Under the Real Estate (Regulation and Development) Act, 2016 (RERA), several provisions are designed to protect the interests of buyers in joint ventures within the real estate sector. Here are the key provisions related to buyer protection: Registration of Projects: All real estate projects, including those developed through joint ventures, must be registered with the Real Estate Regulatory Authority (RERA) before any marketing or selling activities. This ensures that only legitimate projects proceed to the market. Disclosure of Project Details: Developers are required to provide comprehensive details about the project, including layout plans, specifications, and the carpet area. This transparency helps buyers make informed decisions. Escrow Account: Developers must deposit 70% of the amount received from buyers into a separate escrow account. This fund can only be used for project construction and development, ensuring that the money is utilized for the intended purpose. Timely Completion and Possession: RERA mandates that developers adhere to the timelines specified for project completion and possession. Delays can lead to penalties, protecting buyers from prolonged uncertainty. Quality of Construction: The Act ensures that the construction quality meets the promised specifications and standards. Buyers have the right to claim compensation for defects in construction or poor quality of materials used. Right to Information: Buyers have the right to be informed about any changes in the project, including alterations to the layout, structure, or amenities. Developers must communicate any significant changes promptly. Consumer Redressal Mechanism: RERA establishes a mechanism for resolving disputes between buyers and developers. Buyers can file complaints with the RERA authority or the adjudicating officer for redressal of grievances. Compensation for Delayed Possession: If a developer fails to deliver possession within the promised timeframe, buyers are entitled to compensation. RERA allows buyers to claim interest on the amount paid for the period of delay. Transparency in Agreements: Sale agreements must include clear terms and conditions regarding payment schedules, possession timelines, and liability clauses. This helps buyers understand their rights and obligations. Joint Venture Agreements: In the case of joint ventures, RERA holds all developers (including those involved in joint ventures) accountable for compliance with the provisions of the Act. Buyers can seek recourse against any party involved in the project. Prohibition of False Advertisements: The Act prohibits developers from making false or misleading representations about the project. Buyers are protected from deceptive marketing practices. In summary, RERA provides a robust framework for protecting buyers' interests in joint ventures by ensuring transparency, accountability, and timely redressal of grievances. The Act aims to enhance trust and confidence in the real estate sector, benefiting both buyers and developers.

Dear client, What if buying a home isn't stressful any more? Imagine if the process is more seamless, transparent and secure. All the hard-earned money is protected, buyers' interests are prioritised and there are fair practices every step of the way. Welcome to the transformative era of RERA, the Real Estate (Regulation and Development) Act, which is reshaping the landscape of the Indian real estate market and empowering homebuyers. The legislation instilled a sense of transparency, accountability, and efficiency in the industry. Let's look at how RERA guidelines safeguard homebuyers through the key provisions. 1. Mandatory property documentation-According to Section 4 of the RERA Act, developers must submit essential documents like the land approval and allotment letter, agreement for sale, conveyance deed, and more. This requirement ensures that all builders are legally bound to deliver critical property documents to buyers, thus enhancing trust and transparency in the process. 2. Developer's credibility- Section 4 also mandates the disclosure of the developer's project details for the last five years, including their completed and ongoing projects. This also includes the completion status and any pending legal cases on any of the projects under the builder's portfolio. Since this information is required to be submitted during the application for registration, buyers get a clear picture of the developer's reliability in the industry. 3. Financial security- According to Section 4 (2)(I)(D), developers need to deposit 70% of the funds received from buyers into a separate escrow account with a scheduled bank. A real estate company can only use the funds for construction and land costs. This prevents misuse of funds and protects the buyers' investments. In case a developer violates this provision, it can lead to penalties. 4. Duties of the promoters- In Section 11 of the RERA Act, 2016, the promoter duties are outlined, which include: a. Executing a registered conveyance deed of the flat, plot, or building in favour of the buyer b. Obtaining the completion and occupancy certificate from relevant authorities and providing it to the owners 5. Standardised carpet area- Before RERA guidelines were applied in the industry, the calculation of carpet area varied amongst developers. As a result, it led to inconsistent property prices. Now, the Real Estate Regulatory Act provides a standard definition and calculation method for carpet areas. This ensures uniformity and prevents arbitrary price hikes. 6. Parity in interest rates- Prior to the Real Estate Regulatory Act, there was no uniformity in interest rates for payment defaults. However, with RERA, there's a mandate that interest rates on default must be the same for both parties involved. This results in fairness, as buyers earlier faced higher interest rates on defaults compared to the interest paid by developers in case of delayed possession. 7. Cap in advance payment- According to Section 13 (1) of the RERA Act, 2016, developers and promoters cannot accept more than 10% of the home's cost as an advance or as application fees before they sign the sale agreement. This provision also protects buyers from various malpractices that were common before RERA. 8. Buyer rights- One of the biggest advantages of opting for RERA-approved projects is that it offers various rights to home buyers. For instance, a. Delay in possession- In this case, buyers can withdraw from the housing scheme and demand a full refund with interest from the due date till the amount is refunded. They can also choose to continue with the home and receive compensation with interest till the project is completed and possession is given. b. Post-possession defects- According to Section 14 (3), if any structural defect, quality defect or defect in workmanship or service is discovered within five years of possession, the developer must rectify it within 30 days at no extra cost. Home buyers are entitled to compensation if the builder fails to do so. The RERA Act of 2016 has been instrumental in protecting home buyers and ensuring a fair, transparent, and accountable real estate sector. Its provisions safeguard buyers' investments, promote timely project completion and ensure the quality of construction. By standardising processes and enforcing strict regulations, RERA has significantly improved the home-buying experience, making it more secure and trustworthy. Should you have any queries, please feel free to contact us!

