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The Indian real estate sector has long battled challenges such as delayed project delivery, unfinished construction, and false claims, which can cause financial and emotional pain for property buyers. To address these issues and protect consumers’ interests, the Real Estate (Regulation and Development) Act, 2016 was enacted. This Act aims to increase transparency, accountability, and confidence in real estate transactions by explicitly specifying the rights and duties of allottees.
This article attempts to provide a comprehensive knowledge of allottees’ rights and duties under the RERA Act, allowing homeowners to make educated and legally sound decisions.
RERA was established in 2016 to promote transparency and confidence in real estate transactions. It requires developers and builders to register their projects with a specific RERA authority before advertising or selling units. The Act requires developers to disclose all project facts, including layout designs, approvals, construction timelines, technical specifications, and legal rights to the site.
RERA also established regulatory authorities in each state to ensure compliance and resolve disputes. These authorities ensure that developers meet deadlines, produce what was promised, and do not participate in unfair tactics. Most significantly, it offers buyers an organised venue for raising complaints and receiving prompt resolution.
In 2016, the Government of India introduced the RERA Act to overhaul the real estate sector. The Act was implemented nationwide on May 1, 2016, and has since undergone significant changes. Initiatives have been implemented to improve transparency and safeguard the interests of allottees. The RERA Act requires developers to give transparent information about their projects. The RERA Act aims to reduce corruption and injustice among allottees in the real estate market by establishing a robust framework.
According to Section 2(d) of the RERA Act, an allottee is any individual to whom a plot, flat or building has been allocated, sold (whether freehold or leasehold), or otherwise transferred by the promoter. This also applies to anyone who later owns the property through sale or transfer, but not to anyone who has rented it.
Allottees are provided with numerous protections under the Act, ensuring that they are well-informed and treated equitably.
Allottees have the right to acquire all project details, including sanctioned plans, layout maps, permissions, and the terms of the selling agreement. This allows them to better comprehend the legality and extent of the development.
Buyers might request a phased plan for building and utility delivery, such as water, power, and sanitation. This encourages accountability and timely delivery.
Buyers have the right to possession of their unit and access to common areas under the terms of the sale agreement. Developers are legally required to guarantee that all conditions are met before transferring possession.
If the project is halted, delayed forever, or the developer’s registration is cancelled, the allottee is entitled to a full return, including interest. This protects buyers from financial losses resulting from project failures.
After taking possession, buyers have the right to access all essential legal documentation, including layout drawings for common areas.This ensures clarity and reduces the possibility of future legal problems.
Along with their rights, allottees have various responsibilities under RERA, including maintaining legal and financial discipline.
Buyers must pay all dues, including registration fees, municipal taxes, utility bills, and maintenance charges, as specified in the sales contract. Payment delays may limit the developer’s capacity to fulfil promised services.
If the buyer fails to make payments on time, they must pay interest at the rate set by RERA. This discourages defaults and allows developers to manage their finances more efficiently.
After the project is completed, allottees must actively engage in the formation of a buyers’ club, cooperative, or association. This collective entity is in charge of maintaining shared facilities and preserving the interests of all members.
Buyers must take possession of the property within two months of receiving the occupancy or completion certificate. Failure to do so may jeopardise their legal rights and result in disputes.
The buyer is responsible for working with the developer to formally register the property. This ensures that all ownership rights are properly documented and legally enforceable.
The RERA Act is critical in fostering a fair and transparent relationship between developers and buyers by explicitly defining their rights and responsibilities. It provides buyers with legal entitlements such as prompt possession, refunds, and access to project information, while also requiring them to meet obligations such as timely payments and active involvement in housing societies.
Before purchasing real estate, buyers should seek legal advice to assure compliance and safeguard their interests. For legal advice, contact Adv. Abdul Mulla at www.asmlegalservices and www.lifeandlaw.in.
Adv. Abdul Mulla (Mob. No. 937 007 2022) is a seasoned legal professional with over 18 years of experience in advocacy, specializing in diverse areas of law, including Real Estate and Property Law, Matrimonial and Divorce Matters, Litigation and Dispute Resolution, and Will and Succession Planning. read more….
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