Property Disputes With Real Estate Developer in India

Although there is an immense growth in NRIs investing in properties in India for future use, there has also been an alarming increase in number of cases where NRIs have witnessed dilemmas when it comes to dealing with real estate matters.

Homebuyers and property investors have a fear of unscrupulous and dishonest developers in the real estate sector. NRIs are hesitant to take a plunge towards investment because of the uncertainty about legal implications. Commonly reported disputes involving real estate developers and NRIs include:

Property grabbing by using impersonation,

Fake property deals,

Building scams, etc.

The National Real Estate Development Council (NAREDCO), under the aegis of Ministry of Housing and Urban Development, Government of India; has proposed legislation on Real Estate Management. This would bring about transparency and ethical practices in Indian real estate sector. It aims at reducing the cases of property investors wooing NRIs with false claims of projects with the help of fake videos and information.

Essential precautions that any NRI investor should follow are:

Check Real Estate Developer’s Track Record: Various factors to be considered are the delivery of projects completed in the past, smooth transfer of titles in property cases, whether the projects have been delivered as per the agreed schedule, type of customer service provided by the developer, litigation history and quality orientation of the developer.

Insist On Original Documents: The clear title of the seller is important to ensure that the seller owns the property and has right to sell it. Also, have a look at original loan documents, property deed, tax assessment, etc.

Other Requirements: Check the approved plan of the property to be purchased, stamp duty and registration documents, building use permission if any, etc.

Legal Remedies: Having due awareness and following precautions will help to reduce disputes. As a property investor, if any NRI is a victim of unfair practices by a real estate developer; they can approach for redressal of their grievances by filing a civil suit or a criminal case.

Frequently Asked Questions

What are common disputes between buyers and real estate developers?

Common disputes include delayed possession, deviation from the approved plan, poor construction quality, hidden charges, failure to obtain occupancy or completion certificates, and the developer diverting funds to other projects.

Can I file a complaint against a builder under RERA?

Yes. Under the Real Estate (Regulation and Development) Act, homebuyers can file a complaint with the State RERA Authority against a registered project for issues like delayed possession, false advertising, or structural defects, and seek refund, compensation, or possession.

What can I do if the builder delays possession?

If a developer delays handover beyond the agreed date, you may claim interest or compensation for the delay, demand possession, or seek a refund of your money with interest by approaching RERA, the consumer forum, or civil court.

Is approaching the Consumer Court an option against a developer?

Yes. A homebuyer is treated as a consumer and can file a complaint before the appropriate Consumer Disputes Redressal Commission for deficiency in service or unfair trade practice, seeking refund, compensation, or completion of the project.

Should I hire a property lawyer for a dispute with a developer?

Engaging an experienced property lawyer is strongly advisable. A lawyer can review your builder-buyer agreement, identify violations, choose the right forum, and effectively represent you to secure compensation, refund, or possession.

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