Prior to the enactment of the Real Estate (Regulations and Development) Act, 2016, builders severely humiliated the rights of the buyers by not completing the construction on time, using poor-quality materials for construction, and using low-quality equipment or fittings in the property. Due to this buyer facing financial loss, they need to spend their own money to repair faults in the property. Same happens in the case of delay in possession of the property. To address this issue under the RERA Act, they provide the provisions for the construction defects under Section 14(3) and for construction or delays in possession of the property under Section 18. Buyers can file a complaint with the RERA authority and demand a repair and compensation from the builders.
The most common issue faced by the buyers is the structural defects in the property and construction delays by the builders that directly affect the possession of the property. Once the client takes possession of the property, the builders will think their responsibilities are completed, but no, this is the time when the actual duties of the builders start. As per the RERA regulations any building or construction that is registered under the RERA comes with a five-year warranty period. It means that after giving the possession of the property, if buyers face any construction defects, then that must be repaired by builders without taking any money from the buyers. If the builders refuse to do this, there are legal remedies available for the buyers for solving this issue.
Why do you choose Right To Law Firm as your legal help?
If you’re a buyer, you face any issue of construction delays or structural defects in the property, and you want to cordinate with the builders regarding this issue, or the builders refuse to solve this matter after your coordination with them. Then you need professional legal help to solve this issue. If you are in the primary stage in this process, our lawyers help you coordinate professionally with the builders. In the case where a builder refuses to repair the structural defects or, in the case of delay in construction, builders refuse to give the compensation, then we help the buyers to file a complaint against the builder under the RERA. If needed, then our firm’s lawyers help you to collect the evidence and assist you in representing the your case in front of the RERA authority.
Choose Right To Law firm as your legal partner and make this process smoother and time-saving. Our office is situated in Noida, so If you are living in Noida or nearby areas, then visit our office and get your expert solutions on your RERA matter. If you are residing in any other parts of the nation, then don’t worry; you just need to visit our firm’s website. We have a team of lawyers with whom you can fix an online meeting and can get your expert solutions from them for your RERA matter.
What is the process of claiming compensation under the RERA Act?
For the claim of compensation, buyers need to follow the proper process as per the mention in the RERA Act, 2016.
First step in claiming compensation is that the buyers must inform the builders as early as possible when they notice any structural defects in construction and ask the builders to fix that issue. This is an important step because the RERA Authority wants to give builders one chance to solve their mistakes. When any buyers notice any structural defects in the construction of the property within the five years of possession of the property, it is the duty of the builders to rectify those defects within 30 days without taking any money from the buyers. If the builder solves this problem after sending notice from the consumers, then consumers do need to move towards the next steps, but if the builders do the temporary patch-up, or not accept the problem, or not solve the problem, then consumers need to move forward to the next step.
Builders refuse to rectify the structural defects or not accept any mistake of theirs in structural defects, then buyers can file a complaint against the builders in their respective RERA State Authority. Buyers must gather all the evidence, like a photograph of the structural defects, copies of written notices, or proof of making conversation with builders regarding this complaint. Once all the documents are collected by the consumer, they can go to the RERA website and file a complaint against the builder for breaking the rules of the RERA act.
Once the complaint was filed under the RERA Authority, then RERA scheduled the hearing date for both the parties. Both must be present for the hearing. In the hearing, both parties present their side in front of the authority and submit the evidence of the issue. Like buyers submit a photograph of the leakage or crack on walls or show a copy of the notice that they gave to the builders to repair this fault. Upon these allegations, builders can defending themselves by presenting their point, like the defects addressed by buyers are very minor defects, or by saying that these issues are not under the control of the builder. The RERA Authority hears the arguments of both the parties and check the evidence. If the evidence shows that structural defects are the major, and it clearly shows it is the fault of the builder, then the Authority will give the decision in the favour of the buyer.
When the complaint is true, then the RERA Authority asks the builder to repair that structural damage within the decided timeline or pay the compensation to the buyers. If the builder fails to complete the RERA orders, then he can face higher penalties for this action. If the builder is not satisfied with the results of the RERA authority, then they can file an appeal with the higher authority.
Which types of structural defects are cover under the RERA Act?
RERA covers the various structural defects in the property, whether it’s residential or commercial. Let’s see in detail which defects are covered.
