RERA FAQs – The unknown answered

The chorus from the buyers association has been rising for states not to dilute central RERA. As a result, focus has shifted again to central RERA. However, there are still so many doubts pertaining to the act. Our staff had attended the RERA conference in February at PHD House, New Delhi and a number of clarifications came up during the same. We list below some of the most common and least answered questions on RERA (RERA FAQs) with their answers. In case we have missed answering a question that you might still have, feel free to drop a note to us and we shall help you.

Q. Will RERA cover resale customers as well?
Ans- Yes, it will be applicable to both first and resale customers.

Q. What is the RERA rule for parking?
Ans- Open car parking is considered as common area in Central RERA and hence open parking can’t be sold as per central RERA. However, State RERA may have a modified version of Common area. E.g. in UP, open parking is to be declared under common limited use area, thus allowing it to be sold. The clarity however is awaited with UP’s version of adopted central RERA awaited.

Q. What are the limitations on advertisements by promoter as part of RERA?
Ans- Promoter has to include RERA registration number as part of advertisement. This will help prospective buyer check all builder declarations at RERA website using the registration number.

Q. What type of advertisements are covered under RERA?
Ans- SMS, email or print media, electronic media advertisements

Q. What is the delay penalty to be paid to buyer by builder?
Ans- In accordance with the model form of agreement, if the Promoter fails to abide
by the time schedule for completing the project and handing over the flat/plot to
the Allottee, the Promoter agrees to pay to the Allottee, interest as specified in state act on monthly basis, till the handing over of the possession. The interest rate however shall be equal to interest rate demanded by promoter for payment defaults by Allottee.

Q. Where does the buyer need to file application?
Ans- Application to be filed online on website to be created by each state. But, may require visits to RERA office if documentation is not sufficient.

Q. How many members from RERA will look into the case?
Ans- A single bench of either the Chairperson or any Member of the Authority.

Q. How many days will RERA take to dispose off a case?
Ans- Complaints should be disposed off as
expeditiously as possible but not later than sixty days from the date of filing the same.
However, where it cannot be disposed of during the said period, the Real Estate
Regulatory Authority is required to record its reasons for the same.

Q. Can I go to civil court against builder atrocities?
Ans- No, if the nature of builder atrocity is covered under Act, Act bars buyers from going to civil court in first place.

Q. Can I go to consumer court against builder atrocities?
Ans- Yes. RERA does not bar going to consumer court as an alternative means of seeking compensation/justice. Complainant can however withdraw from consumer case at any time and file case with RERA.

Q. Can I file a complaint in RERA along with an ongoing consumer/civil court case?
Ans- No, you can only file a complaint with RERA provided the nature of complaint is not being pursued in a court of law. You need to withdraw the ongoing case to file complaint with RERA.

Q. Can the judgment of RERA be challenged?
Ans- Any person aggrieved by any direction or decision or order made by RERA or
by an adjudicating officer may file an appeal before the Appellate Tribunal within a period
of sixty days. Further, decision of Tribunal can be challenged in high court and later supreme court.

Q. Does the act mandate promoter to form association of Allottees?
Ans- It will be governed by local state law. However, if no local state law defines this, promoter shall ensure that it is formed within a period of three months of the majority of allottees having booked their plot or apartment. For example, UP state law mandates formation of association after 33% of project is delivered and infrastructure services are ready. Maharashtra law mandates formation after 51% allotments.

Q. Will RERA apply to projects with part completion?
Ans- If the builder has not got completion certificate for entire project, RERA will apply to the project and builder will have to register the project.

Q. What if I belong to an already delivered phase of the project? Will my complaints be addressed by RERA?
Ans- Since builder needs to register entire project, it needs to declare raw material and make of fittings used for finishing along with size of flat. If the complaint is related to quality/flat size and if 5 years (from cause of action i.e. delivery of flat) have still not passed , it will be addressed by RERA provided promoter has not solved the problem in stipulated time of 30 days after you informed the same to builder.

Q. My flat is not delivered and I signed agreement with builder 5 years back. How can I expect RERA to help me in this situation?
Ans- When builder registers project with RERA (builder has to register if it has not received completion certificate for complete project), builder has to declare the dates of delivery. Here, builder gets an option to give a future date for even flats that were to be delivered years back. So, if you are still waiting for flat, chances of RERA helping with delay penalty is less. However, if flat gets further delayed beyond declared date at time of RERA registration, you will be eligible to file complaint at RERA office.

