The Real Estate (Regulation and Development) Act, 2016 (RERA) significantly impacts the process of property handover and possession in India. Here are the key aspects of how RERA influences these processes: Timely Handover of Possession: RERA mandates that developers must provide a clear timeline for the completion and handover of the property to buyers. This timeline is typically specified in the sale agreement and must be adhered to by the developer. Transparency in Project Information: Developers are required to register their projects with the Real Estate Regulatory Authority (RERA) before advertising or selling. This registration includes details about the project, such as layout plans, timelines, and the status of the project. This transparency helps buyers make informed decisions and hold developers accountable. Possession Certificates: RERA stipulates that builders must provide possession certificates upon completion of the project. This ensures that buyers receive proper documentation confirming their ownership and the legality of the property. Compensation for Delays: If a developer fails to deliver possession within the agreed timeline, RERA provides buyers with the right to seek compensation. The Act specifies that developers must compensate buyers for any delays in possession, which incentivizes timely delivery. Quality and Standards: RERA imposes standards for construction quality and safety. Builders must comply with these standards to ensure that the property is safe for occupancy at the time of handover. Escrow Accounts: Developers are required to maintain an escrow account for the project funds, ensuring that money received from buyers is utilized only for the specific project. This mechanism protects buyers' interests and helps ensure that funds are available for timely completion. Defects Liability Period: RERA mandates a defects liability period during which the builder is responsible for repairing any structural defects or poor workmanship in the property after handover. This period is typically set for five years from the date of possession. Consumer Grievance Redressal: RERA establishes a framework for addressing consumer grievances. Buyers can approach the Real Estate Regulatory Authority for complaints related to delayed possession or quality issues, ensuring a formal process for dispute resolution. Documentation Requirements: RERA emphasizes the need for proper documentation during the handover process. Buyers must receive essential documents, such as title deeds, occupancy certificates, and completion certificates, ensuring clarity in ownership. Enhanced Buyer Protection: Overall, RERA enhances buyer protection in the property handover process, ensuring that buyers have legal recourse in case of disputes, delays, or substandard construction. In summary, RERA impacts the process of property handover and possession by establishing clear timelines, ensuring transparency and accountability from developers, mandating compensation for delays, and providing mechanisms for grievance redressal. These measures aim to protect the interests of homebuyers and promote ethical practices within the real estate sector.

Dear client, With the enforcement of the Real Estate (Regulation and Development) Act, 2016 commonly known as RERA, there have been huge shifts in the property hand over and possession of houses in India. Another among the essential facets affected by RERA is that it has forced developers to be more time-bound while delivering the project and possessing it. Through implementing the RERA authority, developers are required to locate and register their respective projects of real estate and to reveal all the viable details of the project schedules to increase transparency and certainty to the buyers. In the case of any transfer of possession there are legal provisions which require developers to reverse the payment with buyers with interest for every day that passes, thus checking loafing. Further, as per RERA it is made obligatory that the possession of the property can be handed only when it is completed and fitted in the approved plans and the legal compliances. This eliminates instances where property developers complete half-baked or substandard buildings that do not even meet the recommendations of the law. Also it mandates that all developers secure an Occupancy Certificate (OC) for the projects before they can convey the property as a sale to the occupant, so that the building is safe and legal. It also gives buyers the right of withdrawal from the project in case the developer has not registered the buyer’s agreement in RERA or fails to hand over the possession of the apartment within the agreed time or fails to meet any promises made by him. Refund with interest is another claim that buyers can make, and enhancement of consumer rights in the case of default. Furthermore, growing numbers of developers are providing five-year warranty for post-handover works where defects in structure or quality workmanship is provided so that the new buyer can get a proper quality property. If you have any further queries please feel free to contact us . Thank you

Dear client, What is RERA? RERA, the Real Estate (Regulation and Development) Act, was passed by the Central Government on 10th March 2016, to address the various grievances of the homebuyers aiming to safeguard them from dishonest builders and channel investments in the real estate industry. The RERA Act stipulates that on its enforcement, every state must have a Real Estate Authority and Real Estate Appellate Tribunal to give proper redressal forums to the buyers. It further stipulates certain norms for the development of the real estate sector through which will enhance transparency and guarantee accountability in the developer dominating sector. From a quick look at the legislation itself, it can be seen that RERA was brought in with a good intent to promote the sector. It provides for certain specific rights which will benefit the flat-buyers and regulates the conduct of the players in the real estate business to even the playing field. It is certainly a forward-looking and much-needed legislation. Pre-RERA: NCLT and Consumer Forum (How the process worked before RERA) Before RERA, the homebuyers had only one option whenever they faced any problems that was to file a complaint against the developers in the Consumer Court requesting compensation for their investment. But almost in all the cases, the contracts or agreements made by the developers were in their own favor and in all these contracts or agreements, there was a clause