Property

Power of Attorney in India for Selling Property

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NRIs use Power of Attorney (‘POA’) as an instrument to appoint an agent/attorney to help them sell their properties in India. NRIs find it difficult to come to India and sell their property, and hence, the concept of a power of attorney exists. A power of attorney authorizes its holder to enter into transactions and take decisions on behalf of the actual owner of the property. 

Special Power of Attorney for Purchase of Property: India Format

You can find the format of a power of attorney here,. You should draft a POA on a green stamp/bond paper or a non-judicial stamp paper of INR 100. The NRI should authorise the power of attorney himself and the Indian Consulate in the country of residence. Once authorised, the NRI should send a power of attorney to the sub-registrar’s office and relevant witnesses, identity proofs, and photograph copies.

You should include certain clauses in a PoA to ensure that no loopholes could pose a threat to the NRI/owner/principal in case of a dispute. Some of these clauses are:

  • Full details of the parties, including relevant information such as name, age, address, occupation, etc.

  • The reason for entering into this agreement (sale or purchase of property by the NRI in India)

  • Termination clause to ensure that the power is not misused beyond the fulfillment of the objective of this agreement.

  • The clarity in the specific powers granted to the agent and the attached responsibility.

Power of Attorney by NRI to Buy Property in India

NRIs often purchase property in India for investment purposes or to have a visiting home/holiday home. However, most NRIs do not have the time to come to India to execute the Sale Deed/Agreement for Sale transaction. Therefore, a power of attorney for purchase of property by an NRI facilitates sale transactions legally. Moreover, NRIs would require a special power of attorney to execute a transaction. Through a general power of attorney, no NRI would be able to sell or purchase property in India. 

A special power of attorney gives an agent the power to act on behalf of the principal (NRI) for a specific matter, including but not limited to taking legal or financial decisions. 

To have an effective POA for the purchase of property, an NRI must sign the POA agreement in the presence of a consulate officer or Notary in the country of residence. Further, such consulate officers must attest to the agreement for it to be valid. The NRI should register the POA under the Indian Registration Act, 1908, to make it valid and enforceable in India.

People Also Read This: Get Your Power of Attorney Carefully Drafted by Expert Lawyer

Power of Attorney to Sell Property in India

Power of attorney to sell property in India also requires authorization from the country of residence. Let us examine a few countries of residence and the procedures related to power of attorney therein.

Australia:

An NRI must book an appointment with a Notary in Australia where the NRI and two witnesses and the Notary officer would sign the POAon a green stamped or bond paper. 

After notarizing the POA, you would send it to the Indian Consulate, who would stamp it with an Apostille by the Department of Foreign Affairs (DFAT) and then send it back to India to the appropriate authority duty charges prescribed by the local government.

Then, you can register the agreement, and the transaction can legally take place.

UK:

There is a 3-step process when an NRI from the UK wishes to purchase or sell property in India. 

Firstly, an attorney from India must draft the POA according to the needs of both parties and according to the applicable laws (ICA, 1872, or RERA, 2016, etc.) in India.

Secondly, the POA must be sent to the place of residence, i.e., the UK, where you can get it notarized by a Notary Public for a charge between 20 to 100 pounds. The concerned NRI, along with two witnesses and the Notary, will have to sign the document. After notarization, the Indian Consulate, located at the Indian High Commission, London, would attest the same. 

Thirdly, the document can be sent to the attorney in India where registration happens, and the transaction can legally take place.

USA:

There is a 3-step process when an NRI from the US wishes to purchase or sell property in India.

Firstly, an attorney from India must draft the POA, and the NRI and two witnesses should sign this agreement. The notarization of the document should be done in the presence of a Notary Public. Further, it must be sent to the Indian Consulate for his/her signature. An appropriate fee would be charged for attestation, notarization, etc.

Secondly, the POA must be sent to the Secretary of State for an apostille from the Department of State, Authentications Office, which will use the Seal of the US Department of State to authorize the document's validity will be sent overseas.

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Thirdly, the agreement shall be sent to the attorney in India for the legal execution of the transaction.

The POA is a powerful document and must be drafted between two parties that trust each other. The agent must be selected with caution as the agreement would transfer significant power to decide the owner/principal to the agent. A poorly drafted agreement that does not consider the risks involved (such as consideration, percentage of share between co-owners, obligations of agents, the role of decision making by an agent, etc.) would cause litigation which would severely affect the parties.

