The real estate sector in India is the most prominent and rapidly growing sector. With the rapid growth, many malpractices are followed, or there are many instances of prospective customers getting duped or suffering loss by the builders or agents’ malpractices. So, to regulate this Real Estate Regulatory Authority (RERA), the ongoing practices in the real estate sector were established and supervised.
This article is mainly concerned with the Maharashtra Real Estate Regulatory Authority (MahaRERA) and how RERA lawyers in Mumbai can provide aid in filing complaints against the builder.
What are RERA and its features?
RERA is the real estate regulatory authority keeping a check on the activities of the persons concerned with the real estate sector. RERA was established by introducing the Real estate (regulation and development) Act, 2016.
Each state and union territory in India has their real estate regulatory authority managing the affairs concerned with real estate sectors in the particular state.
Developers or builders must register the projects with RERA and obtain a valid registration certificate in failure to which RERA would not hold any liability for compensation to be made to the customers or buyers in case of any loss.
There are some salient features of RERA. Let’s discuss:-
- RERA establishment
The RERA is established for every state and union territory and is concerned with keeping a check on the real estate sector of that particular state and UT.
- Fast track dispute resolution
RERA is an establishment providing a fast-track dispute resolution mechanism.
- Mandatory registration
Registering all the projects with the Real Estate Regulatory Authority is mandatory, and no real estate property is authorized to get sold without RERA registration.
The registration application can get rejected because the project does not meet RERA guidelines. Even the registration can get cancelled on receiving authentic complaints.
- Project details online
Another significant feature of RERA is that its website can easily access project details. The commencement certificate, layout plan, RERA registration certificate, and project status can get accessed from the website.
- Approval or rejection period
A request for project registration can be approved or rejected within 30 days of application. Beyond this time, it is considered approved.
- Project Advance
The promoters are not allowed to accept more than a 10% advance from buyers concerning a particular project. The promoter has to enter into a builder-buyer agreement, and after that, he is allowed to accept advances from buyers.
- A separate account for the project development
The promoter should deposit 70% of the project amount into a separate account, including land and construction costs. Promoters can withdraw the amount after getting certified by an engineer, architect & CA.
- Insurance policy
All promoters must get all the real estate projects injured.
- Transfer of project
A promoter can transfer rights & liabilities to the third party with the consent of 2/3rd the buyers, including the approval of the real estate regulatory authority.
- Interest on default
Buyer and promoter have equal interest upon default by either party concerning that particular project.
- Promoter compensation
The promoter has to compensate for any loss in the project’s land title in case of any delay or any other loss caused by the acts of the promoters.
- RERA Complaints
An aggrieved person can file a complaint against a promoter, developer or real estate agent in case of violation of rules and provisions of the Real estate Act.
- RERA powers
RERA is authorized to restrain the actions of the buyer, promoter or agent during the inquiry.
- Appellate Tribunal
If a person is unsatisfied with the orders passed by the authority, he can appeal with the Appellate Tribunal of that state.
- Punishment for failure to registration
Suppose a promoter fails to register a project. In that case, the promoter will be penalised with 10 percent of the estimated cost of that real estate project and fails to comply with RERA’s direction or continues the volition. Then he will be punished with a maximum imprisonment of three years and a further ten per cent of the penalty amount.
- Civil courts
As per the RERA Act, the civil courts are not allowed to entertain the cases coming under RERA or its Appellate Tribunal. No court is authorised to grant an injunction under this act.
Who can file a complaint to RERA?
Section 31 of the Real estate (regulation and development) Act, 2016 states the person who can file a complaint to RERA.
It states, “Any aggrieved person is entitled to file a complaint with RERA or the adjudicating officer appointed by the government of India for such purpose for contravention of the Act’s provisions or the rules and regulations made thereunder. The complaint can be filed against any promoter, allottee or real estate agent.
The term aggrieved person will also include the association of allottees or any voluntary consumer association registered under any law for the time being.
If the person is not satisfied with the decision made by RERA or its officer, he is authorised to file an appeal before the RERA Appellate Tribunal within 60 days.
A person may also file an appeal to High Court within 60 days from the date the appellate tribunal decides if he is unsatisfied with the tribunal’s decision.
A person can himself or through RERA lawyers in Mumbai file a complaint to the Maharashtra real estate regulatory authority; a person needs to bear complaint fees of Rs. 5000.
For example:- If a person wants to file a complaint against a builder in Mumbai for causing a delay in the delivery of possession of a RERA-approved project. He has to seek RERA lawyers in Mumbai who deals with such laws concerning real sectors to file a complaint with MahaRERA.
How RERA lawyers in Mumbai can help
Real estate lawyers in Mumbai can:-
- Advise you on compliance, stamp duty & law applicability
- It helps in guiding through registration and other statutory approvals
- They also handle land acquisition cases, buying & selling of property, leases & Taxation
- Provide advice on Joint venture development
- Provide Advice on project development
- Making lease and sale deeds
- Aid in the legal documentation of property buying/selling/lease
- Assist in Tenant-landlord issues
- Helps in complying with land use regulations
- Making Finance and mortgage agreements
- Building, development and construction contracts
- Complying with Project and retail property transactions
- Building, Development and Construction Contracts
- Other Tax disputes (GST and other)
- Projects and retail property transactions.
Keeping in mind the topic of seeking professional help, RERA lawyers in Mumbai are not only involved with filing complaints but also help the builders get their projects registered with RERA.
The authority ensures transparency, accuracy, and accountability between builders and buyers in Real Estate transactions and applies to existing and new projects.
Complaints can be made to RERA through the online mode, and anyone can file a complaint if they possess the actual knowledge of real estate laws and draft an accurate statement without hiring a lawyer. It is always good to buy RERA-approved and certified properties to avoid losses in case of any contingency.