What are the laws in the Real Estate Regulatory Act?
Posted on: 06/Sep/2017 10:19:16 AM
When a house is constructed, the buyer trusts the construction company or the builder. However, in some cases, cracks appear or damages occur in the important components of the building such as the pillars. So, the builder has nowhere to go and seek justice.
RERA (Real Estate Regulatory Act) has brought a solution to this problem by devising some important laws. RERA was implemented recently. As per the RERA rules, the builder of the independent or the multi-storeyed building has to give a warranty that no damage will occur during the 1st 5 years after construction.
In the RERA Act, it is mentioned that in case some damages occur in the construction the buyer/owner can complain to the builder and seek a solution.
RERA categorically states that the stability of the newly constructed building is entirely the responsibility of the builder for the 1st 5 years after construction. In case any damage occurs, if the buyer/owner complains to the builder, the builder has to repair the damage within the next 30 days. RERA has also insisted that the builder should not charge the owner any amount for this repair work.
In case no remedial action is taken by the builder after receiving the complaint from the buyer/owner due to negligence or non-concern within 30 days, as per the RERA law, the builder has to pay the compensation for the damage.
There was review meeting conducted in Delhi last month regarding RERA laws. Many eminent builders gave their suggestions during this meeting. There was a unanimous agreement that any builder interested in long-term in this business cannot afford to construct buildings of suspect quality.
Thus, RERA can be considered as a strong legal protection for the investors and the owners. It was also discussed during the meeting that in case the builders point to their contractors regarding the damage, how much effect it would have.
However, the proprietors of the large construction companies categorically explained that the builders will have to develop the complete trustworthy contractors and sub-contractors to overcome any later legal actions.
RERA has also devised certain regulations regarding the basis on which the damage to the construction can be assessed.It is worth noting here that the Haryana State Government had implemented such a law well before RERA. According to this law, in case of any damage in the the walls, slabs, pillars, and concrete flooring and also the damages incurred due to the neglect of the construction workers, and any damages to the construction if it was not constructed as per the original design/plan, only the builder has to take the responsibility.
So, even if the builders have to face new stringent regulations due to RERA, the general observation by experts in the field of Real Estate is that RERA would be largely helpful to the building buyers/owners and also will ensure the proper growth of the construction industry in future.