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How to Check Property Details Online in India?
Property

How to Check Property Details Online in India?

Checking the property details can be a very tedious job. However, you should always ensure that the person from whom you buy or rent property is the rightful owner. Now, one can check property details online as well. Let us see how!

1)  How to check if property is legal or not online?

Every state in India has an Online Registration Information System. It is a government portal where all the information about property is available. One can check the status of the property by going on the official website of the State-specific Online Registration Information System. It is a government portal where all the information about the property is available. For example: Property Details of Maharashtra and Delhi can be found on “IGR Marahstra” (https://igrmaharashtra.gov.in/) and “Delhi Online Registration Information System” (“DORIS”) (https://doris.delhigovt.nic.in/) repectively.

Next step is to go to the E-search option available on the webpage. For example, in DORIS, it is the first option from the left. After clicking on E-Search, a new window will open where one can find different options to search the property's details. One can search and verify the correctness of the property details through “Name or Property Address”. If the owner and property details are genuine, one can say that it is a legal property. One will also have to verify various property documents to ensure the property complies with the laws of state/centre.

2)  How to check property ownership online in india?

Every state has a separate website for property detail. To check for the land ownership, one needs to visit the official website of the same. Land records of the concerned states will be available on their respective official website. For example, In order to check the land records of Maharashtra, one will have to visit https://bhulekh.mahabhumi.gov.in/. Though the contents are in Marathi, you will get an option to translate the web page to english on the upper right hand corner. For Delhi the official website is https://dlrc.delhigovt.nic.in/Index.aspx. Most important thing to note here is, the interface for every website will be different. For example: After going on the official website of Maharashtra one will see a Map. One can either put the details manually to search or click their respective district on the map which will then direct the user to the records of the particular district.

3)  How to verify property documents?

Property Verification is perhaps the most important part while purchasing a property. Due Dilligence of documents is of utmost importance as it gives a clear idea about whether the property is legal or not. Whether the property title is clear helps us check whether the property has some loan which is due, etc.

Nowadays, various legal service providers can verify documents online. One can also visit lawyers in the district court who can verify the documents for the clients.

Below-mentioned documents are required for verification

  1. Sale Deed

  2. Power of Attorney

  3. Property Title

  4. Agreement to sale

  5. Encumbrance Certificate, to ensure there is no mortgage or lien on the property.

  6. Any other document like Partition deed or Will depending upon the context.

4)  Legal and Technical Verification of Property: 

Legal and Technical Verification are a rather safer way to verify a property. Whenever a lender goes to the bank to take Property Loan. Banks (Housing Finance Bank or Non-Banking Financial Companies) will scrutinise the documents for the lender before approving a loan. The Legal Team of the Bank does the documentation in-house. This ensures that lenders are not getting involved in a dubious and fraud transaction and it also helps banks while giving out loans based on the genuineness of the documents.

Technical Valuation team carries out Technical Verification of Property. Prior to granting a loan to a lender, the Valuation team physically examines the commercial capability of the property. They Physically examine the property, the condition of the property, value for which the property could be sold, the market rate and the area where the property is situated. This is done to ensure that the bank is able to recover the loan, by selling off the property in an open market, in case there is a default by the lender. For example: If the property is worth Rs. 50 Lakh in the open market, the Bank will be willing to give a loan to the lender for around Rs. 50 Lakhs only. Thus even though the lender fails to repay the loan, the Bank can sell off the property to recover the money. In such a case the Bank won’t fund 70-80 Lakhs for the same piece as it will be next to impossible for them to recover that money.

You should always before buying property check the title and other information regarding the property. With all states now having their own websites and facilities to check property details online, it is easier to assess the ownership of the property.

Power of Attorney in India for Selling Property
Property

Power of Attorney in India for Selling Property

NRIs use Power of Attorney (‘POA’) as an instrument to appoint an agent/attorney to help them sell their properties in India. NRIs find it difficult to come to India and sell their property, and hence, the concept of a power of attorney exists. A power of attorney authorizes its holder to enter into transactions and take decisions on behalf of the actual owner of the property. 

