If you’re planning to buy a property, it’s important to know about RERA – the Real Estate Regulation and Development Act. This act, which came into effect in 2016, was introduced to safeguard the interests of homebuyers and promote transparency in the real estate sector. In recent times, the number of RERA complaints has been on the rise. Let’s dive deeper into what RERA is, why it’s important, and what you need to know about the increasing number of complaints.
Introduction to RERA
The Real Estate Regulation and Development Act, 2016, was enacted to regulate the real estate sector and promote transparency in real estate transactions. It is applicable to residential as well as commercial projects, and it mandates that developers register their projects with RERA before selling or advertising them. RERA aims to protect homebuyers from unscrupulous developers and promote fair practices in the real estate industry.
Importance of RERA in protecting homebuyers’ rights
The real estate sector in India has traditionally been plagued by unethical practices, such as project delays, false promises, and hidden charges. RERA was introduced to address these issues and protect homebuyers’ rights. The act ensures that developers are accountable for their actions and provides homebuyers with a transparent process for purchasing property. Under RERA, developers are required to disclose all project details, including the timeline for completion and any potential delays. They are also required to deposit 70% of the project funds in a separate bank account, which can only be used for project-related expenses. RERA also provides a platform for homebuyers to raise their grievances and seek redressal.
Overview of the rising number of RERA complaints
Despite the safeguards provided by RERA, the number of complaints filed by homebuyers has been on the rise. According to data from the Ministry of Housing and Urban Affairs, the number of RERA complaints increased by 43% from 2018 to 2019. In 2020, during the COVID-19 pandemic, the number of complaints decreased due to the lockdown and subsequent restrictions. However, as the economy has started to recover, the number of complaints has again started to rise.
Common reasons for RERA complaints
The most common reasons for RERA complaints include project delays, incomplete projects, deviations from approved plans, and non-refund of booking amounts. Developers have also been found to make false promises, misrepresent project details, and violate RERA regulations. Homebuyers have also raised concerns about the quality of construction, the use of sub-standard materials, and the lack of amenities promised by developers.
The process of filing a RERA complaint
If you have a complaint against a developer, the first step is to approach the developer and try to resolve the issue amicably. If that doesn’t work, you can file a complaint with the RERA authority in your state. You will need to provide details of the project, the developer, and the nature of your complaint. The RERA authority will investigate the matter and issue a notice to the developer. If the developer fails to respond or provide a satisfactory resolution, the matter may be referred to the RERA tribunal.
Rights and remedies available to homebuyers under RERA
RERA provides several rights and remedies to homebuyers. For instance, developers are required to rectify any structural defects in the property for a period of five years after possession. They are also required to pay compensation to homebuyers for any delays in delivering the project. In case of fraud or misrepresentation, homebuyers can seek a refund of their booking amount, along with interest and compensation. RERA also provides for the appointment
Role of RERA authorities in resolving complaints
RERA authorities play a crucial role in resolving complaints raised by homebuyers. They investigate the matter, issue notices to developers, and facilitate a resolution. If the issue is not resolved at the RERA authority level, it may be referred to the RERA tribunal.
Ways to avoid RERA disputes when buying a property
To avoid RERA disputes, homebuyers should do their due diligence before investing in a property. They should verify the developer’s credentials, check for any legal disputes, and carefully read the project documents. Homebuyers should also ensure that the project is registered with RERA and that the developer has obtained all necessary approvals.
In conclusion, RERA has been instrumental in protecting the interests of homebuyers and promoting transparency in the real estate sector. While the rising number of complaints is a cause for concern, homebuyers can use the safeguards provided by RERA to seek redressal. By following due diligence and taking necessary precautions, homebuyers can avoid disputes and make informed decisions when buying a property.