Answer By law4u team
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), real estate developers (or builders) have specific obligations towards buyers to ensure transparency, accountability, and consumer protection in real estate transactions. Here’s a detailed overview of these obligations: 1. Registration of Real Estate Projects: 1.1. Mandatory Registration: Project Registration: Developers must register their real estate projects with the RERA authority before advertising or selling. This ensures that projects comply with RERA regulations and are subject to regulatory oversight. 1.2. Details Required: Project Information: Developers must provide detailed information about the project, including the layout plan, project timelines, land title, and details of the legal status of the project. 2. Disclosure and Transparency: 2.1. Project Details: Detailed Information: Developers must disclose all relevant details about the project, including the project plan, approvals, and completion timeline. This information must be updated regularly on the RERA portal. 2.2. Financial Details: Utilization of Funds: Developers must maintain a separate bank account for the project and use the funds collected from buyers solely for the project’s construction and development. This ensures that buyers’ funds are used appropriately. 3. Delivery and Possession: 3.1. Timely Delivery: Completion Date: Developers are obligated to complete and deliver the project within the stipulated time frame specified in the sale agreement. Delays in possession must be communicated to buyers with valid reasons. 3.2. Extension of Time: Valid Grounds: If the developer requires an extension of time for project completion, they must obtain approval from RERA and provide valid reasons for the delay. 4. Quality of Construction: 4.1. Standards and Specifications: Construction Quality: Developers must adhere to the agreed-upon construction standards and specifications. The quality of materials and workmanship should meet the standards promised in the sales agreement. 4.2. Defects Liability: Defects Liability Period: Developers are responsible for rectifying defects in the construction that arise within a specified period (usually 5 years from possession). This includes structural defects and poor workmanship. 5. Legal Compliance and Documentation: 5.1. Compliance with Laws: Regulatory Compliance: Developers must comply with all applicable laws and regulations related to land acquisition, environmental clearances, and building approvals. 5.2. Sale Agreement: Agreement Terms: Developers must provide buyers with a written sale agreement that outlines the terms and conditions of the sale, including project details, payment schedules, and possession timelines. 6. Consumer Rights and Grievance Redressal: 6.1. Grievance Redressal: Mechanism: Developers must address grievances and complaints from buyers promptly. RERA provides a mechanism for buyers to file complaints against developers for non-compliance or disputes. 6.2. Compensation: Compensation for Delays: Developers may be required to pay compensation to buyers for delays in possession or other failures to meet contractual obligations. 7. Advertising and Promotion: 7.1. Accurate Advertising: Honest Representation: Developers must ensure that all advertisements and promotional materials are accurate and not misleading. They must provide true information about the project’s features, amenities, and completion status. 8. Post-Completion Obligations: 8.1. Handover of Possession: Possession and Documentation: Upon completion, developers must hand over possession of the property to buyers along with all necessary documents, including title deeds and occupancy certificates. 8.2. Maintenance and Services: Initial Maintenance: Developers may be required to provide initial maintenance services for a specified period after possession is handed over. Summary RERA imposes several obligations on real estate developers to ensure fairness, transparency, and accountability in real estate transactions. These obligations cover project registration, timely delivery, quality of construction, accurate disclosure, and effective grievance redressal. By adhering to these requirements, developers help protect the interests of buyers and contribute to a more regulated and reliable real estate market.
