What should you do if the builder fails to remedy the defect of the house

Last Updated at: May 29, 2020
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The RERA Acts seeks to protect the interests and rights of the buyers/allottees.  It makes it mandatory for the builder to fulfill several duties in this regard. The Act says that an arbitration clause included in a builder-buyer agreement cannot stop the buyer to seek redressal as per provisions mentioned in the RERA Act.

 

The process to approach RERA

While the Real Estate Act provides that all structural defects or deficiencies observed within five years of the grant of possession, have to be remedied by the builders at free of cost during situations where the builders or promoters refuse to bear any responsibility towards meeting their commitments. In this post, we will discuss on how you can approach the RERA of your state and file a complaint.

Who can you file complaints against?

The parties that can be implicated in a case made of deficiency of service and defect in the property handed over are quite broad. This means that apart from the property developer or builder, the promoters of the project, the real estate agents, brokers, and also the web-portals advertising the property on behalf of the promoters can be proceeded against. The promoter is responsible for the veracity of all information contained in the advertisement and the prospectus. In case of any loss sustained by any person due to false information contained therein, the promoter is liable to make good the loss sustained due to the same.

Accessing the State’s dedicated RERA website

In some states, an online complaint can be filed at the designated state website for real-estate. The Maharashtra RERA can be accessed at – https://maharera.mahaonline.gov.in/  , the Delhi RERA can be accessed at – http://dda.org.in/rera/  and the Tamil Nadu RERA can be accessed at http://www.tnrera.in/complaint.php

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Registering a Complaint

Under the Delhi RERA filing, complainants can register their complaint by clicking on the ‘Complaint Registration’ tab. It then requires filling details such as one’s email address, mobile number, and address. The reference number generated is sent on mail.

Payment Mechanism

Once the reference number is received, you will be directed to make payment. Payment varies from state to state and can be made electronically. In Maharashtra, the fee for filing complaint is 5000 rupees while in Delhi, it is 1000 rupees. All complaints received have to be adjudicated within sixty days of filing and hence, the erstwhile time-consuming process via courts has been replaced with an efficient body deciding disputes within the designated time. The Act also provides that complaints about interest or compensation be filed directly with the Adjudicating Officer under the Act.

Whether Consumer Forum can be approached?

Yes, instead of filing a complaint to RERA, one may be able to approach consumer forums (National, State or District). However, parallel complaints to both RERA and Consumer Forum are not allowed. Hence, you will have to choose one forum. However, the Real Estate Act provides that a consumer case can be withdrawn at a later stage and submitted to RERA for adjudication.

Can you additionally approach a Civil Court?

As per section 79 of the Act, civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which the RERA or the adjudicating officer or the Appellate Tribunal is empowered under the Real Estate Act to determine and hence, no civil suit can be filed.

Provision for Appeals

One may approach the Appellate Tribunal establishment in the State within 60 days of the order of RERA. Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court. This complaint also has to be disposed off within a period of 60 days.

The penalty imposed on Promoters and Real Estate Agents

A penalty of up to five percent of estimated costs of the project can be imposed. Further, there are penalty provisions for failure to comply with the orders of the tribunal. If the real estate agent fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulatively extend up to ten percent of the cost of the plot / apartment, for which the sale has been facilitated by him or with imprisonment for a term which may extend up to one year or with both.

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What should you do if the builder fails to remedy the defect of the house

1364
The RERA Acts seeks to protect the interests and rights of the buyers/allottees.  It makes it mandatory for the builder to fulfill several duties in this regard. The Act says that an arbitration clause included in a builder-buyer agreement cannot stop the buyer to seek redressal as per provisions mentioned in the RERA Act.

 

The process to approach RERA

While the Real Estate Act provides that all structural defects or deficiencies observed within five years of the grant of possession, have to be remedied by the builders at free of cost during situations where the builders or promoters refuse to bear any responsibility towards meeting their commitments. In this post, we will discuss on how you can approach the RERA of your state and file a complaint.

Who can you file complaints against?

The parties that can be implicated in a case made of deficiency of service and defect in the property handed over are quite broad. This means that apart from the property developer or builder, the promoters of the project, the real estate agents, brokers, and also the web-portals advertising the property on behalf of the promoters can be proceeded against. The promoter is responsible for the veracity of all information contained in the advertisement and the prospectus. In case of any loss sustained by any person due to false information contained therein, the promoter is liable to make good the loss sustained due to the same.

Accessing the State’s dedicated RERA website

In some states, an online complaint can be filed at the designated state website for real-estate. The Maharashtra RERA can be accessed at – https://maharera.mahaonline.gov.in/  , the Delhi RERA can be accessed at – http://dda.org.in/rera/  and the Tamil Nadu RERA can be accessed at http://www.tnrera.in/complaint.php

Get FREE legal advice now

Registering a Complaint

Under the Delhi RERA filing, complainants can register their complaint by clicking on the ‘Complaint Registration’ tab. It then requires filling details such as one’s email address, mobile number, and address. The reference number generated is sent on mail.

Payment Mechanism

Once the reference number is received, you will be directed to make payment. Payment varies from state to state and can be made electronically. In Maharashtra, the fee for filing complaint is 5000 rupees while in Delhi, it is 1000 rupees. All complaints received have to be adjudicated within sixty days of filing and hence, the erstwhile time-consuming process via courts has been replaced with an efficient body deciding disputes within the designated time. The Act also provides that complaints about interest or compensation be filed directly with the Adjudicating Officer under the Act.

Whether Consumer Forum can be approached?

Yes, instead of filing a complaint to RERA, one may be able to approach consumer forums (National, State or District). However, parallel complaints to both RERA and Consumer Forum are not allowed. Hence, you will have to choose one forum. However, the Real Estate Act provides that a consumer case can be withdrawn at a later stage and submitted to RERA for adjudication.

Can you additionally approach a Civil Court?

As per section 79 of the Act, civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which the RERA or the adjudicating officer or the Appellate Tribunal is empowered under the Real Estate Act to determine and hence, no civil suit can be filed.

Provision for Appeals

One may approach the Appellate Tribunal establishment in the State within 60 days of the order of RERA. Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court. This complaint also has to be disposed off within a period of 60 days.

The penalty imposed on Promoters and Real Estate Agents

A penalty of up to five percent of estimated costs of the project can be imposed. Further, there are penalty provisions for failure to comply with the orders of the tribunal. If the real estate agent fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulatively extend up to ten percent of the cost of the plot / apartment, for which the sale has been facilitated by him or with imprisonment for a term which may extend up to one year or with both.

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