Special Power of Attorney for Purchase of Property: India Format

You can find the format of a power of attorney here,. You should draft a POA on a green stamp/bond paper or a non-judicial stamp paper of INR 100. The NRI should authorise the power of attorney himself and the Indian Consulate in the country of residence. Once authorised, the NRI should send a power of attorney to the sub-registrar’s office and relevant witnesses, identity proofs, and photograph copies.

You should include certain clauses in a PoA to ensure that no loopholes could pose a threat to the NRI/owner/principal in case of a dispute. Some of these clauses are:

  • Full details of the parties, including relevant information such as name, age, address, occupation, etc.

  • The reason for entering into this agreement (sale or purchase of property by the NRI in India)

  • Termination clause to ensure that the power is not misused beyond the fulfillment of the objective of this agreement.

  • The clarity in the specific powers granted to the agent and the attached responsibility.

Power of Attorney by NRI to Buy Property in India

NRIs often purchase property in India for investment purposes or to have a visiting home/holiday home. However, most NRIs do not have the time to come to India to execute the Sale Deed/Agreement for Sale transaction. Therefore, a power of attorney for purchase of property by an NRI facilitates sale transactions legally. Moreover, NRIs would require a special power of attorney to execute a transaction. Through a general power of attorney, no NRI would be able to sell or purchase property in India. 

A special power of attorney gives an agent the power to act on behalf of the principal (NRI) for a specific matter, including but not limited to taking legal or financial decisions. 

To have an effective POA for the purchase of property, an NRI must sign the POA agreement in the presence of a consulate officer or Notary in the country of residence. Further, such consulate officers must attest to the agreement for it to be valid. The NRI should register the POA under the Indian Registration Act, 1908, to make it valid and enforceable in India.

People Also Read This: Get Your Power of Attorney Carefully Drafted by Expert Lawyer

Power of Attorney to Sell Property in India

Power of attorney to sell property in India also requires authorization from the country of residence. Let us examine a few countries of residence and the procedures related to power of attorney therein.

Australia:

An NRI must book an appointment with a Notary in Australia where the NRI and two witnesses and the Notary officer would sign the POAon a green stamped or bond paper. 

After notarizing the POA, you would send it to the Indian Consulate, who would stamp it with an Apostille by the Department of Foreign Affairs (DFAT) and then send it back to India to the appropriate authority duty charges prescribed by the local government.

Then, you can register the agreement, and the transaction can legally take place.

UK:

There is a 3-step process when an NRI from the UK wishes to purchase or sell property in India. 

Firstly, an attorney from India must draft the POA according to the needs of both parties and according to the applicable laws (ICA, 1872, or RERA, 2016, etc.) in India.

Secondly, the POA must be sent to the place of residence, i.e., the UK, where you can get it notarized by a Notary Public for a charge between 20 to 100 pounds. The concerned NRI, along with two witnesses and the Notary, will have to sign the document. After notarization, the Indian Consulate, located at the Indian High Commission, London, would attest the same. 

Thirdly, the document can be sent to the attorney in India where registration happens, and the transaction can legally take place.

USA:

There is a 3-step process when an NRI from the US wishes to purchase or sell property in India.

Firstly, an attorney from India must draft the POA, and the NRI and two witnesses should sign this agreement. The notarization of the document should be done in the presence of a Notary Public. Further, it must be sent to the Indian Consulate for his/her signature. An appropriate fee would be charged for attestation, notarization, etc.

Secondly, the POA must be sent to the Secretary of State for an apostille from the Department of State, Authentications Office, which will use the Seal of the US Department of State to authorize the document's validity will be sent overseas.

People Also Read This: Legal Considerations to Keep in Mind Before Selling Your House

Thirdly, the agreement shall be sent to the attorney in India for the legal execution of the transaction.

The POA is a powerful document and must be drafted between two parties that trust each other. The agent must be selected with caution as the agreement would transfer significant power to decide the owner/principal to the agent. A poorly drafted agreement that does not consider the risks involved (such as consideration, percentage of share between co-owners, obligations of agents, the role of decision making by an agent, etc.) would cause litigation which would severely affect the parties.

Permission for Sale of Minor Property
Property

Permission for Sale of Minor Property

The Indian Majority Act, 1875 specifies the age of majority in India. The Act states that the age of the majority in India is “18 years,” and any individual living in India who is below the age of 18 years is a minor. Minors cannot enter into contracts until and unless their guardians enter into contracts on their behalf. Let us find out how one gets permission to sell a minor’s property. 

