As we all are aware that Real Estate (Regulation and Development) Act, 2016 has been implemented to address the grievances of aggrieved home buyers, but many of the buyers are unaware of the rights and duties provided under the Act. In this article we will be discussing about the same.
One of the most important right which is vested the home buyers is that they are entitles for the Refund and Compensation Section 18 of the Act deals with the same.
The section s specifies “18 (1) If the promoter fails to complete or is unable to give possession of an apartment”
The Act by the way of section 18 clarifies that the home buyers are entitles to seek refund along with interest and compensation in case the builder fails to complete the project or is unable to handover the possession of the unit.
Further the Act under clause a) of section 18 “18 (1) (a) in accordance with the terms of the agreement for sale, as the case may be, duly completed by the date specified therein;”
With the help of this section the home buyers can claim their refund along with compensation in the event of non-completion of project or if the builder fails to handover the possession on the time as mentioned in the agreement signed between buyer and builders.
Further the act under clause 18 (1) (b) “18 (1) (a) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason,”
This means the home buyers have a right to claim his money back if the registration of the builder is cancelled due to any reason i.e. cancellation of registration of the project gives a right to the home buyer to claim his money back along with the interest.
Builder is liable to refund the amount of home buyer along with the interest and compensation as provided under the act without any prejudice to any other remedies available to the home buyers.
Provided that in case the home buyer does not intend to withdraw from the project the builder shall pay the interest for every month of delay till the handing over the possession at the rate prescribed under the Act.
Section 18 (2) specifies, “The promoter shall compensate the allottees in case of any loss caused to him due to defective title of land, on which the project is being developed or has been developed, in the manner as provided under his Act, and the claim for compensation under sub-section shall not be barred by the limitation provided under any law for the time being in force.”
In simplified sense if the builder is developing the project on the land on which he is not having a proper title and due to which the home buyer have suffered a loss of time/money or any other thing then the builder is liable to compensate the same.
Section 18(3) specifies “if the promoter fails to discharge any other obligations imposed on him under this Act or the rule or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act”
In a simplified sense this means that if the builder fails to comply with any of duties and imposed by the Act or under the terms and conditions of the agreement for sale towards the buyer, then he shall be liable to compensate the buyers in the manner prescribed under this Act.
To conclude with this article, it is observed that the builder in case of any default id liable to pay compensation to the buyers as prescribed under the Real Estate (Regulation and Development) Act,2016. Homebuyers are having an upper hand but they are also bound to perform their duties as given under section 19 of this Act and in case the homebuyers do fail to comply with their duties toward the builder then they might loss a grip of their upper hand in claiming compensation for default of builders.
For any Assistance regarding RERA feel free to contact the Author.