WHAT IS RERA – HOW TO REGISTRED COMPLAINT UNDER RERA
RERA stands for “Real Estate Regulatory Authority”
RERA is an act for regulation and promotion of the real estate sector to ensure the sale of apartment, plot or building in an efficient and transparent manner. The Act aims to protect the interest of consumers.It was enacted by the Parliament in May,2016 and the act has come into force with all its 92 sections from 1st May, 2017 across India.
The implementation of RERA is expected to bring relief to the homebuyers as builders will be accountable for the timely delivery of the projects and to protect buyers from fraud sellers. The developers would also gain from the increased confidence of the consumers in a regulated environment.
It is mandatory for the developers to get all approvals from various government agencies before launching a project and disclose all the information on the website that the respective state RERA regulatory authority will setup.
Regal estate agents will be provided a registration number by the regulator which they have to mention in every property sale. This will help in eliminating the possibility of misleading the purchaser. The authority has wide ranging powers to impose penalties and imprisonment of agent in case of violation of law.
The Real Estate (Regulation and Development) Act of 2016 defines projects that come under its preview
- Every project where the area of land proposed to be developed exceed s 500 sq. meters or the number of apartment proposed to be developed exceeds 8, inclusive of all the phases
- Where the promoter has received completion certificate for a real estate project prior to the commencement of the law:
- Any project other than that where renovation or repair or re-development is undertaken, provided that this does not involve marketing, advertising, delling or new allotment of any unit, plot or building, as the case maybe, in that real estate project.
Benefits for home buyers under RERA
When you invest in a project registered with RERA, your rights are protected as a buyer. Bringing transparency in the sector, RERA mandates:
- That the developer has to deliver what has been promised. The builder will also have to disclose every detail about the project like the number of union, carpet area of each unit etc.
- The developer will have to transfer 70% money received from homebuyers into an escrow account; this will ensure that the money meant for your project is not siphoned off to other projects.
- Homebuyers will pay only for the carpet area and builders cannot charge for the super built-up area, as was the practice until now.
- Developers will be able to sell their projects only after necessary clearances.
- The amenities and specifications that a developer promises have to be present in the project. He cannot make any changes to the plan without the written consent of buyers.
6. The builder will have to provide for any structural defect in the building for five years from the time possession is given.
- In case of project delay, the developer will pay the same interest to the consumer as the EMI being paid by the consumer to the bank.
- In case of any deficiency in the project, the buyer can contact the developer in writing within one year of taking possession for after sales service.
It is mandatory for developers to quote their RERA registration number in all their promotions, which means they cannot advertise a project unless it is registered with RERA. You must therefore check that the project you are interested to buy has been advertising in media or not.
On the RERA portals, the details of commercial and residential projects are mentioned. A developer has to list all the details and updates about the project, number of units, floors and how many are sold or unsold every three months. Commercial or residential projects with eight units and more come under the ambit of RERA.
All new and current projects fall under RERA. The authority ensures that a Developer delivers what he promised to a buyer as mentioned in the sale agreements, including adherence to the completion schedule.
How can you make the best use of “RERA”?
The Real Estate (Regulation and Development) Act, 2016 (RERA) has instilled confidence in home buyers to enter the market and buy a house. RERA empowers home buyers and help them choose the right project, builder and track the status of construction.
Home buyers can check the status of RERA registered projects, file complaints for delay in possession, report unregistered projects and claim delay compensation as well. There are many things RERA has made it possible for home buyers, the real estate sector become transparent because of RERA.
How to file a complaint under “RERA”
Filing a complaint under RERA against errant developers is now convenient and simple. Complainants are required to pay a sum to the respective state authority for registering a complaint under the Act.
Here’s a step-by-step guide on how to file a complaint under RERA.
As per the Real Estate (Regulation and Development) Act (RERA), complaints ca n be registered under section 31 of the act. Complaints can be filed against developers, builder, and agents with the regulatory authority or the adjudicating officer.
Note:
All complaints filed under RERA must be in the form prescribed under RERA norms.
