Exploring Key Provisions of RERA: Rights of Allottees and Responsibilities of Promoters

The Real Estate (Regulation and Development) Act, 2016, has redefined the way real estate transactions are carried out in India, offering significant protection to both buyers (allottees) and developers (promoters). In this blog, we delve deeper into some key provisions of RERA, particularly the rights of allottees and the responsibilities of promoters.

1. Who is Considered an ‘Allottee’ Under RERA?

An allottee, as per Section 2(d) of the Act, refers to any person who is allotted or agrees to be allotted a property (such as an apartment or plot) in a real estate project. Notably, this term also includes anyone who acquires the property through secondary sale or transfer, but it does not cover those who rent or lease the property.

2. Can Developers Sell Parking Spaces to Allottees?

The issue of parking spaces has often been a point of confusion. According to RERA:

• Open Parking Areas: These are considered common areas and cannot be sold or allotted to individual buyers. These spaces must be transferred to the association of allottees after the issuance of the Occupancy Certificate (OC).
• Covered Parking & Garage: These, on the other hand, are considered separate assets and can be sold to allottees, provided the sale is clearly mentioned in the agreement.

3. What Happens If There is a Delay in the Project Completion?

Section 18 of RERA outlines the promoter's obligation in case of delays. If a project is delayed beyond the promised completion date, the promoter is required to compensate the allottee. This includes a refund of the amount paid by the allottee with interest, in addition to any compensation for any losses incurred due to the delay.

4. What are the Rights of Allottees to Seek Redressal?

If an allottee faces issues with the promoter, such as delay in possession, poor construction quality, or non-compliance with the agreement, they can approach either the Real Estate Regulatory Authority or an adjudicating officer for resolution. It’s important to note that the allottee can only approach one forum, either RERA or consumer courts, to resolve the issue.

5. Can Developers and Allottees Resolve Disputes through a Fast-Track Mechanism?

Yes, RERA provides a fast-track dispute resolution mechanism to handle grievances efficiently. The aim is to minimize delays and ensure that both developers and homebuyers have their issues resolved in a timely manner.

RERA’s provisions ensure that all parties—promoters, allottees, and developers—are protected, and that there is a mechanism in place to deal with grievances swiftly. As the real estate market continues to evolve, it’s important for both buyers and developers to stay informed about their rights and responsibilities under this crucial piece of legislation.

Source: https://maharera.maharashtra.gov.in/