 

Can a Guardian Sell Property?

 

 

Section 8 of the Hindu Minority and Guardianship Act, 1956 identifies the powers of a natural guardian or legal guardian. Clause (1) states that the natural guardian has all the power to do any act necessary, or reasonable, or proper in the eyes of the law for the sole purpose of such an Act is beneficial to the minor that it shall protect the minor or minor’s estate. 

 

 

Therefore, it is clear from the above provision that a natural guardian can sell the minor’s property (the Act) for the sole purpose of benefiting the minor.

 

 

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Can a Guardian Sell Minor’s Property?

 

 

The Supreme Court in Saroj v. Sunder Singh & Ors. held that a guardian cannot sell a minor’s share in the property without the permission of the appropriate Court. Furthermore, section 8(2) of the Hindu Minority and Guardianship Act, 1956 states that minors’ immovable property cannot be mortgaged, charged, or transferred by sale, gift, exchange, or in any other mode without the previous permission of the Court.

 

 

Further, Section 8(3) states that if any natural guardian disposes of any immovable property in contravention to clause (2) of Section 8, then such a sale would be voidable at the option of the minor. However, the said minor can challenge such a sale only within the limitation period, which shall begin running against them after they attain the majority.

 

 

Further, suppose a minor, after attaining majority, wishes to set aside the sale deed as such property belonged to the minor. In that case, such a suit must be filed within the limitation period prescribed under Article 60 of the Limitation Act, i.e, 3 years after attaining majority. 

 

 

Can a Minor Purchase Property?

 

 

For a minor to purchase property in India, he or she must enter into a valid contract of purchase and sale of such property. This agreement is known as an ‘Agreement of Sale’. Every agreement shall be a valid contract in India if it fulfils the criteria under Section 10 of the Indian Contract Act, 1872. Further, Section 11 highlights competent to be a valid party in any valid contract in India.

 

 

Section 11 states that every person of the age of majority will be competent to enter into a contract if they are not barred by other conditions mentioned in the section. Therefore, a minor, i.e, anyone who is not of the age of majority (18 years), will not be competent to enter into a contract. Any agreement entered into by a minor will be void ab initio (void from the beginning) the eyes of the law. 

 

 

People Also Read This: Inheritance Rights of Grandchildren in India

 

 

The provisions under the Transfer of Property Act, 1882, especially section 6 and 7 of the Act do not bar a minor from contracting. However, from the conjoint reading of the above two Acts, it can be deduced that a minor can be a valid transferee and receive property. 

 

 

A minor can acquire property through the hands of either his/her natural guardian (mother or father) or through a guardian appointed by the appropriate Court in the absence of such natural guardian. In such a case of acquisition, the purchase of property would be valid. 

 

 

After valid purchase, the natural guardian can register the property in the name of the minor under Section 35 of the Registration Act, 1908. However, the execution of such registration shall take place before the appropriate Court’s permission after satisfaction that the property acquired was legal and valid.

 

 

A minor can acquire a property by way of gift also. Here, there is no need for the intervention of the law, Court, or guardians of the minor. The reason for the same being that in case of a gift, acceptance by the donee is the only required to make it effective.

 

 

Lastly, a minor can acquire property using inheritance, be it intestate or by way of a will. In case of ancestral property of a Joint Hindu Family, the minor (both son and daughter, since 2005) will receive an equal share in the capacity of a coparcener after the death of the last holder of the property.

 

 

Hence, a minor, though not competent to enter into a contract can sell property through his guardians. A minor can also receive property through the means listed out above.

 

Things to Keep in Mind Before Buying A House
Property

Things to Keep in Mind Before Buying A House

Buying a house is one of the most crucial decisions for people in India. In India, investments in real estate and property are a luxury. A person buying a house may need to give up their entire life savings. Or, they end up being burdened with hefty home loans.

 

An investment in buying a house is not something you can easily alter or rectify. Therefore, you must keep in mind a few essentials. This way, you can avoid getting deceived and losing your hard-earned money. Also, what would happen if you did not desire such a house in the first place?

