Section 2(d) of the RERA Act says that an allottee or homebuyer is someone who buys or transfers a piece of property, but not someone who rents it.
If a project is delayed, a buyer may seek a penalty from the developer under RERA provisions. Developers, on the other hand, would be given one more chance to set a reasonable delivery timeline. If the promoter fails to comply yet again, he will be subject to the statutory penalties.
A developer is required to open an escrow account with a government-approved bank. An escrow account is a bank account into which an account holder deposits funds on a regular basis and authorizes the bank to withdraw funds to pay for certain fixed obligations. According to Section 4(2)(l)(D)of RERA Act, seventy percent of the amount realized by a promoter from buyers shall be deposited in a ‘separate account’ to be maintained in a scheduled bank to cover the cost of construction and the cost of land, and shall be used only for that purpose.
A complaint can be filed with the Real Estate Regulatory Authority or the adjudicating officer by an allottee association or a voluntary consumer association. A complaint filed under Section 31 of RERA against promoters, allottees, or agents must follow the state laws. Complainant name, complaint against promoter or agent, relief sought property information, etc. Some states accept applications online. The authority determines the filing fee, which varies by state. If the authority decides that a single Bench of the chairperson or any member of the authority hears and decides certain proceedings, it will appoint an adjudicating officer to conduct an inquiry in accordance with the rules. RERA guarantees purchasers transparency and quick case resolution, and customers can sue for project delays. As soon as feasible, the adjudicating officer will deal with the adjudication compensation request. The case must be resolved within 60 days of the application’s receipt.
Allottees are granted the following rights and obligations under Section 19 of the Real Estate Act. A buyer or allottee shall be entitled to the following:
- Obtain information on sanctioned plans, layout plans, and specifications that have been approved by the competent authorities, as well as any other information.
- Determine the project’s stage-by-stage completion timetable, including provisions for water, sanitation, electricity, and other facilities.
- Claim possession of an apartment, a plot of land, or a building. The allottees’ association shall have the right to claim possession of the common areas. Reclaim the amount paid, plus interest at the statutory rate and compensation in accordance with the Act’s provisions. After transferring physical possession of the apartment, have all relevant documentation and plans, including those for common areas.
A buyer is responsible for:
- Making all required payments, as specified in the said agreement for sale, on time and in the proper amount, and for paying his or her share of registration fees, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, as applicable.
- Paying interest, at the stipulated rate, on any late payment. The promoter and allottee may agree to cut the interest rate. Assisting in the formation of an allottees’ organization, society, or cooperative society.
- Within two months of receiving the occupancy certificate, taking physical possession of the property (apartment, land, or building).
- Taking part in the registration of property conveyance deeds.
Any violation of the RERA Act’s provisions is punishable. The penalty for each subsequent period of default may total up to 5% of the cost of the plot, apartment, or building, as determined by your respective state authority. Homebuyers would be subject to a penalty for each day of default, which could total up to 10% of the cost of the plot/apartment, or to imprisonment for up to one year, or to both.
A Completion Certificate (CC) shows that a building has been erected in accordance with the city’s standards and master plan. This document contains all relevant project information such as building materials, height, and plan, as well as green belt provisions. This paperwork is required to secure power and water connections. It is issued following a comprehensive inspection of the premises by the local authorities. A temporary Completion Certificate is also available. Authorities issue a six-month interim certificate when the developer has minor works left. After six months, the developer is entitled to a final CC. Occupation Certificate, on the other hand, signals that there is no violation of building construction norms, and thus, the structure is safe for occupants. An OC is given by a competent certifying authority and allows occupants to enter any structure. These are usually municipal companies.
Yes, it is critical to initially record and track these dates, as delays may impose additional costs on the buyer. Additionally, it is critical to verify the start date, as developers may ignore this information and therefore continue postponing the project.