With a booming real estate market, new residential and commercial projects are being launched every day. In the last decade or two there has been widespread haphazard growth in this sector throughout the country. Real estate lawyers in India claim that as a result, in this fiercely growing and competitive market, controversies and disputes have also grown manifold. Personal property disputes are also on the rise and the number of people getting affected are increasing by the day.
Focussing on the real estate market first, many real estate developers and builders are defaulting on their delivery promise affecting the lives of the common citizens who invest their life’s savings in buying a house or a commercial space. Besides default on delivery schedule, compliance on part of the builders and developers is also a major issue. A large number of projects get stalled because of non-compliance.
Indian real estate and property laws are quite complex as it involves local, regional and national issues. Also there are a number of statutory bodies that are involved in sanctioning, implementation and execution of a real estate project. Adhering to all these laws is a cumbersome and costly process and many developers & builders try to sidestep them in order to get their projects going and also to keep the cost low. As a result of this rampant flouting of norms, a lot of controversies have started cropping up necessitating the hiring of property dispute lawyers.
Cases against builders and developers has been growing with each passing day and eventually the government took note of it. It made several changes in the existing laws and also brought in new rules and regulations to have a check on this burgeoning real estate market and curb the menace. One of the most important regulations that the government brought in is the RERA act.
RERA act or the Real Estate (Regulation and Development) Act 2016 is an act of the parliament which has the dual purpose of protecting the interest of home buyers as well as boosting investment in the real estate industry. The Act establishes Real Estate Regulatory Authority in each state to regulate the real estate sector and also to act as an adjudicating body for speedy redressal of disputes.The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.
As a major boost to protecting the interest of the home buyers, the Act prohibits unaccounted money from being pumped into the sector and has made compulsory that 70 per cent of the money should be deposited in bank accounts through cheques. Another major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area and not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets. Expert real estate lawyers in India say that any builder or real estate developer found flouting the norms set out in the Act is imposed with heavy fine and punitive action is also taken against them. They may also be barred from doing further business
Another very important development in the real estate sector as far as minimising defaults and disputes is concerned, has been the strengthening of CREDAI. CREDAI or the Confederation of Real Estate Developers’ Association of India, has been in existence since 1999. But it’s in recent years only that it has become really relevant and authoritative. Real estate dispute lawyers say that It has become more proactive in its approach and trying to rope in as many members in its ambit as possible. CREDAI partners with the government and other stake holders in the real estate industry to promote transparency and fair play in the business. To safeguard the interest of the home buyers, the members of CREDAI voluntarily adopt a code of conduct. Consumer Grievance Redressal Forum have been set up to serve as the first port of call for home buyers to register their complaints and have them resolved efficiently and cost-effectively. It is, therefore, advised to the home buyers that they should only enter into any kind of transaction with only those builders and developers who are registered members of CREDAI.
Apart from grievance redressal & dispute resolution through CREDAI and under RERA Act, there are other avenues to address property and real estate disputes and grievances. Real estate or property dispute could be of any kind; home buyer issues to builder harassment, ancestral property or inheritance disputes, lease or rental agreement disputes, illegal possession etc. Cases related to any such dispute can be filed in various courts of law through real estate lawyers in India. Arbitration proceedings can also be initiated to seek early resolution of such disputes.