Showing posts with label RERA. Show all posts
Showing posts with label RERA. Show all posts

What is the time frame for RWA to take over apartment from builder & how to go through the process

What is the time frame to handover the finished apartment to Resident Welfare Association to take charge of owner's welfare like maintenance & administration?

I was searching for the concrete evidence and rules for time frame for taking over of the apartment from the builder of the apartment while the builder is inordinately delaying for their vested interest OR otherwise, time frame for handover of completed apartment to the Resident Welfare Association by the builder. 
Builder to handover apartment

Few statement & search result says that builder has to handover the apartment to association on completion of 80%  sale of flats , few says 60% of sale of flats and magicbrick article says 50% occupation of flats..etc

Though there is no specific time frame is available to authenticate & state to state it is differing, I found some references and direction from RERA to builder to handover the apartment to association.

The RERA Chapter III, sections 17, clause 1 and 2 says about hand over of the completed apartments to the resident welfare association as below

17. Transfer of title.—(1) The promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and handover the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws: Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate. 

(2) After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to handover the necessary documents and plans, including common areas, to the association of the allottees or the competent authority, as the case may be, as per the local laws: Provided that, in the absence of any local law, the promoter shall handover the necessary documents and plans, including common areas, to the association of the allottees or the competent authority, as the case may be, within thirty days after obtaining the 1 [completion] certificate

Hence it is clear that the builder must handover the common amenities to RWA in 30days from date of completion certificate or in 3months from the date of occupancy. Transfer of title can be interpreted as handover.

If it doesn't happen, check your agreement. Builder would have charged you for maintenance of the apartment and would have indicated time frame like 6 months and so on. That stands good in worst case

How to approach the builder who didn't handover?

Association formation With Builder's consent

While most of the builders wont involve, they will facilitate the situation to form a Residents Welfare Association(RWA). 
Read your construction agreement whether builder has to give his consent to form association. Though it is not legal, getting a consent will have transparency. Reputed & good builders may come forward to call all flat owners in a set date to facilitate the association formation. In that meeting, RWA will be formed and volunteers will be nominated by whoever take the lead, probably the builder .
In the above circumstance, builder will do all formalities on the request and handover will be done based on mutual discussion with association members
This is IDEAL condition

However, if the association is formed without builder's consent, how can the association take over of finished flats 

How to form Resident Welfare Association Without Builder's consent

This is the general condition of almost all the apartments in India. Builder may not handover to association due to the following points.
  1. Most of the flat buyers are investors and don't bother about handing over
  2. Very less owners occupied the flats and hence no pushing power
  3. No volunteers or none is interested in welfare of community
  4. Builder has vested interest ; either may do some business or may enjoy benefit like corpus interest, construction pending activities at owners MMC cost
  5. Complicate agreement clause which prevents association formation (Read how to check construction agreement by yourself)
  6. Volunteers effort on association formation & active involvement of other owners were not seen and builder is taking advantage of it (which should be avoided whoever reads this article & spread the awareness among your owners group)
The following is the step by step process to form the association without builder's consent & not required too
  1. If your builder didn't kick start association formation for the period indicated above; that is, 50% of the flats occupied or 80% of the flats sold or 3months from the date of completion certificate from respective authority, affected/residing owners can gather together & form the association
  2. Minimum 7-10 volunteers are available to represent welfare of owners (This depends based on the act in your state, Example 10 members required as per Societies Registration act 1860 in Maharashtra, 7 required as per TN Societies Registration Act 1975)
  3. Organize a whatsapp group for residing owners & non-residing owners may also be added if known to get support 
  4. Call all owners for a meeting with agenda, discuss among yourself about the Executive Committee Members (President, secretary..so on). Make a minutes of meeting, this is a basic & mandatory document
  5. Draft your bylaw, take the help from established associations bylaw for drafting your apartment bylaw as established apartments would have made several revisions based on Registrar of Societies & Auditor observation
  6. Register your society with Registrar of Society (Registration authority may change state to state) & obtain certificate (2-4 weeks)
  7. After receipt of certificate, intimate your owners, Builder, Local Panchayat, Police station..etc stating that you formed & registered and will be taking charge from builder in stipulated time frame (tentative)
  8. Send series of reminder letter till builder come forward with a plan of handing over. Worst case, send a lawyer notice indicating RERA sections with take over target month & inform it to association notice board
  9. Meanwhile, apply for PAN in association name (mandatory to open bank account) and open a bank account in nationalized bank
  10. Appoint a Manager 2-3 months prior to taking over and insist builder to pay his salary; worst case his salary can be diverted from residing owners Monthly Maintenance Charges (MMC)
  11. Request and instruct all residing & non-residing owners to start paying MMC account from the target month you set to the builder
  12. Appoint a facilities management contractor to take are of Maintenance, Security, Housekeeping in phased manner to match with your taking over of collection of MMC
It may not be that easy from the observation we did across various Welfare associations but this cannot be avoided. As soon as the formation of RWA, recruit a team to not to make tired of existing RWA Executive Committee Members. Owners must support fully without conflict to the association EC members

