RERA Act 2016 Unlocked | By Nikhil Pattani

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016 with 61 of 92 sections notified. The remaining provisions came into force on 1 May 2017. The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.

Buyers or allottees have the following rights and duties under Section 19 of Chapter 5 of the RERA Act, 2016:

Right to information: The homebuyer has the right to obtain information about the project, including sanctioned blueprints, layout plans, the RERA registration number, and specifications recognized by the competent authorities.

Right to know the completion schedule: The home buyer has a right to know the project’s progress, including provisions for water, sanitation, power, and other amenities and services indicated in the sales contract.

Possession rights: If all essential requirements have been completed and the requisite remuneration has been paid, the home buyer has the right to take ownership of the property, including the shared spaces.

Right to claim refund: If the builder fails to comply or is unable to give possession of the property in accordance with the terms of the agreement for sale, or if his business as a developer is discontinued due to suspension or revocation of his registration, the home buyer has the right to file a complaint under RERA and seek a refund of the amount paid, plus interest and compensation, from the builder. Developers, on the other hand, will be allowed one more opportunity to create an acceptable delivery schedule before being penalized. If a buyer is unhappy with RERA’s judgment, he or she can appeal it to the Appellate Tribunal.

Right to documents: The home buyer has the right to all essential paperwork and designs, including those for shared spaces, after the developer gives over physical possession of the property.

Defective property right: Within 5 years of possession, the builder must rectify any structural or quality faults at no additional expense to the customer.