RERA Act: Know Your Rights & Duties as Buyers
05 May 2017
Prasanth Menon
New Page 1
RERA Act or The Real Estate (Regulation Development)
Act, 2016 has come into effect from May 1, 2017, in 13 states and union territories. With
a hope to enable a transparent and efficient environment for both buyers and property
developers, government has passed the RERA Act. Through this act, the government aspires
to promote accountability, efficiency, transparency in the system and facilitate a
regulated real estate sector.
We will cover the RERA Act in details as a series of
articles covering various aspects of this act.
RERA Act Definition:
The Real Estate (Regulation And Development) Act is
an Act to establish the Real Estate Regulatory Authority for regulation and promotion of
the real estate sector and to ensure sale of plot, apartment or building, as the case may
be, or sale of real estate project, in an efficient and transparent manner and to protect
the interest of consumers in the real estate sector and to establish an adjudicating
mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to
hear appeals from the decisions, directions or orders of the Real Estate Regulatory
Authority and the adjudicating officer and for matters connected therewith or incidental
thereto.
The Real Estate (Regulation Development) Act has
various important provisions for the benefit of buyers.
Rights and Duties of Allottees/ Buyers:
(1) The allottee shall be entitled to obtain the
information relating to sanctioned plans, layout plans along with the specifications,
approved by the competent authority and such other information as provided in this Act or
the rules and regulations made thereunder or the agreement for sale signed with the
promoter.
(2) The allottee shall be entitled to know
stage-wise time schedule of completion of the project, including the provisions for water,
sanitation, electricity and other amenities and services as agreed to between the promoter
and the allottee in accordance with the terms and conditions of the agreement for sale.
(3) The allottee shall be entitled to claim the
possession of apartment, plot or building, as the case may be, and the association of
allottees shall be entitled to claim the possession of the common areas, as per the
declaration given by the promoter.
(4) The allottee shall be entitled to claim the
refund of amount paid along with interest at such rate as may be prescribed and
compensation in the manner as provided under this Act, from the promoter, if the promoter
fails to comply or is unable to give possession of the apartment, plot or building, as the
case may be, in accordance with the terms of agreement for sale or due to discontinuance
of his business as a developer on account of suspension or revocation of his registration
under the provisions of this Act or the rules or regulations made thereunder.
(5) The allottee shall be entitled to have the
necessary documents and plans, including that of common areas, after handing over the
physical possession of the apartment or plot or building as the case may be, by the
promoter.
(6) Every allottee, who has entered into an
agreement for sale to take an apartment, plot or building as the case may be, under
section 13, shall be responsible to make necessary payments in the manner and within the
time as specified in the said agreement for sale and shall pay at the proper time and
place, the share of the registration charges, municipal taxes, water and electricity
charges, maintenance charges, ground rent, and other charges, if any.
(7) The allottee shall be liable to pay interest, at
such rate as may be prescribed, for any delay in payment towards any amount or charges to
be paid under sub-section (6).
(8) The obligations of the allottee under
sub-section (6) and the liability towards interest under sub-section (7) may be reduced
when mutually agreed to between the promoter and such allottee.
(9) Every allottee of the apartment, plot or
building as the case may be, shall participate towards the formation of an association or
society or cooperative society of the allottees, or a federation of the same.
(10) Every allottee shall take physical possession
of the apartment, plot or building as the case may be, within a period of two months of
the occupancy certificate issued for the said apartment, plot or building, as the case may
be.
(11) Every allottee shall participate towards
registration of the conveyance deed of the apartment, plot or building, as the case may
be, as provided under sub-section (1) of section 17 of this Act which states that the
promoter shall execute a registered conveyance deed in favour of the allottee along with
the undivided proportionate title in the common areas to the association of the allottees
or the competent authority, as the case may be, and hand over the physical possession of
the plot, apartment of building, as the case may be, to the allottees and the common areas
to the association of the allottees or the competent authority, as the case may be, in a
real estate project, and the other title documents pertaining thereto within specified
period as per sanctioned plans as provided under the local laws.
Source: Indiacode.nic.in