Construction defects
Major cracks in the pillars or beams or on the walls of the property, a sinking foundation or any other construction defects that directly affect the structure or stability of the property. If this happens within the five years of the possession of the property, then, as per the RERA rules, builders must repair those defects in the property within the 30 days after getting notice from the buyers regarding this issue.
Poor workmanship
When any construction has quality issues due to inappropriate construction work, that is called as poor workmanship. Large parts of the walls paint peeling in the internal or external part of the property, or improper flooring, doors and walls not properly fitted, cracks in the walls, and improper tiling. As per the RERA regulations, if this issue comes up within the five years of possession of the property, then builders should rectify this issue. Because this issue significantly affects the usability of the property, builders must solve this by spending their own money; they can not demand any cost from the buyers to solve this issue.
Other major defects in the property
Electrical defects come under one of the major defects in the property because electrical defects can cause a fire in the property, so they directly affect the fire and safety of the property. Electrical defects in the property mean non-functional plug points, wrong earthing, frequent short circuits in the property, or noticing electrical current in the walls or other parts of the property. If any of the above issues are faced by the buyers in the warranty period of the property, then they can send notice regarding these to the builders, and the builders need to solve this issue as soon as possible because it definitely affects the safety of the buyers.
When any builders use poor-quality material or fittings in the property, like low-quality doors and windows that break in the warranty period, low-quality tiles, or any other major fittings such as a poor-quality water pump or generator fitted by a builder that is not working properly. If these issues happen in the warranty period, then as per the RERA’s regulations, the builder must rectify this issue or replace the fittings if the issue is major at their own expense.
Most common issue faced by the buyers is the water leakage issue, like a leakage in the bathroom pipe, a major leakage in the rooftop of the building , an issue in the drainage line, or walls and ceilings that have water patches that show low quality of waterproofing. This water leakage can create severe risk to the structure of the property, so if this issue comes up in the warranty period of the property, then as per the RERA regulations, builders must repair this leakage issue by spending their own money.
Delay in possession of the property
Not only for structural defects but buyers can claim for compensation for other reasons, like for delay in possession of the property or for misleading advertisements, etc., As per Section 18 of the RERA Act, if the builder does not give possession of the property as per the date mentioned in the sales agreement of the property, then he is liable to give compensation to the buyer. If any buyer wants to withdraw from the project due to this delay, then builders must repay their money along with interest to the buyer. If buyers want to stay in the property project, then builders must pay the interest to the buyers until the giving of possession of the property to the buyer.
FAQs –
For which reasons can buyers claim compensation under the RERA Act?
Buyers can claim compensation for the reasons of construction delays and delay in possession of the property under Section 18 of the Act. For structural defects in the property, buyers can claim compensation under the Section 14(3) of the Act. The builders make any fraudulent advertisements, and by this advertisement, if the buyer pays any advance money, then the buyers can claim compensation under Section 12 of the Act.
What is the warranty period under the RERA?
As per the RERA rules, the warranty period for the construction is the five years after the giving of possession of the property to the buyers. So, as per the RERA rules, the builder is accountable to repair the construction defects in the warranty period. Only after the possession of the property first five years do builders need to repair the construction defects in the property.
In how many days does RERA issue the registration license to the property?
The RERA Authority requires 30 days for granting a license to the property project; normally, in 30 days the RERA Authority responds to the builder or developer either by providing the license or by raising objections or further requirements for registration. Normally this process is complete in 30 days but in some projects it will take 90 days for the completion of this process.
What are the responsibilities of the builder after the registration of the property project under the RERA?
Once the registration is complete, builders do not make the false advertisements of the project; they must complete the project in the decided timeline and give the possession of the project to the buyers. They must provide all the amenities or services they promise in the sale agreement of the property. The warranty period of the property means the first five years of the project after the possession. If any structural defects come up in the warranty period of the property, then the builder must resolve those defects by spending their own money within the 30 days after receiving notice from the buyers.
Do the Industrial property projects come under the RERA Act?
No, industrial property project does not come under the RERA Act, as per the mention in Section 2(j), which defines “building,” and Section 2(e), which defines “apartments.” this two terms covered under the RERA. The RERA Act only covers the residential and commercial property projects.
Can builders deduct cancellation charges from the buyer purchase amount?
As per the RERA rules builders can deduct the cancellation charges up to the 10% from the buyer purchase amount at the time of refund, if the buyers cancel the booking by self. But if the buyers cancel the booking due to the builder’s fault then he can submit evidence of the builder’s fault and prevent any deduction from their purchase amount.