Real estate sector has been booming for the past few years; buyers not only buy the house for residential purposes, but they also buy the house as an investment or as a second home for enjoying the weekend. Due to this increasing demand in this sector, there is a hike in fraudulent activity; builders make false advertisements about the property project and make fake promises about the amenities and services provided by them with the project. Builders are negligent in completing the construction of the project as well as making delays in possession of the property. Also, the problem of breach of agreement is also increasing in this sector; builders do not complete the terms that they agreed to in the sales agreement of the property about giving possession of the property or providing the amenities or services.
To regulate all the fraudulent activity in the real estate sector, the government introduced the Real Estate (Regulations and development) Act in the year 2016. The government introduced this act for the purpose of safeguarding the rights of the buyers. Because of the fraudulent activity of the builders, the buyers suffer huge financial losses and face mental trauma. As per this act, builders must register their project under the respective state authority of the RERA. Once the registration is completed , only after that can builders start advertising the project. Builders need to make true advertisements about the project.
Builders must make a webpage on the RERA website to show all the details of the project, and builders also need to update the project information on a quarterly basis on the RERA website. Without negligence, builders must complete the construction work and give the possession of the property to the buyers in the decided timeline, or builders can’t make any fake promises about any amenities or services in the sales agreement. if the builder is unable to complete those promises or mention terms, then it counts as a breach of agreement under this act.
Why did you choose Right To Law Firm for handling your legal matters?
As a buyer if you facing the issue, like negligence from builders about the completion and possession of the property or builders refusing to provide the amenities or service they promised to provide in the sale agreement. Then, you have the right to claim the compensation from the builders as per the provisions of this act. Understanding the provisions of the RERA Act and proving fraudulent activity of the builder is not an elementary task; this crucialness makes the process more time-consuming. Due to these reasons, you need professional help; you need to hire an expert RERA lawyer. Buyers can choose the Right To Law Firm as a legal partner in this process. The Right To Law firm is a one-stop solution for all the activity in this process, like professionally coordinating with builders or filing claims for compensation or for buyers’ efficient representation in front of the RERA Authority to get them favorable results in the case.
The buyers or complainants who live in Noida or nearby places in Noida can visit our office and discuss their RERA matters with our expert RERA lawyers, who have years of experience handling RERA cases. Our firm’s lawyers’ years of experience will definitely help the clients to regulate their issues accurately and in a time-saving manner. Clients can also book online appointments with our lawyers to discuss their case and understand the related terms of the RERA.
Legal remedies available for builder negligence, substandard amenities and breach of agreement?
Builder Negligence
When the builders do not complete the construction of the property in the decided timeline or make delays in possession of the property. Or using low-quality materials or equipment for the construction of the property. Or builders make promises to the buyers at the time of selling the property, like making fake advertisements or mentioning fraudulent information in the notice of the property. Or not providing the safety features in the property that can harm the safety of the buyers of the property, safety features like not providing safety nets and fencing in the buildings. This whole issue counts as builder negligence in the real estate sector.
Legal remedies for builder negligence are that buyers can claim compensation under the RERA Act. Negligence from the builder towards completing the terms and activity as per the mention in the sales agreement of the property harms the rights of the buyers. Builder negligence caused the buyers to face huge financial losses and mental trauma. To compensate for this, the RERA Act provided provisions under which the buyers can claim monetary compensation from the builders.
Substandard Amenities
There are some amenities that the builder needs to compulsorily provide to the buyers of the property, like a power backup, lifts, proper water supply, security services, parking space, and waste disposal. With that, if the builders promise to provide some special amenities, recreational facilities like a play area for kids, swimming pool, gymnasium, tennis courts, etc. if the builder does not provide such amenities by maintaining good qualities like a proper water or electricity supply, lifts are not working properly, there is no available parking space or parking space available that is not sufficient for buyers, power backup is not working properly, and there are improper waste disposal facilities.
Then all this activity comes under the terms of substandard amenities provided by builders, due to which buyers suffer the financial loss. Because buyers pay the property price according to this facility, but at the time of using that facility, they face this inconvenience. Before the enactment of this act, buyers faced double financial loss because they already paid indirectly for these amenities. Now, to repair these, they need to spend more money, which creates financial loss and mental trauma for the buyers. The RERA act provides facilities to the buyers; buyers can send the formal notice to the builder to repair this issue. When an issue comes under the warranty period of the property, it is the responsibility of the builder to repair this within the 30 days after receiving notice from the buyers by spending their own money.
