Overview & Statutory Framework
The real estate regulatory framework is highly legalistic, governing joint development agreements, allotment letters, conveyance deeds, and buyer disputes. Promoters and developers require robust legal structures to align JVs and builder-buyer agreements with RERA guidelines, preventing structural liabilities, possession delay disputes, and financial default penalties. At the same time, homebuyers need expert representation to resolve issues with delayed projects, structural defects, or promoter defaults. Our legal advisory team comprises experienced real estate litigators, contract draftsmen, and regulatory experts who represent clients in RERA tribunals, Appellate courts, and arbitration boards.
Under Section 14 of the RERA Act, developers are bound by a statutory 5-year warranty period for structural defects. If any structural defect or quality issue is brought to the promoter's notice within 5 years of handing over possession, the promoter must rectify it within 30 days without charge. If they fail to do so, the buyers are entitled to receive compensation. We advise developers on managing these structural liability contracts and represent homebuyers in claiming refunds, interest on delayed possession (calculated at SBI MCLR plus 2%), and compensations before the Adjudicating Officer.
Core Components
- Drafting & Standardizing Agreements: Creating legally binding Builder-Buyer Agreements and Allotment Letters that comply with state model rules and avoid unilateral clauses.
- Joint Venture & Landowner Agreements: Structuring Joint Development Agreements (JDA) to define clear compliance responsibilities between landowners and promoters.
- Representing Clients in Tribunals: Drafting complaints, responses, and representing promoters or buyers in hearings before RERA Authorities, Adjudicating Officers, and Appellate Tribunals.
- Legal Due Diligence: Conducting comprehensive title search audits, encumbrance verification, and regulatory feasibility analysis for land parcels.
- Arbitration & Alternate Dispute Redressal: Facilitating negotiations, settlements, and legal compromises between developers and groups of homebuyers.
Frequently Asked Questions
Can a homebuyer file a complaint directly in RERA for project delay?
Yes, under Section 31, any aggrieved consumer can file a complaint with the RERA authority or Adjudicating Officer for delay in possession. The buyer can claim a refund with interest, or claim monthly interest for the duration of the delay if they wish to stay in the project.
What is the rate of interest developers must pay for delayed possession?
The interest rate for delayed possession is uniform for both developers (for delays in possession) and buyers (for defaults in payments). Typically, it is calculated as the State Bank of India (SBI) highest Marginal Cost of Lending Rate (MCLR) plus 2%.
Does RERA override arbitration clauses in Builder-Buyer Agreements?
Yes, multiple rulings by the Supreme Court of India have established that the RERA Act overrides private arbitration clauses. Aggrieved homebuyers have the absolute right to approach RERA tribunals directly, despite having an arbitration clause in their agreements.
Need Assistance?
Talk to our experts about your specific requirements and get a professional consultation.
Book ConsultationCall +91 95425 18776