RERA Complaint - An Overview
Real Estate describes the built environment without which the businesses and society cannot function. The residential and commercial sub-divisions of the Real estate sector is covered under the Real Estate (Regulation & Development) Act, 2016. The aim of RERA Act is to protect the rights and interests of the consumers and to promote uniformity and standardization of business practices and transactions in the Real Estate sector. It also attempts to balance the interest of buyers and promoters by imposing certain duties on both of them and seeks to establish symmetry of information between buyer and promoter.
A RERA complaint can be filed by any home buyer against the builder, developer or agent if the buyer’s rights are violated or any provisions of the Act are contravened.
Real Estate Regulatory Authority
The Real Estate Act provides for establishment of a specialized body in each State for resolution of disputes related to Real Estate. The aggrieved party, either the promoter or the real estate agent or the Allottees (Buyers) can file a RERA complaint online for contravention of the provisions of the Act or for the non-performance of obligations mentioned under the Act before the Authority. Once the contravention is proved, the Authority has the power to impose penalty upon the defaulter.
Why file a RERA complaint? Benefits
- The buyers need not undergo a lengthy judicial proceeding before the consumer forum for raising a complaint against builder.
- The adjudication process is in place for dealing with the RERA complaint against builders.
- Transparency in dealing with RERA complaints and the RERA complaint status is provided in the dedicated website for each state.
- RERA complaints against Builders ensures compensation by Promoters for delayed possession.
- RERA complaints have speedy and expeditious disposal.
When can a RERA complaint be filed?
The Real Estate Act imposes many obligations both on the promoter as well as the buyer. On breach of such obligation, the Authority can, either suo moto (on his own) or on a complaint made in this behalf initiate proceedings against the defaulter.
Obligations of the Promoter
- Not advertise/market/book/sell Real Estate Project unless it is registered with the Real Estate Regulatory Authority.
- Not give any false information in the prospectus/advertisement/notice regarding the Real Estate Project.
- Hand over the possession of the developed project on the promised date.
- At the time of booking, make available to the allottees the information regarding the sanctioned plans and layouts plans as approved by the competent authority, the stage wise time schedule for the completion of the project, the provisions for civic infrastructure etc.
- Be responsible to obtain the completion and occupancy certificate for the Project.
- Be responsible to provide and maintain the essential services on a reasonable charge till the association of allottees take over the maintenance of the project.
- Be responsible to pay all the outgoing charges from the amount which he has received from the allottees for the above said purpose till he transfers the physical possession to them.
- Be liable to the structural defects and any other defects in the workmanship quality or the provision of services or to the breach of obligation provided under the agreement of sale, if it is brought to the notice of the promoter by the allottee within five years from the handing over of the possession. He has to rectify the defect within thirty days, free of charge.
Obligations of the Buyer
The Promoter shall:
- It is mandatory for a buyer to make timely payments to the real estate developer as per the agreement for sale. He will also have to pay his share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges and any other services.
- Once the occupancy certificate is issued by the real estate developer, the buyer is required to take possession within two months’ time.
- If the buyer is unable to make timely payments for his purchase, he is required to pay interest at a prescribed rate.
- It is compulsory for a buyer to exhibit active participation in the formation of an association, a cooperative society or any federation of consumers.
- A buyer shall participate towards registration of the conveyance deed of the unit.
Relief to Home buyers
Generally, two kinds of relief are granted to the Home Buyers when a RERA complaint is filed, viz.
- Compensation for the loss suffered by the home buyers
- Return of the entire investment to the home buyers
Apart from this, the promoter is also punished with financial penalties and even imprisonment in certain cases.
How to file a RERA complaint with the Authority?
Each state has a separate mechanism for the filing of complaints with the Authority. Currently, we are functioning in Chennai (TN), Bangalore (Karnataka), Mumbai (Maharashtra), Delhi & Haryana. Our team will take care of the procedure based on the place where the property is located.
Documents required for filing a complaint
The complaint before the Real Estate Regulatory must be made with the following details and documents:
- Name of the complainant with complete address, email id and phone number
- Name of the builder/promoter
- Facts to be disclosed in brief
- Documents as proof such as the agreements entered/mail transactions/letters exchanged/ Legal Notices sent
- Payment of INR 1,000 as a fee in all states except Maharashtra and Goa where it is INR 5,000
Timeline for resolving a complaint
The general timeline for resolving a RERA complaint is 60 days as per the Act. However, in special circumstances, the adjudicating officer can record the reason for adjournment and extend the time.
- Experts on Board
- Free Consultation
- Cost Efficient
- Continuous Support
FAQs on RERA Accounting
Though the Act itself was passed and notified in the Gazette in March 2016, the implementation will be done in a phased manner. Each state has to further adopt the Act and form the RERA for implementation. States can also notify any existing agency as the regulatory authority. Specific provisions may take a little longer to implement but certain compliances on the part of Builders / Developers may become mandatory almost immediately.
RERA covers all residential and commercial projects, including shops, offices and buildings.
As per section 3(1) of the Act, ongoing / existing projects, which have not received occupation or completion certificate, shall be covered under the Act. Builders / Developers must register such projects under RERA, within three months of implementation of the Act.
Any person aggrieved by the decisions of the RERA or an adjudicating officer can appeal to the Appellate Tribunal.
A person can appeal in the High Court if he is aggrieved by the decision of the Appellate Tribunal however this isn’t allowed in cases where the decision was reached after consent of the disputing parties.
The person has to approach High Court within 60 days of receiving the decision.