Builders can not demand repair charges for the faults in the property project from the buyers of that property. If the builder does not respond or rectify the issue after receiving notice from the buyers, then the buyers can file a complaint against the builder with the RERA Authority. Then the RERA Authority passes an order for the repair of these damages, and the builder must follow the order of the Authority; otherwise, he can face penalties.
Breach of agreement
In the sale agreement, the builder mentions the date of possession of the property and which amenities or services are provided by the builder, and the sales agreement specifies which qualities are maintained in the process of construction of the properties. If builders do not complete any of the terms that are mentioned in the sale agreement, then it is a breach of the agreement by the builders. If the builder makes a delay in the possession of the property, uses low-quality material for construction, and provides poor services and amenities, then whatever they mention in the sales agreement, it’s clearly making reasons for the buyers of the property to claim compensation from the builder.
For any breach of the agreement, buyers can claim compensation as per this act. First, they directly demand compensation or ask the buyers to provide the services they promised to provide or mentioned in the sales agreement. If the buyers refuse to provide compensation or services, they can file a complaint against the builder in their RERA State Authority. If the complaint is genuine, the RERA Authority passes the order to the builder to provide compensation or amenities to the buyers.
Under which provisions can buyers file a complaint against this issue ?
Section 31 of the RERA Act
For false advertisement of real estate projects, breaching agreements, providing substandard amenities, and providing low-quality service to buyers. Not completing documentation of the property project or for delay in the possession of the property and facing negligence from the builders. Asking for additional charges and not providing the facility. or for unfair fraudulent activity from the builders faced by the buyers, then they can file a complaint against this issue under Section 31 of the RERA Act.
Buyers can file a complaint against the builder or promoters under this section; any aggrieved person can approach the RERA authority or adjudicating officer for filing a complaint. Buyers can file a complaint with a few simple steps; they can just go to the official website of their respective state authority of the RERA and file a complaint against the builders who fail to comply with their obligations mentioned under the Act. For complaint filing, buyers must submit the Form M’ along with the applicable fees of their state RERA Authority. To claim compensation from the builders/promoters, the buyers need to submit Form N, but the amount of compensation is decided by the RERA Authority or by the adjudicating officer after checking the facts of the complaint.
FAQs – Legal Remedies for Builder Negligence
What is the process of registration of the real estate project under the RERA Authority?
Builders or promoters make one application and submit the Form A and applicable fees as per their RERA State authority. With that application, they need to submit required documents and information as per the mention in Section 4 of the act for registration of the project. Along with that, buyers need to submit the Form B and other additional documents as specified in the rules.
Does the delay in the possession of the property come under the term builder negligence ?
Yes, delay in the possession of the property comes under the builder’s negligence, because the possession date of the property is previously decided and mentioned in the sales agreement of the property. Still ignoring that or not following the terms of the agreement by the builder shows negligence. Buyers can demand compensation for delay in possession of the property under Section 18 of the RERA Act.
Are the electrical defects in the property covered by the RERA Act?
Electrical defects come under the term structural defects in the property. Electrical defects in the property mean wrong earthing, short circuits happening, or noticing the current in the walls of the property. If this issue comes under the warranty period of the property, then buyers send the notice to the builders; builders need to solve this issue without asking for any amount from the buyers of the property. And if the builders fail to do this, buyers can claim compensation under Section 14(3) of the RERA Act.
What is the warranty period under the RERA Act?
Warranty period means the first five years after the buyer receives possession of the property. In this warranty period, if any structural defects come with the property, then it is the responsibility of the builder to rectify that issue. For this, the builder can not demand any money from the buyers of the property and must rectify this error within the 30 days after receiving notice from the buyers regarding the issue.
What penalties are faced by builders for nonregistration of the property project under the RERA Authority?
It’s mandatory for the builder to register their project under the RERA Authority. When any property project applicable for registration still does not register by the builder. Then he is liable for penalties; the amount of the penalty is up to 10% of the estimated cost of the property project. If the builder or promoter continuously does this activity for their various projects, then they are liable for a fine or imprisonment of up to three years, or both.
Can RERA impose penalties on the allottee of the property?
Yes, the RERA authority can impose the penalties on the allottee of the property. When any allottee fails to complete the orders of the RERA Authority, as per Section 67 of the RERA Act allottee can face the penalties for noncompliance with RERA orders; he is liable for penalties for each day of default, and the amount can increase up to five percent of the total cost of the sales price of the plot or apartment.