Real estate has always been full of controversies and problems. Legal experts of Delhi NCR market from KYC and Associates with the speciality in RERA- Mr. Kailash Chand Yadav and Mr. Randhir Kumar Jha, shared their views on various aspects of real estate. They talked about the solutions to the problems that buyers are facing across India.
What are all advices legal experts give to consumers or the buyers who come for the help?
Mr. Jha: We advise the consumer to check all the legal aspects like NOC, plot allotment from authority, whether payment has been made or not and also suggest them to look for other legal agreements if any.
Buyers don’t not get their property even after going through all the legal routes. So what’s the solution to this?
Mr. Yadav: It differentiates from builder to builder. The market is full of good and bad builders and influencers. This mixed bag makes the situation more difficult for a buyer to trust one. The new act, RERA has confused buyers than ever before.
I suggest before buying any property, buyer should check the payment procedures, different licenses, and each and everything related to the property. These beforehand checkings can save buyers from future problems.
What are the laws under RERA where buyers can feel protected?
Mr. Jha: If The Real Estate (Regulation and Development) Act gets fully implemented then major problems will be solved. Under RERA, builders’ have to register themselves and upload each and every document on the website like NOC, payment of authority etc.. Also builders need to maintain an account with 70% of the total money received from the buyers. This amount will be withdrawn whenever required for construction after getting approval by engineers and chartered accountants of builders. It’s a plus point for both buyers and builders.
When the builder is not responding then who is answerable to buyers and what is the legal obligation for it?
Mr. Yadav: We believe in thoroughly inspection of any builder or agent to find out how authentic the person is. It’s buyers’ duty also to check the agreement between the company and the agency of the agent.
Can the sale deal document between buyer and builder change the whole case?
Mr. Jha: Sale deal acts as a significant document for a buyer if he is planning to purchase any kind of property. In some cases, when the sale deal is in favour of the builder, then the buyer should directly reject it.
If we talk about some controversial real estate brands like Jaypee, Amrapali, AN Buildwell etc. buyers are in confusion who is more liable. Does RERA have any solution to this? And also, how buyers can get benefit from builder buyer’s agreement?
Mr. Yadav: Answering your first question, as big brands like Jaypee, Amrapali have failed to fulfill their commitment made to the buyers, so they come under RERA laws.
There were so many loopholes in Jaypee’s projects. They have been declared insolvent but the Insolvency and Bankruptcy Code does not liberate them from their obligations.
In AN Buildwell case buyer will get their rights but that will take some time.
Builder buyer agreement is the most important agreement in real estate. Whenever a buyer decides to purchase a plot or property, the draft should be ready according to buyer’s requirement and then only he/she should sign it. The agreement contains really important points. One should not ignore it.
Note to buyers: Check all the possible aspects before making purchase decision. Be-aware before investing!