RIGHTS OF ALLOTTEES UNDER RERA

The Happy Consumers 😊

 

It is a matter of fact that due to lack of regulation in the real estate sector in India, the consumers have been reduced to a state of helplessness. Consumers have been at the receiving end and have been investing their hard-earned money in to the sector but at the same time, they have been faced with bad experiences wherein they were not handed over the desired house, building or apartment that had been displayed in the plan / brochure even after paying the advance amount or the handing over of the project was delayed by the builder or situations where the builder has altered the designs / plans according to its own likings before delivery.

The Real Estate (Regulation and Development) Act, 2016 seeks to mitigate the opacity of the sector, make the real estate sector more credible, preventing the consumers from falling prey to unfair practices and make them happy. In view of the same, the act by Sections 11 to 19 grants various positive and negative rights to the Allottees which can be briefed up as below.

 

Sl.No.	Section	Rights / Benefits Granted
1.	11(3)	Right to information from the promoter at the time of booking and issue of allotment letter.
2.	11(4)(a)	Responsibility of the promoter for all obligations and functions to the allottees / association of allottees as per the agreement for sale.
3.	11(4)(g)	Responsibility of the promoter to pay all outgoings until he transfers the physical possession of the project to the allottee/ association of allottees
4.	Proviso to 11(5)	Right to approach the authority for relief when aggrieved by the cancellation of allotment that is not in accordance with the terms of the agreement for sale.
5.	12	Right to get compensated by the promoter on sustaining any loss or damage because of any incorrect, false information included in the notice, advertisement or prospectus.
6.	14(2)(ii)	Right to give previous written consent before any alterations and additions are made in the sanctioned plans, layout plans and specifications of the buildings / common areas within the project.
7.	14(3)	Right to receive compensation in the event of promoter's failure to rectify defects in workmanship, quality or provision of services as per the agreement within 5 years from the date of handing over.
8.	15(1)	Right to give consent before the promoter transfers / assigns majority rights and liabilities in respect of a project to a third party.
9.	16(3)	Right to get the insurance transferred to the benefit of the allottee at the time of entering into an agreement for sale with the allottee.
Sl.No.	Section	Rights / Benefits Granted
10.	17	Right to get the title transferred and hand over the necessary documents and plans within 30 days after obtaining the completion certificate.
11.	17(1)	Right to execution of registered conveyance deed.
12.	18	Right to withdraw from the project and to receive the amount paid on failure of the promoter to complete or give possession of the apartment, plot or building.
13.	19(1)	Right to obtain the information relating to sanctioned plans, layout plans along with the specifications approved by the competent authority and other information provided for in the Act.
14.	19(2)	Right to know stage-wise time schedule of completion of project.
15.	19(3)	Right to claim possession of the apartment, plot or building.
16.	19(4)	Right to claim the refund of the amount paid along with the interest at prescribed rate on failure of the promoter to give possession of the apartment, plot or building.
17.	19(5)	Right to have the necessary documents and plans after gaining physical possession of the project.

 

Where the Act grants rights on the allottees, it has managed to maintain a balance by parallelly levying duties and responsibilities on them such as making necessary payments within the time specified in the agreement for sale, paying interest for delayed payments at the prescribed rates, participation towards the formation of an association, society or cooperative society of the allottees, taking physical possession of the apartment, plot or building within a period of two months from the issue of the occupancy certificate, participation in registration of the conveyance deed of the apartment, plot or building, etc.

Conclusion

This new legislation is a step in the right direction and is expected to remove the chronic Issue of late delivery of projects. This will also restore the confidence of the buyers and others stakeholders in the sector.