The Real Estate (Regulatory and Development) Act of 2016 was enacted on March 26, 2016 and went into effect on May 1, 2016. Prior to this, there was no specific law regulating the Indian real estate industry, so it is considered a landmark law. RERA Lawyers in Gurgaon – NCR are skilled at resolving real estate-related disputes for both homebuyers and builders.
Land purchase, transfer, and registration are governed by real estate law. Foreign investment in the Indian real estate industry is permitted under the automatic route of the Foreign Direct Investment (FDI) policy, which means that no approval from the Government of India or the Reserve Bank of India is required; however, such investment must comply with the FDI policy. Residential lands, industrial lands, and commercial lands, among others, are subdivided into distinct categories in India. The owner of land in India must pay various taxes in accordance with state regulations, regardless of whether or not the land is located in a residential area.
The proprietors, on the other hand, attempt to transfer a portion of their responsibility to the lessee through contractual clauses; however, the landowner retains the primary responsibility. The regulations applicable to a real estate property vary based on the type/category of land and whether the property is under construction or available for occupancy. RERA Lawyers in Gurgaon – NCR are conversant with all the rules and regulations regulating RERA disputes, as well as the most recent decisions of the Appellate tribunal and the Supreme Court.
What is the 2016 RERA (Regulation and Development) Act?
A bill to establish the Real Estate Regulatory Authority to regulate and promote the real estate sector, to ensure the sale of a plot, flat or building, as applicable, or the sale of a real estate project, in an efficient and transparent manner, and to protect the interests of consumers in the real estate sector.
This institution functions as a special court to ensure transparency and fairness in the real estate industry. The RERA Act creates three distinct bodies: the RERA Authority, the RERA Adjudicating Officer, and the RERA Appellate Tribunal. Each act has its own purpose and legislative objective, and this act was enacted to achieve three main objectives:
Increase real estate investment (people will invest as a result of safety, justice, and openness).
Protect consumers and regulate builders.
The RERA statute includes a provision for the establishment of a Regulating Authority charged with adjudication and arbitration of real estate disputes. Additional discussion of case law and significant decisions from courts in Haryana, Uttar Pradesh, and Maharashtra. Additionally, case laws pertaining to issues such as the RERA Authority’s Jurisdiction and the Homebuyers’ Possession were examined. A RERA complaint may also be filed for any of the following reasons:
Possession Delay; False Advertising; Advance Payment; Incorrect Project Registration; Absence of Project Specifics; Structural Defects; Transfer of Ownership.
Why did RERA become law?
The primary objective of the RERA Act was to make Builders’ and Developers’ promises legally enforceable. Even though both the homebuyer and the developer signed the agreement, there was no supervision over how the possession dates and other promised dates were communicated to the homebuyers. No specialised authority existed to investigate the situation. Since the implementation of the Act and Authority, homebuyers have been able to engage in trustworthy transactions with promoters, and the general public has been able to obtain project information in accordance with the law. However, it is the buyer’s responsibility to undertake their own due diligence prior to investing in the project. The Authority was constituted as a result of the passage of the Act. Persons who are unhappy with the project or its transaction can register a complaint with this Authority. The quasi-judicial nature of RERA is advantageous. The Tribunal has the authority to interpret the law and grant redress, and it can conduct court-like actions, such as investigations.
Registration under the Act:
The following parties qualify for RERA registration:
Builders; Developers; Development Authorities/Public Bodies; State Cooperative Societies or Primitive Cooperative Housing Societies; Individuals with Power of Attorney.
If the registration procedure is not followed, the aggrieved allottee may file a complaint under Section 4 of the Act. Section 59 of the Act mandates the deliverance of accurate project information, and if the builder is found to be at fault, they must pay ten percent of the project’s expenses or face up to three years in prison. Regarding the validity of RERA registration, we can mention that it can be extended if a force majeure impedes the routine development of a real estate project.
The RERA Act provides three privileges for purchasers:
There will be no deviations from approved plans; there will be no further development by two-thirds of the owners; and the promoter will correct any defects in workmanship for five years after the property is acquired.
Act violations include:
If the constructor breaches the terms and conditions of the selling agreement, Section 18 of the Act grants the allottee an absolute and mandatory right. Moreover, if there is a violation of the given Act or the given agreement or the terms and conditions of that sale agreement, one can seek compensation for all other violations under the substantive provision of the Act or any rules and regulations made under the principal Act, i.e., RERA.
If there is a breach of the specified Act or a violation of the specified agreement or its terms and conditions, an allottee may seek compensation under Section 18(3) for all other violations under the substantive provision of the act or any other rules or regulations created under the main Act.
Maha RERA’s recent developments:
Due to COVID-19 and the mandated closure in the first wave of 2020, promoters were granted a six-month extension to comply with all applicable laws. Likewise, the second phase of the infection caused another system shutdown. As a result of the surge being considerably more powerful than the previous one, there was significant property damage and loss of life. A new order dated August 6, 2021, granting a 6-month extension, was issued. MahaRERA has declared a state of emergency from the 15th of April 2021 to the 14th of October 2021. However, projects committed prior to April 15, 2021, are not included in the aforementioned time frame. Similar extensions have been declared in Telangana and other states.
Is RERA biassed in favour of buyers?
There is a widespread misconception that RERA focuses solely on property purchasers and does not consider the promoter’s condition. As previously stated, the Real Estate Regulatory and Development Act (RERA) was created and implemented to simplify the real estate industry, not to benefit a specific entity. Even though the Act is more advantageous for property purchasers, it also provides promoters with previously unavailable assurances. In actuality, RERA has the power to punish homebuyers simultaneously.
In M/s. SMP Namrata Associates vs. Mrs. Suvarna Santosh Nazrekar, Special Leave Petition (CRL.) No. 5451 of 2017, the parties signed their agreement in August 2019. The property purchaser had caused a minor delay in his payment to the promoter. Although the Act makes no explicit mention of the promoter’s ability to file a complaint against the homebuyer, it is the homebuyer’s responsibility to make necessary payments in the manner and within the time specified in the agreement for sale, as well as to pay his or her share of the registration fees, municipal taxes, water and electricity charges, maintenance fees, ground rent, and other charges at the proper time and place. MahaRERA instructed the homebuyer to pay the penalty in the form of interest to the developer. This decision demonstrates that RERA is not biassed against homebuyers; in the future, RERA may impose stringent requirements on homebuyers.
DO YOU REQUIRE ASSISTANCE WITH YOUR REAL ESTATE LITIGATION FROM CHANIGARH RERA LAWYERS?
The RERA attorneys at The Law Code in Gurgaon – NCR are experts in real estate-related matters. Our leading RERA attorneys in Gurgaon – NCR provide advice on a variety of RERA-related matters. As competent legal counsels, we offer our finest services for drafting RERA petitions, responses, and other topics.
TLC, Gurgaon – NCR’s mission is to provide comprehensive solutions for all Real Estate Law issues in India. The seasoned solicitors at TLC, Gurgaon – NCR, provide clients with active litigation support in real estate law and assist with claims before a variety of forums. Our team consists of RERA solicitors and consultants with the specialised industry knowledge and resources required to fulfil all client requests.