layer of security. Buyers can verify the registration status of a project on the official RERA portal.
What If a Project Is Delayed?
If a project is delayed, buyers have several options:
- Seek Compensation: Buyers can claim compensation for the delay based on the builder-buyer agreement.
- Request a Refund: Buyers can opt for a full refund with interest.
- Legal Action: Buyers can approach the RERA Authority or file a complaint for resolution.
RERA’s Impact on Real Estate Industry
Since its implementation, RERA has brought a significant change to the real estate industry. It has made the sector more transparent and accountable, instilling greater trust among buyers and encouraging more people to invest in property.
How to File a Complaint Under RERA
Filing a complaint under RERA is straightforward:
- Visit the RERA Portal: Go to the official RERA portal of the respective state.
- Fill the Complaint Form: Provide details such as your name, project information, and the nature of the complaint.
- Attach Necessary Documents: Include copies of your agreement, payment receipts, and any other relevant documents.
- Submit the Form: Once submitted, your complaint will be reviewed, and you will receive a response within a specified timeframe.
Benefits of RERA for Home Buyers
The RERA Act has empowered home buyers in several ways:
- It protects buyers from fraudulent practices and project delays.
- It provides a mechanism for grievance redressal.
- It ensures transparency and fair dealings in all real estate transactions.
Challenges and Limitations of RERA
Despite its many advantages, RERA is not without challenges. Some issues include:
- Lack of enforcement in some states
- Delays in complaint resolution
- Builders finding loopholes to delay project registration
Success Stories and Case Studies
There have been numerous success stories where RERA has helped home buyers receive compensation for delayed projects or refunds for non-compliance. For example, a group of buyers in Delhi successfully received compensation for a project delayed by more than two years.
Conclusion
The RERA Act has significantly transformed the real estate sector in India by protecting the rights of home buyers and promoting greater transparency and accountability. It has empowered buyers to make informed decisions and provided them with a reliable platform for addressing grievances.
FAQs
1. What is the significance of RERA in the real estate sector? RERA ensures transparency, accountability, and fair practices in real estate, protecting home buyers from fraudulent activities.
2. How does RERA benefit home buyers? RERA provides buyers with the right to information, timely possession, compensation, and a refund if the builder defaults.
3. What steps should a buyer take before purchasing a property? Verify the builder’s RERA registration, review project details on the RERA portal, and ensure the builder-buyer agreement is clear and fair.
4. Can a buyer seek compensation under RERA? Yes, buyers can seek compensation for project delays, non-compliance, or other grievances.
5. What happens if a builder fails to deliver the property on time? The buyer can either seek compensation or request a full refund with interest under RERA.