What to check in construction agreement before buying your home? How the Builder Buyer agreement should be as per RERA?

6 minutes read

Why construction agreement review is important?

builder buyer agreementWhen we decide to buy a home first time, it is a milestone of our life and we must do every possible analysis at our end before finalizing a deal with the builder. 

First of all, I would like to express that I was optimistic when I was signing the agreement and things changed after delivery schedule was not kept up by the builder. Hence, would like to give you some tips with pessimistic approach & extra caution to safe guard your money, time, interest & dream

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If you have not decided which one to buy, my video with FREE excel analysis based on my experience may throw some lights to help you  "How to decide my home of my interest" . 

If you already decided and would like to focus on key points in construction agreement, continue reading 

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Most of us will not spend our time to focus on Builder Buyer Construction agreement in the beginning as every one of us, "buyer" will go with good intention of buying a dream home with high morale/ethic and we will strongly believe that the same will be reciprocated by the builder too. However, the reality is bitter in most cases as I come across.

Few buyers will succeed based on the selection of builders with good track record ( remember, it is not based on Media ads..etc but the core value like completion in time, customer satisfaction, quality in long run). But few of us will fail in any one or many factors which were presented through lucrative marketing tactics and foul promises while buying your home. 

Most of the builders may not have the intention to dishonor your agreement as they have to be in business for long time, however, builders with less professionalism, ethic will fail at a point of time after which they may be least bothered about the buyers position. 

I also analyzed various facts as I said in my youtube channel and finalized the project of my wish, however my mission failed due to the faith I had with the builder/promoter that "Builder will not dishonor the agreement" which should not be the case for you. 

The agreement comes in place while 2 entities/individual parties agree together for set of rules, conditions, procedures, timelines & cost to achieve/render a desired target of service/business.

Alright. If there is a Builder Buyer construction agreement, will the builder deliver. Ofcourse Yes & No

Though RERA comes handy to help you to get justice as per the agreed facts & fair trade practices, getting legal remedy is a long way as builder who has money and muscle. Builder will spend their money more than required and will go up to all level courts to make you tired. Going in group or through association will help for some extent, however, builder will use all his sources to divide, confuse, make restless

Hence, we must be proactive to avoid complications & bitter life at later stage with respect to all contractual conditions like payments / defaults, amenities, quality of construction, delivery date & hidden agreements which are key. After analyzing, if you are satisfactory, you select the project or else step back from that project

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If you are buying flat for mere investment, you may check this article to analyze whether real estate really works now as a bright investment option "Why to buy a home?" with the help of FREE excel sheet. 

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How a construction agreement must be as per RERA?

RERA has defined how the builder buyer construction agreement should be as per RERA act 2016. There were lot of unfair trade practices in construction agreement which were highlighted by Supreme court of India and finally driven to make a model construction agreement to reduce such unfair trade practices in construction agreement  filed in various courts (Download Consumer protection act 2019 and search "unfair" in PDF to see what are all unfair trade practices)

RERA has made model construction agreement for easy & ready reference of buyers to cross verify without help of an attorney

  1. You can refer RERA model construction agreement here
  2. You can refer RERA act 2016 here

How to check builder buyer construction agreement by yourself? 

