Answer By law4u team
The Real Estate (Regulation and Development) Act, 2016 (RERA) addresses issues related to title and ownership of the property in India through various provisions aimed at ensuring transparency, accountability, and consumer protection in the real estate sector. Here’s how RERA handles these issues: 1. Mandatory Registration of Projects: Under RERA, all residential real estate projects exceeding a certain area (generally 500 square meters or eight apartments) must be registered with the respective state RERA authority. This registration includes details about the title of the land and ownership. 2. Disclosure of Title Documents: Developers are required to provide clear and accurate details regarding the title of the property at the time of registration. This includes: The title documents of the land. Information on encumbrances, if any (e.g., mortgages or liens). Ownership details, ensuring that the developer has legal rights to sell the property. 3. Clear Title Certificate: RERA mandates that developers must obtain a clear title certificate for the land before commencing any project. This ensures that the property is free from legal disputes and claims. 4. Protection of Buyer’s Interests: RERA protects the interests of buyers by ensuring that they are provided with comprehensive information about the property’s title and ownership. Buyers have the right to seek clarity on any title-related issues before making a purchase. 5. Role of Real Estate Regulatory Authority: The state RERA authority acts as a regulatory body to oversee real estate transactions. It has the power to investigate complaints related to title disputes and can take action against developers who fail to comply with RERA provisions. 6. Remedies for Buyers: In case of title disputes, RERA provides a mechanism for buyers to file complaints against developers. The authority can order the developer to rectify any title-related issues or provide compensation to affected buyers. 7. Escrow Account Requirements: Developers are required to deposit a certain percentage of the amount collected from buyers into an escrow account. This ensures that funds are used exclusively for the development of the project and helps in maintaining transparency in financial transactions related to property ownership. 8. Provisions for Title Guarantee: RERA emphasizes the need for a title guarantee, ensuring that the developer has the authority to transfer ownership to the buyer. This adds an additional layer of security for buyers against potential title disputes. 9. Penalties for Non-Compliance: RERA imposes penalties on developers for non-compliance with title-related disclosures and requirements. This acts as a deterrent against misrepresentation and fraud in property dealings. 10. Amendments to Existing Laws: RERA encourages states to amend existing property laws to provide better clarity and legal backing for property title issues, thus streamlining the process for buyers and developers alike. Conclusion: RERA addresses issues related to title and ownership of property by mandating transparency and accountability in real estate transactions. By requiring clear title documentation, protecting buyers’ interests, and providing a regulatory framework, RERA aims to enhance the confidence of buyers in the real estate market and reduce disputes related to property ownership.