 

Your Budget

 

The first thing you should focus on is your budget. The easy availability of home loans has made people push their budgets. Instead, you should be mindful of setting up a budget to have no unwanted financial crisis in the future.

 

After setting up your budget, you can move to shortlist the available properties. Shortlisting the best possible property will be perhaps the most important task for you. Many key factors lead you to your ideal property. Factors such as availability and supply of key amenities like power and water supply, the infrastructure of the area, and the seller's goodwill are of prime importance.

 

Home Loan Eligibility

 

Secondly, look into your eligibility for a home loan. There are various factors that reduce your eligibility for a home loan. Before financing the loan, the financing agencies will look into your credit score. This determines your repayment capacity, existing loans, income, and age.

 

Many financing agencies provide a home loan calculator on their websites. You can use them to check your eligibility. Banks and financing institutions are also concerned with the reputation and goodwill of the builders. If they are not satisfied with the builder, they will not process the loan.

 

People Also Read This: Property Registration Online Procedure and New Rules in India

 

Verification of Documents

 

People usually rely on their brokers to verify the documents related to the property. This is a bad practice because you can be misled by your broker (either intentionally or unintentionally). Therefore, verifying the property document yourself is important.

 

You should conduct the necessary due diligence in verifying the title documents of the property. Documents such as any government order for grant, gift or sale deed, succession certificate, etc. will form the evidence for transfer of the property over the years. Therefore, understanding the nature of the title is also important.

 

Background Check of the Seller

 

While buying a property, you cannot overlook the identity of the seller. While buying a property, people are often interested in just the property. So, verifying the credentials of the seller is not a top priority. But, you must look into the authenticity of the seller. E.g., Check whether the seller has government authorization to sell the property.

 

In the case of joint property, identify all the owners involved. Identifying whether the seller is a company, firm, partnership firm, etc., is essential to confirm their authority to own and transfer the property. Verify all the documents that ascertain the seller's identity (Aadhar Card, PAN details, Income Tax returns, etc.).

 

Awareness about the type of Land

 

Be aware of the land use pattern. Many state laws in the country prohibit the purchase of agricultural property by non-agriculturists. However, with increasing urbanisation in the country, non-agricultural land use is at an all-time high. As a buyer, be aware about the master plan of the project and ensure that the property is being developed per the zoning plan.

 

RERA compliance

 

Don't overlook RERA compliance while buying any property. You should only engage with those projects which are registered under RERA. Make sure that all the essential provisions under RERA are adhered to.

 

Moreover, try to find dig-up any cases or complaints filed against the developer on the official web portal of RERA (each state has its website). Along with the developers, real estate brokers should also be registered with their respective state RERA. Therefore, only appoint a broker after verifying their RERA registration number.

 

People Also Read This: Legal Considerations to Keep in Mind Before Selling Your House

 

Property Insurance

 

Property insurance or home insurance is indispensable. Insurance will cover your expenses in case of any damage or loss. Moreover, it will also protect you from any third-party liability arising from any sort of injury faced by such a third-party on your property. Home insurance minimizes the financial burden in such cases.

 

Ideal home insurance will also be applicable on the contents of your property, which includes: electronic appliances, furniture, and even jewellery. You can claim such insurance even if there is any theft or robbery. Therefore, you should insure your property as it provides economical protection and covers potential risks.

 

Physical Survey

 

A physical survey of the project site is of equal necessity. In today's era, you can be fascinated and influenced by the advertisements surrounding you. However, more often than not, these advertisements lead to misconceptions about the project.

 

Therefore, make it a point to mandatorily visit the project site before proceeding with the purchase. You should verify the basics, like the exact extent and measurement of the property. In the case of the Land on which the property is built, you should identify and demarcate the boundaries.

 

Conclusion

 

Those mentioned above are just a few basic due diligence methods. You must understand that the points mentioned in this article are by no means an exhaustive list. You, as a buyer, should conduct an elaborate due diligence process to ensure that your investment is viable.

Ways To Resolve Property Disputes In India
Property

Ways To Resolve Property Disputes In India

Ways To Resolve Property Disputes In India

One of the most common legal disputes in India is property disputes. Property disputes related to property division, property ownership, sale and purchase of property, and other similar concerns. Property disputes among family members, especially brothers, are a common sight in India. In the absence of awareness about the settlement of disputes, most property disputes end up in courts. Lack of proper title documents and court delays often prolong property disputes. Through this article, we shall explore the various aspects of property disputes in India.