Getting an Attorney help for legal opinion on the construction agreement may be tiresome if you don't stop at right lawyer who is professional in property cases. In my case, I relied on my known source civil lawyer and I could not get value addition, I recommend you to find out a property lawyer who already dealt such apartment or construction agreement cases and offer them nominal fees & reasonable time to review it. Based on my experience, I collected key information from model agreement and respective RERA act and compiled here with my past experience for easy reference as key check points of a construction agreement or builder buyer agreement. 

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First & foremost, ensure that whether your project is registered with RERA and builder have all legal rights & necessary approvals from authorities to build an apartment

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Apart from EC and Registration of project with RERA, the followings are nut shell of builder buyer construction agreement which can be checked by yourself before buying

builder buyer
Download - FREE in excel 

1. Cost of the apartment - Cost of the apartment to be legible in agreement with break up and milestone payment may be in annexure as per RERA agreement model, Point no 2

2. Mode of Payment - Should by thru RTGS/DD/Cheque, NRI Foreign payment should be as per act FEM 1999. More than 10%, no advance payment must be made without any agreement as per RERA agreement model, Point no 3

3. Payment delay, Late penalty from builder & compensation by builder - Normally there will be hefty interest charges for the delayed payment from your side but at the same time, compensation for builder project delay will be meager which is unfair trade practice. There should be a reasonable interest & compensation at both sides as per Consumer Protection act 2019, sl no 46, point ii, page 8. Also read sl no 24 of NCDRC judgment

4. Sale deed of UDS - Conveyance deed must be registered along with UDS  within 3 months of the issuance of occupancy certificate as per RERA act, chapter II,17

5. Period of completion - Completion period as the essence of the agreement, must be legible in agreement with grace period which is maximum upto six months as per RERA agreement model, Point no 4. Normally completion period may vary from 18 to 48 months which is subjective 

6. Force Majeure - Force Majeure if any must be informed by the builder in written to the allottee along with extension of time. If allottee doesn’t agree extension of time, the refund must be done within stipulated time and that time must be indicated in agreement as per RERA agreement model, Point no 4, RERA act, chapter II,6

7. Amenities & prospects - Must be as per commitment in brochure, notices, marketing material, model apartment and advertisements and it shall be added in annexure for transparency as per RERA act chapter III, 12

8. Apartment Association - Builder must enable formation of association within a period of three months of the majority of allottees having booked their plot or apartment or building & Every buyer of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the buyers, or a federation of the same as per RERA agreement model, Point no 6 & RERA act chapter III, 11.4.e

9. Monthly Maintenance cost - Buyer & Builder agrees for maintenance of amenities for specific period till handing over to association and statement of accounts to be submitted to association while handing over as per RERA agreement model, Point no 6 & RERA act chapter III, 11.4.d

10. Defects Liability - Builder should rectify the problem arising from manufacturing, design failures, workmanship till 5 years on the complaint of buyer and the complaint must be addressed by the builder within 30 days of receipt without any charges as per RERA agreement model, Point no 6 & RERA act chapter III, 14.3

11. Construction quality specifications - The builder, at the time of the booking and issue of allotment letter has to provide sanctioned approval drawing, plans & specifications as per RERA act chapter III, 11.3 and this is mandatory for future reference. This includes specifications on door, window fittings, wood work, tiles, bathroom fittings, electrical cables & fittings, whether 3 phase or single phase, if it is 3 phase, whether it is with change over switch, concrete quality, mason work, loft (if not mentioned in your drawing)

12. Progress status - The builder should submit the progress status to RERA by every quarter. If you, as a purchaser didn’t get any status, you can visit respective RERA site and refer status at par with his commitments and you have all rights to with held the payment for non-compliance of respective stage/progress. Check whether builder restricts to see the progress in site and that should not be.

13. What is Buyer consent in agreement- Builder will indicate all his liability as a builder consent here & there, however there will be thin line of hidden points in Buyer consent of the construction agreement wherein he will include unfair trade practices and you have to take legal opinion for damn sure as I am facing few of these points which will make your family life miserable. Check whether your builder has indicated any point like "builder will use unsold flats as service apartment", "they will retain some flats and let out for lease", "they will use the apartment road to access their property"

The above conditional points may be taken granted and "residential apartment can be used for commercial purpose" in future which will ruin our social & family life within the campus. Better to avoid that project.

