‘Consult lawyers & examine clauses before signing docus’

In an interview with TOI,

Anarock

Property Consultants chairman

Anuj Puri

explains the loopholes in the real estate law and the need for vigilance among consumers. Excerpts:

Which agreement will prevail if challenged, RERA or a bilateral deed?

An agreement duly signed by both parties will prevail in case of any dispute. The duly signed papers indicate that both parties are in agreement of the clauses therein. It is imperative that buyers consult a reputed lawyer to check all the clauses mentioned before signing the agreement papers.

What if the signed agreement is at variance with laws under RERA?

If there is a difference between the agreement and the law, then the law shall prevail. If the RERA policy has been violated by the builder, then he will be held responsible for it. Both the builder and the buyer will have to comply with what is ruled by the court of law.

Have you come across instances where the developer has been penalized for wrongful commitments? Or, have you come across instances where the developer has been penalized a portion of the real estate cost for a wrongdoing?

RERA’s existence is intended to seamlessly cover developers and real estate agents across the country. Despite not being implemented in letter and spirit, a provision that makes RERA a ‘hit’ among consumers across a few states is the rising number of complaints registered with respective state authorities and its quick redressal. Though the redressal of complaints may not be satisfactory for many, a large number of consumers has shown their faith in the RERA regulators and registered their complaints.

The intent of RERA was to ensure that projects are completed on time. But builders are now getting extensions on alibis other than force majeure conditions...

In such cases, consumers are left with no choice but to approach a court of law. The process, however, is more time-consuming than the cases under RERA. Even projects registered under RERA are seen to be delayed under some pretext or the other, which the builders conveniently claim as “unavoidable circumstances”.’ The buyers must be very vigilant while signing the agreement papers and try and clear what these “unavoidable circumstances” refer to.

Who will be responsible in case of an undisclosed dispute between the landowner and the developer?

In case of an undisclosed dispute between a landowner and a developer, the buyers will not be legally responsible for it. It is the builders’ obligation to keep the buyers informed of any such legal dispute at the time of the agreement. Unfortunately, consumers who unknowingly purchase disputed properties suffer the most in cases embroiled in court. These cases are not only time-consuming but provide unnecessary hassles to consumers and affect the legality of their ownership.