 

Property Disputes in India

India has a large number of pending property disputes. Property disputes can arise among family members and sellers/purchasers of land, and even landlords and tenants. Laws that govern inheritance are applied when property disputes occur among family members. The Act that governs property disputes in India is the Transfer of Property Act. This Act governs the transfer of property in India and forms the legal basis for determining and resolving disputes. While the moveable property is also subject to contention, most of the property disputes in India are related to immovable property such as land or a house.

 

Many case laws have been passed deciding the contours of property law in India. The holding of such case laws is often important in determining and resolving property disputes in India. One such landmark decision was Vineet Sharma v. Rakesh Sharma, where the daughters were given the right to property as a coparcener for the first time. This clear laying down of the law became the basis for many pending disputes wherein sisters claimed a right in the property and the brothers did not agree to the same.

 

Similarly, in Poona Ram v. Moti Ram, the Supreme Court was of the view that settled and established possession of land is required for possession to qualify as ownership.

The courts, through numerous decisions, have laid down the defining features of property law in India.

 

People Also Read This: In the middle of land dispute, a land acquisition lawyer can be your saviour

 

How to Resolve Property Disputes in India

In India, there are two ways through which you can resolve property disputes:

  1. Settlement
  2. Litigation

 

Settlement:

You can choose to resolve your property dispute through settlement if family members are involved in the property dispute. The settlement involves all the stakeholders sitting across the table and mutually deciding how the assets/property would be divided. This involves the division of not only immovable property but also moveable property such as jewellery. Sometimes, families bring in a neutral third party to maintain discipline during the process. Such a neutral third party can help the parties arrive at a mutually beneficial outcome. Once a mutual division is agreed upon by the family members, you should draw up a settlement agreement. All family members should sign this settlement agreement.

Settlement saves the costs of hiring a lawyer and court expenses. If possible, in the first instance, it is always preferable to resolve through a settlement. If a settlement is not possible or if settlement fails, then you can approach the courts.

 

Litigation:

Litigation is nothing but approaching the courts to resolve property disputes. This involves lawyers, court costs, and, more often than not substantial amount of delay. Typically unrelated parties resort to litigation in the first instance. Litigation involves court processes and procedures and may take a long time to resolve the dispute. Go for litigation only if you have all the documents, including the title deed, and your lawyer advises you that you have a strong chance to win. Sometimes courts order the parties to settle outside court. This is a court-monitored settlement.

 

Property Disputes Among Brothers

Property disputes among brothers are one of the most common property disputes in India. In India, the conception exists that it is the male child that inherits the property. But the problem arises when there are two or more two male children. Brothers often squabble among themselves regarding property division, especially if the parents have not left a will. Such disputes are resolved by applying the applicable inheritance and succession laws.

Property disputes in India account for more than half of the pending caseload. Property laws and case laws around them govern property disputes. Despite having clear-cut laws, such disputes go on for years. Land being a valuable asset in India, the scope of disputes arising is more. Hence, you should always have drafted agreements before you enter into any property transaction. Write and register wills in your life so that your children do not engage in property disputes. Paperwork always reduces ambiguity and hence the chances of disputes.

People Also Read This: Find Property Dispute Lawyer In India Near You

Understanding RERA and How to File a Complaint under RERA
Property

Understanding RERA and How to File a Complaint under RERA

For a long time, the real estate sector had no regulation. If the consumers faced delays, there was no recourse. Most buyers were at the mercy of the builders as court cases would drag on for long. With the coming of RERA, a proper complaint mechanism has come into existence. Let us see how one can file complaints under RERA.

 

RERA Complaint Against Builder

RERA imposes certain obligations on the builder or the developer. As a homebuyer, you have certain rights under RERA. If the builder fails to discharge his obligations or violates your rights, then you can file a complaint against the builder. Under RERA, a homebuyer can, in addition to the builder, file a complaint against the following: 

  • Promoter

  • Real estate agent

  • Contractor

  • Intermediary

People Also Read This: What is the RERA Act?