When you or your attorney come across major doubts and clarification, send a mail to your builder and insist them to clarify it in agreement transparently. If they don't agree to mention in agreement, that is your first caution to step back from the project/builder. Few small clarification through mail may be kept for future reference.

If you would like to know more from my experience, comment below so that I will share my experience and clarify to my best

How to use RERA website before buying flat House property, How to get maximum out of RERA website

Background of this article 

I am a Home buyer. I earned money in bits & peace's. I paid my initial amount after disposing my family jewelleries like most middle class and there after took Home loan. I bought a flat at Chennai in 2012 and for various reasons, builder delayed the handing over and finally it was handed over by 2018 without completing many amenities. I googled many, went deep into the details and I would like to pass on my experience to common people who are suffering like me.

Whether CREDAI/CMDA are to be checked?

Earlier, there was no RERA to take care of buyer and the CREDAI which was an volunteer association of all builders, were facilitating & protecting the buyers rights. However, as violation were keep on raising, government has decided & insisted for autonomous body which is RERA, Hence CREDAI has no importance now

Also CMDA is a planning and approval authority of Metro & building plan, stage inspection (wherever required if any), issuing completion certificate. It is only an authority which don’t control the timelines, entire quality deviation (they just focus on macro level with respect to approval plan)

In my opinion, only CMDA approval of building design is required and further ,they may not focus consumer perspective. 

Who else Control the Quality – ONLY YOU and your apprehensions if any can be taken up with RERA

Why RERA?

How to use TNRERA website
Before Buying an apartment, it is very important to check the builder’s credibility through your network, their previous completed project’s quality, schedule efficiency (Handing over date with Committed date) which are crucial in Property buying. After paying our initial amount to the developer/builder, our signature in single sided agreement may be taken as granted by the developer for their business convenience, resulted in huge legal cases in all level of courts, created impact on judicial system and hence Government has made RERA for each state.

Why to Check with RERA ?
-To check the genuineness of the project & builder
-To check builders schedule efficiency & progress status as committed
-To check builder has any violations
-To check complete history of your building approval records, status and tentative target date

Before Buying a flat, what to check in RERA website

(Note- I took TNRERA as example and TNRERA is governing Tamilnadu & Andaman and almost all state’s RERA websites will be similar to this system and take the key input in this blog to get maximum out of RERA website)

4 Points to Check RERA are

  1. RERA approval , Project Registration number for respective project, promoter
  2. Comparing the progress of your site visit with last status report in RERA to find absolute progress
  3. Whether your builder has restriction to sell any of property in that project
  4. Any cases filed against your builder/promoter
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First of all, if you have decided to buy a home for investment purpose, I did extensive analysis & posted a video, Why to buy a Home?,  in order to give holistic approach to who wants to either invest or to buy for dual purpose (investment &  own a home). You can use the FREE excel sheet to check which one will work for you

If you don't want to analyze, skip and continue reading
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How to check whether your apartment project is registered & approved by RERA

Visit your state RERA website and click for registered website to look for the project name, you are interested to buy. Your builder would have given the registration details in marketing material in which they would have indicated approval number or year. Search for respective property in appropriate year.

Check the Project status at RERA site

Use Search option & excel file as highlighted in below image if you are confused, to narrow down the result to what you are looking for

search your builder

Even though they indicated approval number, check once again and ensure the approval number, project name, area is matching with RERA website. If you are going for ready to occupy building, ensure the status as “Completed”. Otherwise, you will see another column after approval details as “Project status as on Month”. Take current status of the apartment from RERA, visit to site to calibrate and validate

Note - Builders will get completion certificate well before 100% completion of the project and live-able condition; hence completion certificate doesn’t mean that everything is SET alright. Check Water, Power, STP, Multidepartment store, Gym..etc as it is essential amenities to live and in RERA website, builder may indicate the amenities are completed but actually it may be pending.

4 points to check in RERA approval


Public Caution Notice by RERA- You should not buy builder’s own property declared not for sale/ lease to RERA to avoid legal issues in future and also find any penalty issued to your builder/project to check his credibility

Public caution notice by RERA to avoid buying from builders

Public caution by RERA to not to buy



Public caution by RERA to not to buy

If your apartment project is Returned or With Held with RERA?