Q. Can I complain at RERA for incomplete amenities and facilities?
Ans- With RERA registration, builder gets an opportunity to give revised date of completion
which should be commensurate with the amount of development completed. Each phase along with the development works shall have to completed and handed over to the allottee within the time frame defined by the promoter, during registration, for that phase of the project.

Q. How does RERA prevent builder from changing layout of project?
Ans- The Act puts an obligation on a promoter to obtain consent of each allottee, if he
wants to change the building plans for the phase that is registered. If a subsequent phase
has not been registered, the promoter can change the plans of the subsequent phases
without obtaining consent of the allottees from current / ongoing phases. However, if the
subsequent phases are also registered, consent of allottees, of the concerned phases,
would be needed as mentioned in section 14 of the Act.

Q. Other than the physical possession, what all is builder liable to provide to buyer at time of possession?
Ans- Allottee shall be provided with all plans and documents including that of common area. e.g. layout plan, building, electricity infrastructure, basement plan etc.

Q. Is there a binding on Allottee to take possessiopn when offered by builder?
Ans- Every buyer is bound to take possession within 2 months of builder receiving occupancy certificate for the said building/plot.

Q. Does RERA put a stop to Extra charges demanded by builder at the time of possession?
Ans-RERA allows builder to demand registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges in the manner and within the time as specified in the builder buyer agreement.

There are still some glaring issues with RERA that people shall know:

Glaring issues with RERA

  • Force majeure definition: In the builder buyer agreement, builder puts a clause where it absolves itselves in case of what it calls force majeure. However, no definition of Force majeure has been defined in RERA. This would give a scope for builder to put the delay excuse on reasons not necessarily beyond its control.
  • When builder registers project with RERA (builder has to register if it has not received completion certificate for complete project), builder has to declare the dates of delivery. Here, builder gets an option to give a future date for even flats that were to be delivered years back.
  • If a subsequent phase has not been registered, the promoter can change the plans of the subsequent phases without obtaining consent of the allottees from current / ongoing phases.
  • The act does not talk about final demand definition. The final demand is left uncorrelated with physical possession leaving scope for builder to misuse the term final demand/offer of possession.

Hope the above RERA FAQs cover all your questions. If you still have some doubts, feel free to consult.

Last updated: May 22, 2017 at 20:08 pm

8 thoughts on “RERA FAQs – The unknown answered

  • May 21, 2017 at 6:46 am
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    Any info about offer of possesion and final payment demand before obtaining part/full OC/CC?

    It is in effect from July 1 or nothing is finalise yet?

    We are expecting offer of possesion (final payment demand ) in a month even project is too far from completion , builder is in hurry to raise final demend , what should we do in that case?

    Reply
    • May 21, 2017 at 1:53 pm
      Permalink

      The act does not talk about final demand definition. The correlation of final demand is left uncorrelated with physical possession.
      However, it clearly states:
      1) Physical possession shall only be offered after occupancy certificate is received.
      2) Buyer is liable to take possession within 2 months of receiving occupancy certificate.
      You need to force builder to offer possession only after receiving occupancy certificate. We suggest not to do the payment till RERA comes to full force.

      Reply
      • May 22, 2017 at 8:33 am
        Permalink

        Thanks

        Can complaint to authority save us from paying final amount before OC?

        Reply
        • May 22, 2017 at 9:41 am
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          yes, you should do that. However, authority as well has sent no circular or public notice in this regards. It also instructs that physical possession cant be offered without OC. No documented word on offer of possession or final demand.

          Reply
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  • June 1, 2017 at 12:29 am
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    Update: UP RERA Revised version could be notified by end of this week.

    Reply
  • August 24, 2017 at 2:29 pm
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    I have booked a flat on 28.05.2017 and the carpet area agreed by the builder was 453 sq ft. However now in August while preparing the documents for registration the builder is saying that carpet area is 417 and 36 is EVBT. He is citing RERA provisions. Is there any provision in RERA by which the builder can reduce the carpet area arbitrarily?

    Reply
    • August 24, 2017 at 11:12 pm
      Permalink

      The relevant section of RERA states: “any additions and alterations in the sanctioned plans, layout plans and
      specifications and the nature of fixtures, fittings and amenities described therein in
      respect of the apartment, plot or building, as the case may be, which are agreed to be
      taken, without the previous consent of that person:
      Provided that the promoter may make such minor additions or alterations as may be
      required by the allottee, or such minor changes or alterations as may be necessary due to
      architectural and structural reasons duly recommended and verified by an authorised Architect
      or Engineer after proper declaration and intimation to the allottee.”

      So, the change shall have been done only post intimation to you and not at this late stage.

      Reply

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