How RERA Change Real Estate Business In India? Property Law
Since decades the real estate industry in India always aimed to favour and be positive for the developers and builders. The real estate in India was highly un – regulated and un – professional. Customers always tend to face the issues of possessions being delivered very late, high over – head costs, and cancelling of projects mid – way. Due to these un – ethical and un – professional methods customers and also builders tend to suffer loss. Many people have become the victims of being evacuated from a place where they have stayed for a really long time. This is done because they would have built their residence in a place which the government did not authorise. The people who bought the residence can file complaint but however these cases took years to find a solution.
To curb all these issues and problems the government of India drafted and enacted the REAL ESTATE REGULATORY ACT OF 2016. This was done to make sure that fair and non – complex dealings will take place between the buyers and sellers in the real estate industry. The Indian Government legislated this Act to put a full stop to all the malpractices and loopholes that can be found in the real estate dealings and also to end the unfair means used by developers and builders to cheat their clients. Many a times these builders and developers cheat easily by using very biased means of transactions. This affects the buyers greatly. To file a complaint or understand RERA better it is advised to hire the best property lawyers. Adv. Bindu Dubey is one of the finest property lawyers in Mumbai who works to help the buyers in case they are proven to have been cheated by the builders and developers.
IMPACT OF RERA:
The Real estate regulatory Act has shown various developments in the real estate industry. From making the builders answerable to their clients to updating the whole real estate sector this Act has changed the whole dynamics of the Real estate sector. Various unique ways in which the RERA has changed the real estate dealings are,
1. REGISTRATION AND RERA:
All the commercial and residential projects in this sector was mandated to be registered under the Real estate regulatory Act/Authority. This is mandatory if the land in question is more than five hundred square feet meters or a count of more than eight apartments. This Act has also mandated that the builders and developers share the blueprint and the details of the plan, layouts, locations etc. They will also have to give the very clear separation of the land, the garage or parking space. Only after this the developer and builder can get a sanction for the building. After this only they can advertise for the selling of the property.
2. UPDATES ON THE CONSTRUCTION:
The buyers should be updated by the builders about the process of the construction. They can also go online and look into the project they want to invest. With respect to the Real estate Regulatory Authority/Act the developers are mandated to upload the details of all their projects and as to how many houses or properties are sold till then and what is the price value etc. the developers should also upload all the documents and schedules that are done with respect to the legal part.
3. REGULARITY IN THE SALE AGREEMENT:
Before the enactment of RERA the buyers were at times forced to pay undefined fines which posed a huge headache to the customers. The promoters or builders will not be mandated to pay fine but the customers will pay. The sale agreement will have all the details even very small ones. The date and day for the acquiring of the flat, the interior works and other exterior works. All this will be disclosed so that later the customer will not be forced to pay any penalties.
4. PERFECT CALCULATION OF THE AREA:
The carpet area will be calculated as carpet area, Super built area and built – up area. This caused huge misunderstanding between the buyers and sellers. With respect to the RERA the developers should put forth the area of the apartment. Here, they should disclose the carpet area i.e., area between the said four walls and not the super built – up area.
5. LIABILITY PERIOD – FIVE YEARS:
As according to the RERA rules and regulations the builders and developers must look into all the defects that arise during the making or selling of the property. With respect to this the builder will compensate. The developers will compensate for the defects that occur within five years of selling the property also. In spite of finding the fault and the builder not taking responsibility then RERA complaint can be filed.
6. HANDOVER THE POSSESSION ON TIME:
If the developer or builder cannot give the possession on the mentioned time then they will be liable as mentioned under the RERA laws. If they homemaker is not able to handover the property then they will be forced to pay back the amount that they had collected if the buyer wants to withdraw. If they do not want to cancel the agreement then the seller will have to pay interest for all the extra months until he hands over the possession.
7. ALERATIONS AND SANCTIONS:
If the developer wants to change the plan of the property for which the buyer had already paid then he should get permission and approval from the buyer respectively. However, if the builder wants to change the entire lay out then he must get permission from two by third of the buyers of the place.
The complaints under RERA can be filed against any developer, promoter and seller. The respective state Real estate regulatory department will take it in their jurisdiction and try to solve the issue within sixty days. If the RERA’s decision is not satisfactory the aggrieved party can further file for complaint under appellate tribunal in the next sixty days. The parties can also approach the apex court or the high court.
Real estate regulatory Authority has definitely paved way for the better developments in the real estate sector. This has shown more transparency and accountability in this industry. Many people are still not aware of this RERA and the benefits they offer for common buyers and also for sellers. In spite of all these laws and advancements it is better to consult a lawyer with respect to property issues. Adv. Bindu Dubey is a well learnt property lawyer in Mumbai who has a very good knowledge of RERA and will help the clients get a clear idea about their property law issues.