What Should You Do When a Builder Fails to Meet the Deadline for Handing Over Your Apartment?

In the dynamic world of real estate, it is crucial to establish a regulatory framework that safeguards the interests of home buyers and promotes transparency in the industry. The Real Estate Regulatory Authority (RERA) was established in concert with the Real Estate (Regulation and Development) Act of 2016, with the primary objective of protecting home purchasers from unfair practices often employed by builders and developers. By enforcing strict guidelines and regulations, RERA aims to create a more equitable and secure environment for buyers across India.

Carpet Area: A Fair Basis for Property Transactions

One of the significant changes introduced by RERA is the emphasis on selling properties based on the carpet area instead of the super built-up area. The carpet area refers to the actual usable space within a property, excluding common areas such as lifts and corridors. This ensures that home buyers have a clear understanding of the usable space they are investing in and eliminates any ambiguity in property transactions. By standardizing the measurement criteria, RERA promotes transparency and empowers buyers to make well-informed decisions.

Timely Delivery and Resolution of Complaints

RERA places great importance on timely project completion and prompt resolution of buyer complaints. Under the Act, builders are legally bound to complete projects within the stipulated time frame promised to buyers. Failure to reach these deadlines can result in severe consequences for the builders, including substantial interest payments and even imprisonment. This provision acts as a strong deterrent against project delays, encouraging developers to honour their commitments and deliver properties on time.

RERA ensures that home buyers have an effective mechanism to address their grievances. If a buyer files a complaint with RERA, the authority is mandated to take appropriate action within 60 days. Similarly, builders are required to comply with the authority’s decisions within 45 days. This streamlined process provides buyers with a sense of security and confidence, knowing that their concerns will be addressed promptly and fairly.

Resolution of Buyer Issues: A Time-Bound Approach

Recognizing the significance of addressing buyer issues in a timely manner, RERA has outlined a clear framework for resolving problems faced by buyers after the purchase. According to the Act, builders must address any issues raised by buyers within 5 years of the purchase, and the resolution should be provided within 30 days. This provision ensures that builders take responsibility for rectifying any defects or deficiencies in the property promptly, enhancing the overall buyer experience and satisfaction.

Full Transparency: Empowering Buyers with Comprehensive Information

RERA emphasizes complete transparency in real estate dealings. Builders are obligated to provide buyers with comprehensive information about every aspect of the project they are constructing. This includes detailed disclosure of project specifications, floor plans, amenities, and any other relevant information. Additionally, builders are required to furnish a pamphlet containing all essential details and ensure that these updates are regularly reflected on their real estate websites. This commitment to transparency empowers buyers to make informed decisions based on accurate and reliable information.

Escrow Account: Safeguarding Buyer’s Investments

One of the significant benefits of RERA is the mandatory requirement for developers to deposit 70% of the funds received from purchasers into a separate escrow account. This account is managed by a third party, ensuring that the builder cannot utilize the buyer’s money for purposes other than the designated project. The funds can only be withdrawn by the builder during the construction stage and upon approval by chartered accountants and engineers. This safeguard effectively protects the buyer’s investment and minimizes the risk of financial mismanagement by builders.

Achieving Better Real Estate Practices with RERA

The Real Estate Regulatory Authority (RERA) has ushered in a new era of transparency & fairness in the Indian real estate sector. By establishing stringent guidelines and regulations, RERA ensures that home buyers are protected from unfair practices, delays, and misinformation. The Act promotes accountability among builders and developers, encouraging them to deliver projects on time and address buyer concerns promptly. Moreover, RERA’s emphasis on transparency and the mandatory deposit of funds in escrow accounts instils confidence in buyers, ensuring their investments are secure.

As a home buyer, it is essential to familiarize yourself with the provisions of RERA to exercise your rights and make informed decisions. By staying informed and aware, you can navigate the real estate landscape with confidence and secure your dream home.