If you don’t find approval or if you find contradictory information, collect further data whether it is appearing in other respective pages like Rejected, Withheld, Returned or public caution notice served from RERA and you can intimate to the builder that the details are not matching along with the back up to stop bullying

Project Pending, Withheld in RERA

How to find whether your builder is facing any legal issues with RERA?

Click complaints and check with Before the Authority(Final phase if any party doesn't agree with judgement given by Adjudicating officer) & with Before the Adjudicating officer (First phase), year wise. You can also use search bar with exact phrase like your builder/promoter name, location of site..etc

If you find any complaints with respect to common problem, discuss with builder/promoter on table and understand ground reality and take a legal opinion whether it affects you

Whether RERA is the only gateway to approach default builder?

RERA is a comprehensive solution of your disputes with developer/builder and all cases will be completed in fast track & in minimum timeline, no unnecessary adjournments, no need to wait for 5 years or 10 years. As per judgements displayed in TNRERA website, average time line for a dispute resolution in RERA is 6-12 months and hence the Deceased Home buyer get speedy resolution from RERA

All builder buyer related cases should be dealt by RERA only. It is advised by the Government authorities as per the section 79 of RERA act that No civil court can handle the builder buyer related cases & disputes, in case if it is mid-way, a request may be submitted to proceeding court thru your lawyer to withdraw and file in front of RERA.  However, as per supreme court, concurrent remedies available as per consumer protection act 2019 provides as additional coverage thru National Consumer Disputes Redressal Commission (NCRDRC) over & above RERA

What is the time frame to sue your builder as per RERA? Whether the complaint against builder is before RERA or after RERA?

Any deficiency with respect to quality of construction, service, amenities indicated in the agreement can be sued up to 5 years as per section 14(3) of RERA act.

Also whether they registered under RERA or not, whether the period is before RERA or after RERA act, they are liable for adherence of law & punishable under this act.

Read a detailed judgement in TNRERA website- Judgements of appellate Tribunal, Appeal no 75, sl no 44  

How to check whether you have solutions for your builder & buyer problem in RERA judgements?

There is no way other than to read each case summary & judgement in respective states RERA website and if you find some reference other states RERA judgments, that can be quoted anywhere in India as reference

Example - Common issues in Builder & Buyer agreement is Amenities. While entering a contract, builder will promise Lucrative Amenities in marketing broacher and later while handing over, many promised amenities will be missing for builder's cost cutting due to his delay or whatsoever may the reason.  RERA strongly insists to fulfil all Broacher promised amenities as builder has promised a dream to his buyer while making an agreement. 

Read detail Judgment in TNRERA website, sl no 45, Appeal no 44, The plea of the promoter that “Brochure mentioned amenities are not Guarantee” is not sustainable.

In case, if you need to verify your structural certificate, building stability, civil related issues, search your state's registered & certified professionals. Tamilnadu Government has provided such professionals details online through CMDA (Chennai Metropolitan Development Authority) with their registration details along with contact details to enable the consumers delight & empowerment. It may be same for other state. 

Based on your conclusion, find a lawyer, probably well known in & around RERA office and process for filing a case. You can catch lawyers name from the judgments while reading it , the more you come across a lawyer name, the more he will have exposure about RERA.

If you decided to sue your builder, you are the sole responsible citizen with morale & have moral responsibility to bring the default builder into lime light and get compensation & justice. Reduce your expectations to join with anyone as you may have to persuade them. However, if you have joint decision with like minded buyers, it is always better to go in unity or thru association( Refer your bylaw for filing a case) as your builder will target you individually. 

Remember that, more the builder targets you, the more he is exposed to his foul claims & failures, hence never mind but keep accumulating builder's every false claim, threats if he gives you like stopping water, not attending your maintenance issues, claim compensation for defaming his brand value..etc. and collect video, photo evidences. Your lawyer will give you expert advice to use them in your case if file.

How to file case in RERA- There are plenty of article available, here is the link for an article at 99acres.com

Hope this article helps you, in case of any requirements, please comment and I will try to give best references & experiences I came across

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Read also 

What to check in construction agreement before buying your home? How the Builder Buyer agreement should be as per RERA?

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