Dear client, Understanding Section 13 of RERA The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency and accountability to the real estate sector in India. Among its various provisions, Section 13 holds particular importance as it safeguards the interests of homebuyers by regulating advance payments and agreements for sale. In this comprehensive guide, we will break down the key aspects of Section 13, its implications, and how it ensures the protection of homebuyers. Section 13 in Detail: Section 13 (1): Limit on Advance Payment RERA stipulates that a promoter, i.e., the builder or developer, cannot accept an advance payment or application fee from a homebuyer that exceeds ten per cent of the cost of the apartment, plot, or building, as the case may be, without first entering into a written agreement for sale. This provision is designed to prevent unscrupulous builders from demanding large sums from buyers without legal commitment. Section 13 (2): Details in the Agreement for Sale The agreement for sale, as required in sub-section (1), must adhere to specific guidelines: – Form: It should be in a form as prescribed by RERA. – Particulars of Development: The agreement must specify the particulars of the project’s development, including details about the construction, specifications, and internal and external development works. – Payment Schedule: It should outline the dates and manner in which payments towards the property’s cost are to be made by the homebuyers. – Possession Date: The agreement must include the date on which possession of the property will be handed over. – Interest Rates: It should specify the rates of interest payable by both the promoter and the allottee in case of default. Implications for Homebuyers: Section 13 of RERA has several implications for homebuyers: Financial Security: Homebuyers are protected from exorbitant advance payments, ensuring they are not financially burdened before the legal agreement is in place. Transparency: The agreement for sale provides comprehensive details about the property, payment schedule, and possession date, promoting transparency in real estate transactions. Legal Recourse: In case of defaults or disputes, the written agreement becomes a crucial legal document for both homebuyers and promoters. Landmark Case on Section 13: A Complete Analysis In a case before the Rajasthan Real Estate Regulatory Authority in Jaipur, a complainant participated in an auction organized by respondent 1 and was allotted a plot in a project being carried out by respondent 1 under a Memorandum of Understanding (MoU) with respondent 2. The complainant had deposited 15% of the total amount as per the terms. However, respondent 1 issued a further demand note for 35% of the amount without executing an agreement for sale and included a warning in the demand note. The complainant contended that respondent 1 had not fulfilled the requirement of executing an agreement for sale as mandated by Section 13 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The complainant sought the following remedies: A direction to respondent 1 to execute an agreement for sale in accordance with Section 13 of the Act. A restraint on respondent 1 from demanding or accepting any further amount until such an agreement is executed and registered. The bench, comprising Nihal Chand Goel (Chairman), Shailendra Agarwal, and Salvinder Singh Sohata (Members), held that all provisions of RERA, including Section 13, which apply to any advertisement, promotion, booking offer of sale, or sale of any plots in a registered project, would apply to the project in question. The auction had been conducted with the announcement that the project was registered with RERA. This information assured and promised potential buyers that the provisions of the Act and the rules and regulations made thereunder would apply to this project and govern their relationship with respondent 1 regarding any plot purchased at the auction. The Authority Issued the Following Directions: Respondent 1 was instructed to execute an agreement for sale with the complainant and register it before demanding or accepting any further amount beyond the 15% already deposited. The complainant was obligated to pay the balance amount by 30-09-2020 or within three days from the date of the sale agreement as per the payment schedule provided in the agreement for the sale to be executed, whichever was earlier. Respondent 1 was directed to align its land disposal rules and terms and conditions of the auction with the provisions of the Act. This decision by the Rajasthan Real Estate Regulatory Authority ensures that the complainant’s rights under RERA are protected, and it upholds the requirement for an agreement for sale before further amounts can be demanded from the buyer. Additionally, it emphasizes the importance of adherence to RERA rules and regulations in real estate transactions. Should you have any queries, please feel free to contact us!