by akshayHow is RERA Addressing the Issue of Delayed Possession of Properties?
Buying your dream home might be more challenging than you think. You have to notice and be aware of several loopholes and boulders. If you believe you have already made the down payment and everything is on point so that you will get your home within the stipulated time, things might take a U-turn.
In short, even if you have cleared all the dues and are ready to get your dream home, your builder may delay the process. In that case, you can take the necessary measures to cover your losses.
Please read this article until the end; it will enlighten you with every tiny detail about RERA.
What is RERA?
RERA is the complete form of the Real Estate Regulatory Authority. It is a government body in every state under the Parliamentary Act, the Real Estate (Regulation and Development) Act, 2016. This body works to maintain transparency while buying a home and also acts as an adjudicating body for speedy dispute resolution.
Therefore, when you buy your apartment, please ensure that your builder or promoter keeps every detail transparent.
What is the Purpose of RERA?
RERA makes home-buying easy and safe. However, you can get a concise idea of the purpose of RERA from the following points:
- It guarantees that all the papers regarding a particular property are transparent and safe.
- The body sets up regulations to safeguard your interests and maintains a closer look if buildersfollow them.
- The body holds the builders or developers accountable if they delay in delivering their operations.
Last but not least, RERA ensures that you know your rights while buying a home or investing in real estate properties.
What is the Possession Date?
As per the norms and rules of RERA, your builder or promoter will have to mention a specific date in your agreement papers on which they will hand over the possession of the unit to you. That is to say, the date mentioned to hand over the team to you is the possession date.
Please ensure that your promoter mentions a specific date in the agreement. It is a mandatory criterion of RERA.
Factors on Which Possession Date is Fixed
Your promoter cannot put up a random date on the agreement, or you cannot pressurize your promoter to do so. The possession date is fixed based on the following factors:
- The period required to complete the construction work.
- Availability of the raw materials
- Labour availability at the construction site.
- Time is needed to get legal approval from the concerned authorities.
- Market condition
- Availability of cash flow
Difference between Completion and Possession Date
Well, you may think the completion and possession dates are the same. But no, there is a slight difference between these two dates. On completion day, you will close the transaction with the promoter, and your advocate will transfer the title to you. However, the possession date is when you will finally receive the keys to your apartment and can move into it.
What Should You Do if Your Builder Fails to Deliver Home on Time?
Unfortunately, you can take the necessary actions if you do not receive your property within the given time. But first, please ensure that you have cross-checked the possession date factors and when it may delay. If everything is on point, you can move forward.
You can move to a court under the RERA Act. If proven wrong, your promoter may have to pay you 10% interest on the property’s value.
Functions of RERA Here
You might be thinking about how RERA is addressing this issue. You can see it below here:
1. If you file a complaint, it will move to the court. As per Section 71 of the Act, the compensation claim filed by you will be presented before the adjudicating officer of RERA. The officer holds a similar rank as the District Judge. They will decide within 60 days under the Rules of Natural Justice.
The officer, however, can summon anyone well-versed in this matter to benefit them in the said enquiry. At last, the officer may ask the promoter to compensate you or pay you the interest you deserve.
2. According to Section 72 of the Act, the adjudicating officer must keep the following factors in mind while calculating the sum of the compensation:
- The amount of money gained because of the default
- The amount of money lost because of the fault.
- Repetition of the default
- Other necessary factors
If you are dissatisfied with the officer’s decision, you have complete freedom to move to the higher authority, i.e. Appellate Tribunal. In that case, you have to appeal within 60 days of the decision of the adjudicating officer.
Moreover, your promoter can also move to the tribunal, but they have to pay 30% before they do so.
But everything depends on how you want to receive your compensation. You can request a full refund with interest or continue with the project and receive compensation for every month of delay.
Moreover, you can also claim money to buy alternative accommodation.
Conclusion
In short, you will be on time for the fair hearing if you have already faced a delay in receiving the keys to your home.