of Arbitration which is time-consuming and costly. Apart from this, there were some more problems faced by the homebuyers before RERA, such as, Budget cap: The NCDRC only receives and accepts complaints of the properties valued over one crore. If any buyer has to file a complaint against any of the developers, for the property having a value less than one crore, they have to go to the district level authority first, win a case and then go to the state-level authority to claim justice before they can even approach the NCDRC. Last year, however, the Hon’ble Supreme Court in a landmark case had said that the homebuyers can form a group to make the sum amount of Rs 1 crore to directly go to the apex body, however, this also didn’t turn out to be so well for a majority of the homebuyers. Bureaucratic procedure: Also, until and unless a consumer files a complaint the NCDRC cannot initiate an action or an investigation into a matter. However, the position is not similar to the RERA Authority. Softer penalties: The NCDRC imposes softer penalties like fine on the defaulting developer and cannot impose a jail term (serious punishment). The RERA, on the other side, can impose a fine on a defaulting promoter or impose a jail term however it sees fit as per the crime. Broad provisions of RERA 1. Obligations on the builder after RERA The RERA makes it compulsory for all the real estate projects, where the land is over 500 square meters or 8 apartments for sale, to mandatorily register with the RERA Authority. For this, the developer has to disclose the names of promoters, project layout, land status, the status of statutory approvals, plan of development work, the draft of builder-buyer agreements, names and addresses of real estate agents, contractors, structural engineers and architects to the authority. All of this information has to be given on the RERA website and has to be regularly updated by the developer himself. A clear number of units sold and construction status has to be disclosed and the buyer will, henceforth, be aware and get information on the defaulting developers and the current projects going on. 2. Rights of the Buyers after RERA There are numerous rights propounded to the Buyers under the RERA Act. In case of false promises- If there is any disparity in the promises made by the builder and the property delivered, then the buyer has the choice to step away from the project with the full compensation along with the interest. In case of the defect after possession- Any structural defect in the construction revealed within 5 years after the possession of the building will be repaired by the builder within a maximum of 30 days without cost. In case of delay in possession- If the builder fails to complete the project on the due date of completion then the buyer has the option to withdraw from the project with the entitlement of full refund. The buyers also have an option to continue with the project where he is entitled to the compensation of the delay in handing over the project. In case of a defect in the title- In such a case, the buyer can claim compensation from the builder. The concept of a defect in the title is not barred by limitation. 3. Penalties for delayed possession Section 18 of the Act is of specific significance, as it directs defaulting builders to pay compensation for delay in handing over the possession of the building/property. Under Section 18 of the Act, if a constructor fails to hand over possession of the property as per the date mentioned in the Agreement of Sale, then the homebuyer has two options i.e. either to terminate the agreement and seek compensation or to continue with the project and claim reimbursement. If he decides to withdraw from the project, then the builder will be liable to return the entire amount paid for the property with interest. But on the other hand, if the homebuyer chooses to continue with the project, he can claim interest for every month of delay till the time the property is handed over to the buyer. The rate of interest is prescribed under the Real Estate Regulation Rules, which always vary from state to state. For example, Rule 18 of the Maharashtra Real Estate Rules prescribes a rate of interest equal to SBI MCLR (Marginal Cost of Lending Rate) plus two percent (2%). Since the current MCLR rate is 8.6% (varies from time to time), the penal interest rate would be 10.6%. How to file a RERA Complaint? Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, either with the Real Estate Regulatory Authority act or with the adjudicating officer. Such complaints may be filed against the promoters, allottees and/or real estate agents. Most state government rules have laid out the procedure and specific forms, in which such applications can be made. Step 1: Firstly, a consumer or any association of distressed buyers can approach the Real Estate Regulatory Authority (RERA) or the adjudicating or determining officer in charge to file a complaint. Step 2: The authority then decides the fees to be charged. Step 3: It is the complete discretion of the authority whether to direct the grievances to be heard and adjudged by a single bench of either the chairperson or any member of the authority. Step 4: After the appointment of an adjudicating officer, now the Appellate Tribunal holds an inquiry in an authorized manner, and gives the person a reasonable opportunity of being heard. Step 5: Lastly, the case has to be settled within 60 days from the date of receipt of the application. Redressal for claiming compensation would be dealt with by the adjudicating officer in charge as efficiently and speedily as possible. Further, all State-owned regulatory authorities have uploaded the RERA complaint form on the website. Also, you can file the RERA complaint online by going on the RERA website of the concerned state. It is also imperative that the buyers are aware of all their rights well before buying their flats. They are necessarily going to get much more information than was available before the advent of this Act. Buyers or owners who are aggrieved by any action of the promoters or agents can easily approach the real estate authorities for easy and effective redressal of their dispute. It is expected that these issues would be ironed out gradually. As the RERA Act is fairly new legislation, it is important that you understand the wide variety of rights that you can specifically assert. It is also imperative that you connect with the best lawyers in the field to assist you in asserting your rights under the RERA. Should you have any queries, please feel free to contact us!