If any of the above are found guilty of contravening the RERA, they would have to pay heavy penalties. Key penalties in the RERA are: 

  • Non-registration with RERA attracts a heavy penalty of up to 10% of the project's estimated cost or imprisonment up to 3 years. Sometimes, RERA may impose both imprisonment and a fine. 

  • Furnishing false information also attracts 5% of the estimated cost of construction as a penalty. 

Hence, heavy penalties may be imposed on the builder, promoter, real estate agent, etc., if they are in non-compliance with the RERA. 

 

RERA Complaint Registration

A homebuyer should have the following details if they wish to register a complaint against the builder: 

  • Details such as name, address etc. 

  • Registration number of the project and the address where it is situated. 

  • The response of the builder. 

  • The relief the homebuyer is requesting.

A buyer may file a complaint with the RERA Authority for any violation or contravention of the provisions of the RERA Act by a builder, developer, promoter or real estate agent. Conditions under which a buyer can file a RERA complaint include:

  • Delay in Possession: If a builder delays delivery of possession of the property, the buyer can file a complaint against the builder to get immediate delivery of possession or get a full refund along with interest.

  • False Advertisement: A complaint can be filed against the developer, promoter, and even the endorsers if false advertisements misled a buyer based on which he/she decided to deposit a sum with the promoter.

  • Advance Payment: A builder can ask for only up to 10% of the cost of the building, apartment, or plot as advance payment. If a builder asks for more than 10%, the buyer can file a complaint against the builder.

  • Improper Registration of a Project: All projects must be registered under RERA. If a builder has sold or is trying to sell an unregistered project, the buyer can file a complaint against the builder.

  • No details about the Project: All details regarding the project including project plan, layout, and government approvals need to be updated on the RERA website. One can file a complaint if a builder or developer doesn't adhere to this provision.

  • Structural Defects: In case of any structural defects in the workmanship and quality of the services, the promoter will have to compensate the amount paid by the allottee. If not compensated, the buyer can file a complaint.

  • Ownership Transfer: A promoter cannot transfer majority rights to any third party. In case he/she is found transferring majority rights to a third party without the consent of the two-third majority of allottees, one can file a complaint.

Typically, a homebuyer has to file a RERA complaint form along with the requisite fee to register his/her complaint. You can follow the given steps to file a complaint under RERA:

  • You can file a RERA complaint form along with the requisite documents and the fee before a RERA or an adjudicating officer. 

  • Once the authorities receive the complaint, they constitute an inquiry bench to hear both the parties involved. 

  • The matter is typically settled within 60 days of the filing of the complaint. 

 

People Also Read This: RERA Registration Process

 

RERA Online Complaint filing

Many states like Gujarat, Maharashtra, and Karnataka now provide online complaint filing under RERA. The method of filing an online complaint almost remains the same in most states. However, the procedure, applicable fees are different.

To register a RERA complaint online in Gujarat, a complainant must comply with the following steps:

  • Go to the Gujarat RERA portal. On the home page, there will be a link for complaint registration.

  • Once you click on the link, you will be redirected to another page to provide relevant details of the complaint. These details are the same that one would provide in a physical complaint.

  • After filling in the personal details like name, address, contact details, etc., there will be an option for the complainant to attach supporting documents.

  • The complainant must pay a registration fee of Rs. 1000 to be able to submit the complaint. One can avail of any net banking or mobile banking facility for payment. After payment, one has to click the Submit button to successfully register the complaint.

In order to register a RERA complaint online in Maharashtra, a complainant must comply with the following steps:

  • Go to the Maharashtra RERA portal. On the home page, click on the Online Application Menu.

  • One must first log in to be able to access the online complaint form. Therefore, the complainant must create a new registration with an appropriate username and password.

  • Once registration is completed, the complainant must file his/her personal information to proceed with the complaint.

  • After providing relevant personal details, the complainant should find and select Add New Complaints. Here, the complainant would be able to fill in relevant details of the complaint.

  • The complainant must pay a registration fee of Rs. Five thousand to be able to successfully submit the complaint.

For all online portal complaints, once a complaint is successfully registered, both the parties would be called to express their facts and figures surrounding the dispute. The RERA will listen to both parties and will give a verdict on the merits of the case.

The aggrieved party would be given the option to challenge RERA's decision if they are not satisfied with such an order. The aggrieved party must challenge RERA's decision before the High Court.

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