Responsibilities of a builder
- Obtaining A License from the municipal department and the concerned authorities for infrastructural development.
- Registering his projects With RERA and following their guidelines including uploading the details of the proposed project and make a website and enter all the details on the RERA website.
- Getting legal and statutory Clearances From Local Government such as proposal submission, excavating clearance, NOC from the civic department, lift installation clearance, water supply, fire control, electricity supply etc. before starting the project.
- Insuring The Project against any defective or incomplete work because they are liable for any defect of the work even after a decade.
- It is the responsibility of a real estate developer to avoid any delays and if it is stopped for some reason the builder should pay with interest to the investors
- Offering Top Quality Construction Service
- Storing the Construction Material Safely rather on the streets creating inconvenience to the public
- Ensuring The Safety of The Workforce: The builders are responsible to ensure the safety of their workers.
- They are vested with the responsibility of obtaining the certificate of completion, the lease deed and the sale of land all should be given to the allotees either individually or the association of allotees.
- Promoters are required to provide and maintain the essential services at a reasonable cost, until the association of the apartment owners are formed.
- The promoter is vested with the responsibility of enabling the formation of an association, society or co-operative society. In the absence of local laws, the
- association of allottees must be formed within three months of the majority of allottees having booked their plot, apartment or building in the project.
- Registered Conveyance Deed must be executed in favour of the allottee. This also includes the common areas to the association of the allottees.
- All the outgoings such as the rent, land cost, maintenance charges etc must be paid until the project is transferred to the allottees.
- The promoter must pay all outgoings until he/she transfers the physical possession of the real estate project to the allottee or the association of allottees, which includes ground rent, land cost, maintenance charges, etc. If the promoter fails to pay all or any of the outgoings to the allottees or the association of allottees, then he/she continues to be liable even after the transfer.
- No mortgages should be executed on the land of the project after the commencement of the project.
How long is a builder liable for his work in India?
According to Clause 14 (3) of the Real Estate Act, a builder or developer will be liable to fix/repair any defects brought to his notice by a homebuyer within five years from the date of possession, without further charge.
Can builder cancel agreement?
The agreement is valid one even if it has been executed on Rs. 50 affidavit. You can cancel the agreement with negotiation with the builder or if there has been breach of the contract then you can file a complaint under Indian Contract Act.
Can we change flat after agreement?
Yes, the Deed of Rectification can be registered with your respective Sub-registrar Office by rectifying the error of Flat No. in the original Agreement. It does not require stamp duty on the market value. A nominal amount of stamp duty and registration fees shall be paid.
What to do if builder runs out of money?
Buyers in such a scenario need to be alert at any visible signs of bankruptcy. In Shahi's case, if the developer says he has run out of money, the first step is to lodge a claim of property in the consumer forum. In case insolvency proceedings surface, your property or the claim to it would be noticed and recorded.
How can I sue a builder for poor work in India?
Complaint against builder can be filed in the Consumer Court under the Consumer Protection Act 2019 in the district where you reside. Complaint against builder may also be filed under The Real Estate (Regulation and Development) Act, 2016 (RERA).
How do I file a complaint against a builder for poor construction?
- Visit the State Portal of RERA.
- Find the Complaint Registration section and input the details of your grievance.
- You are also required to enter your personal details and asked to attach evidence or documents to support your claim.
What are the rights of apartment owner?
- A resident has the right to attend the general assembly meeting and discuss the subjects.
- A resident has the right to get a copy of the co-operative society act and the byelaw.
- A resident has the right to get the list of members and managing committee.
Who owns the land of apartment?
Buyers of apartment do not buy a structure alone ,they also buy a part of the land upon which that structure stands as a part of the deal. This ownership over land is known as a homebuyer's undivided share in the land.
What happens if a builder refuses to form a society?
However, if the builder fails to form and register a society, then the residents can form the association on their own. A buyer can file a case and send legal notice to the builder for delay in possession under the RERA Act, 2016 or transfer their case from a CDRC to the State Real Estate Regulatory Authority. According to this Act, a builder will have to pay 10% interest on the value of the property for delayed possession of flats.
What if the builder delays the project?
As per the latest ruling by the National Consumer Disputes Redressal Commission (NCDRC), buyers can seek refund from the developer if the possession of the house or a flat is delayed beyond one year.
Depending upon the value of the property, buyers can approach NCDRC in the following courts:
- For properties worth Rs 20 lakh complaints should be filed with the District Commission.
- For properties valuing between Rs 20 lakh and Rs 1 crore grievances should be listed with the State Commission.
- For claims more than Rs 1 crore, a homebuyer should approach the National Commission
There are six important provisions in RERA that may prevent the builders from delaying the projects and stick to deadlines rather than making a default.
- Written affidavit giving a declaration that the specified project will be completed in a particular time period.
- The deed of 'agreement of sale' will have to mention the date of possession and the rate of interest in the case of any default.
- At times, the land on which the project is supposed to be built gets involved in disputes leading to a delay in construction and delivery. A written affidavit has to be provided by the promoter that the legal title to the land on which the development is proposed has legally valid documents with authentication of such title if such land is owned by another person.
- A written affidavit has to be provided by the promoter that the land is free from all encumbrances.
- Maintaining separate account which is realised from the buyers should be maintained in a separate account in a scheduled bank for the construction cost and land cost and for the same kind purposes. This shall be maintained by a certified engineer, architect and a chartered accountant and is subject to audit every 6 months.
- If violating any of the rules, it is punishable by imprisonment for a term which may extend to 3 years or with fine of 10% of the estimated cost of the project or both.