For Consumers

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Few things happen generally once in a life, do it cautiously. Get protected with the perspective of consumer by the real estate regulations. Multiple templates for all needs. Check the consumers Law In India here.

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A property document is an agreement that covers comprehensively the terms on which a property’s sale will take place, the conditions, and the date on which the sale will be completed. We will assign you expert lawyers who will estimate the value of the property accurately.

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Frequent questions, quickly answered.

The Real Estate is intended to achieve the following objectives of consumers law act:

  • ensure accountability towards allottees and protect their interest.

  • infuse transparency, ensure fair-play and reduce frauds & delays.

  • introduce professionalism and pan India standardization.

  • establish symmetry of information between the promoter and allottee.

  • imposing certain responsibilities on both promoter and allottees.

  • establish regulatory oversight mechanism to enforce contracts;

  • establish fast-track dispute resolution mechanism.

  • Promote good governance in the sector which in turn would create investor confidence.

The State Government is required to,-
  • notify Rules for the implementation of the Act.

  • establish the Regulatory Authority.

  • designate an officer (preferably Housing Secretary) as interim Regulatory Authority, until the establishment of a full time Regulatory Authority.

  • establish the Appellate Tribunal.

  • designate an existing Appellate Tribunal (under any other law in force) to be the Appellate Tribunal, until the establishment of a full time Appellate Tribunal.

  • appoint the Chairperson and Members of the Regulatory Authority and the Members of the Appellate Tribunal based on recommendation of a selection Committee.

  • appoint officers and other employees of Regulatory Authority and the Appellate Tribunal.

  • identify office space etc. and other infrastructure for its functioning.

  • constitute a ‘Real Estate Regulatory Fund’.

  • make and launch a website for Regulatory Authority.

Explanation to section 2(za)

As per the Explanation to section 2(za); the rate of interest payable by either the promoter or the allottee shall be the same. The rate of interest has been specified in Rule 17 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. Accordingly the rate of interest is State Bank of India highest marginal cost of lending rate plus two percent. Provided that in case the State Bank of India marginal cost of funds based lending rates is not in use. It would be replaced by such benchmark lending rates which the State Bank of India may fix, from time to time, for lending to the general public.

As per section 2(d) an allottee includes a person who acquires the said ‘ apartment/plot’ through transfer or sale. But does not include a person to whom such plot, apartment is given on rent.

Section 2(n) defines ‘common areas’ to include open parking areas. Thus open parking areas cannot be sold to the allotters.

  • Section 2(n) defines ‘common areas’ to include ‘community and commercial facilities. Thus they are an integral part of the project, to be handed over to the Association/society of Allottees.

Section 2(zf) and section 2(q) respectively, define ‘occupancy certificate’ and ‘completion certificate’. The two definitions are very broad and uses the term by whatever name called. Thus, if only one certificate is issued which provides for both the aspects covered under the two definitions. It would suffice the requirements under the Act.

Section2 (zf) and section 2(q)

Section2 (zf) and section 2(q) respectively, define ‘occupancy certificate’ and ‘completion certificate’. Occupancy certificate relates to the occupation of the apartment/building, which has provision for civic infrastructure such as water, sanitation and electricity and is habitable. Completion certificate relates to the completion of the entire project certifying that the project has been developed according to the sanctioned plan, layout plan and sections, as approved by the competent authority.

Section 2(y) defines the term ‘ garage’, which can be sold to the allotted independent of the apartment;.

Section 2(zm) defines the term ‘real estate agents’, which is a very broad and inclusive definition. Covers all from of agencies involved in sale and purchase of projects, registered under the Act. Consequently, web-portals etc. engaged in selling plots or apartments are also covered under the Act and are required to comply with the duties and responsibilities as provided therein including under the Rules and regulations made thereunder.

The position of parking is as follows;
  • Open Parking Area: This has been clearly included in the definition of “Common Areas” which need to be conveyed to the Association of Allottees after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible
  • Covered Parking is permitted to be sold.
  • Garage as defined in the Act is permitted to be sold.

Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.

Yes. The Act covers both residential and commercial real estate. Section 2(e) defines ‘apartment’ and section 2(i) defines ‘ building’ which include both residential and commercial real estate.

Yes. As regards the ambit of the Act, there is no distinction between an ongoing project and a future project. In other words, both ongoing/incomplete projects and future projects are covered under the Act.

As per section 3(1) first proviso, the promoters of all ongoing projects will need to register their projects with the Regulatory Authority, within 3 months of its commencement, i.e. 1st May 2017.

Section 3(1) provides that all projects within a ‘Planning areas’ will require to be registered with the Authority and ‘planning area’ has been defined under section 2(zh).

However, section 3(1) second proviso gives powers to the Authority in the interest of ‘allottees’ to order/direct the promoter to register projects beyond the planning area, which has the requisite permission of the local authority.

Section 19 provides for the various rights of the allottees. This section specifies various rights which the allottees have against the promoters. Including those which the promoters are liable to fulfil based on the agreement entered into with the allottees, namely-stage-wise schedule of completion of the project and the services, claim timely possession of the apartment/plot, entitlement to necessary documents and plans etc.

Section 20 provides for the various duties of the allottees, which provides for matters relating to payment regarding the apartment/ plot, liability towards interest for delay in payment, responsibility to take possession, participate in formation of association etc.

Yes. In accordance with the Agreement for Sale as prescribed in Form-G, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee. The Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rules, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.

The interest payment is in accordance with the Agreement for Sale and hence should be automatically paid. The buyer may have to file a complaint to Regulatory Authority if there is a grievance.

In accordance with the Agreement for Sale, the Allottee has to pay to the Promoter, a rate of interest specified in rule 17 of the Rules. The rate of interest is equal to the State Bank of India highest Marginal Cost of Lending Rate plus two percent, on all the amounts which become due and payable by the Allottee to the Promoter under the terms of the Agreement for Sale from the date the said amount is payable by the allottee(s) to the Promoter.

Section 31 of the Act and Rule 35 of Rajasthan Real Estate (Regulation and Development) Rules, 2017 provide for filing of complaint with Regulatory Authority, by an aggrieved person. The aggrieved person can file an application online as per Form-N prescribed under the Rules.

Regulatory Authority empowers any aggrieved person to file a complaint with respect to a registered real estate project. This will include an allottee who has an agreement executed before the ongoing project is registered with the Regulatory Authority. However, the Regulatory Authority will have authority to adjudicate for violations and contravention of provisions of the Real Estate (Regulation and Development) Act or rules and regulations made thereunder.

An aggrieved person may file a complaint with Regulatory Authority for any violation or contravention of the provisions of the Act or the Rules or Regulations made there under.

Promoter has to enable formation of Association of Allottees like Cooperative Society, Company, Association, Federation etc. within three months from the date on which fifty one per cent of the total number of purchasers, in such a building or a wing, have booked their apartment.

Yes. An aggrieved person having any interest in the registered real estate project can file complaint.

Section 31 of the Act provides for filling of complaint by an aggrieved with the Regulatory Authority. Any aggrieved person may file a complaint in Form-N prescribed in Rules. The Complaint shall be accompanied by a fee of rupees 1000/- to be paid through online mode of payment. The manner for filling the complaint has been specified in rule 35 of the Rules.

Section 29 provides that the Authority should endeavor to dispose of the questions/complaints as expeditiously as possible but not later than sixty days from the date of filling the same. However, where it could not be disposed of during the said period the Authority is required to record its reasons for the same.

Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court.

Section 44 provides that the Appellate Tribunal should endeavor to dispose of the appeal as expeditiously as possible but not later than sixty days from filling the appeal. However, where the same could not be disposed of during the said period the Appellate Tribunal is required to record its reasons for the same.

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