By launching the official RERA websites, the various State governments have made the process of filing a complaint under RERA more simple and hassle free.
Any homebuyer can file RERA complaints online on the website by filling up a form and paying the registration fees.
File RERA complaints: Step-by-Step guide
- To file a complaint with the Authority, the complainant needs to visit the state official website, on the portal, search for the page of complaint
registration. For instance, on the Karnataka RERA website, homebuyers can file their complaints by clicking on the link placed under “COMPLAINT REGISTRATION” next to “AGENT REGISTRATION”
- Click on the complaint registration link. You will be taken to the complaint form where you are required to fill the details of the complaint.
- While filing the complaint, homebuyers would be asked to submit their personal details including name, address, contact details and project details. Complainants can also attach supporting documents.
- Once the form is fully filled, the complainant would need to pay a sum of Rs. 1000/- for filing the complaint or Rs. 5000/- in the case of filing complaints before adjudicating officer, online payment mode is also available for completing the transaction.
How complaints are resolved in “RERA”
Consumers can file complaint against developer or real estate agents under section 31 of RERA Act.
The complaints can be filed online or offline either through the RERA portals or by visiting the respective RERA authority of that particular state.
Consumers are often in a dilemma whether to approach RERA, National consumer Disputes Redressal Commission (NCDRC) OR National company law Tribunal (NCLT) to file their real estate complaints.
“If a person is seeking refund for their property, the first and foremost thing is to file a complaint in RERA, there are other forums available but we have to see where I will get instant relief hence, RERA can be approached for addressing such grievances.
An individual buyer or investor either himself or through a legal representative can file an online complaint against the developer by filling the prescribed form that is provided in the respective RERA portals, details to be filled in the form may include name of the complaint, complaint against, address, flat number, amount paid till date etc. after filling in the details, relevant documents are uploaded in format.
“RERA offers faster resolution than any other forum and is also an Act specificaly designed for real estate. Once your file a complaint, within a month or 45 days action is initiated by RERA. It takes maximum of five to six dates to decide the case and conclude it.
“Once your complaint is registered, RERA will inform you the date of appearing before the authority through a text or an email. The period between these dates may vary from two or three months, complaints can be disposed within the first date or may take several months, depending on the case.
Process of Resolution
Once your complaint is registered under RERA, a ‘complaint number’ will be issued by the authority which will be used for further reference till your complaint is disposed.
RERA often issues notice to the developer within a week after the complaint is filed. This notice carries the complaint number, through which the complaint file can be previewed by the developer on the RERA website. Complainants are also informed that a notice has been issued to the developer regarding their complaints.
Both the developer and the consumer are then assigned a date within 30 –
45 days form the date of complained registered to initiate the case under RERA
Filing of Documents
Two sets of documents are submitted by the complainant on the first date of hearing.
Documents required to prove your claim include complaint copy, bulder-buyer agreement, receipts of amount paid, tripartite agreement copy etc. the entire set of documents should be submitted to the authority and identical set has to be provided to the opposite council (developer) and one set should be kept with the complainant.
Reply from the Developer
Developer is given an opportunity to file his reply against the complaint. This reply should be presented before the authority in the presence of complainant, “Majority of developers file a reply, but there are a few notorious people who change their lawyer or do something else and the it goes on to the next date, the authority then gives them a last opportunity to file their reply.
Argument on the Reply Filed
Reply from the developer is scrutinised and argued on the next date in the presence of the authority and complainant.
“If the reply filed by the developer is extensive for arguments, you need time to read it, so another date can be given. This gives an opportunity to the complainant to go through it or file a rejoinder.
Further arguments are heard for final orders. “It may take anywhere between 15-30 days for the order to be release, this order is also posted online on the RERA Portal.
According to the RERA Act, once an order is passed, it needs to be executed within a fixed time period. If the developer fails to honour the order then there are provisions for monetary penalties and imprisonment as well.
After RERA issues an order for compensation or refund, the execution of the order can also be addressed by the complainant, if the developer fails to abide by the order, an execution complaint can be filed online after 45 days of the order passed by RERA and the necessary action can be taken