The benefits of WBRERA in West Bengal are evident from the numerous judgments which have been passed to protect homebuyers in recent years.
Benefits of WBRERA in West Bengal
The Real Estate (Regulation and Development) Act, 2016 (RERA) came into existence to boost investments and to protect and safeguard the interests of homebuyers. However, the West Bengal government had earlier incorporated its own rules under the WBHIRA. However, with the Supreme Court judgment in 2021, the West Bengal RERA (WBRERA) is now effective in West Bengal and widely accepted. The key objective of the WBRERA is to bring greater transparency, accountability, financial discipline, speedy redressal of disputes and so on. The benefits of WBRERA for homebuyers in West Bengal are not just protecting their properties but also building transparency within the system.
Benefits of WBRERA in West Bengal to Home Buyers:
Right to Information/disclosures under WBRERA
One of the main advantages of the WBRERA to the buyer is that before investing in property the buyer now has the full right to information about the builder and their projects. Post WBRERA, the builder is responsible for sharing all the relevant information with the buyers.
Standardized Carpet Area under WBRERA in West Bengal
Before WBRERA, there was no standard formula for the computation of the carpet area, in the absence of any defined guidelines the builders used to inflate the carpet area which further increased and shot up the cost of the property.
Post WBRERA, there is a standard formula for the calculation of the carpet area; therefore, the builders would not be able to manipulate the same.
Advance Payment under WBRERA
Before WBRERA, homebuyers had to pay advance payment as demanded by the builder; there was no cap on it. Now the builder can’t demand more than 10% of the cost of the property as advance or application fees under the agreement for sale. This is another benefit of WBRERA in West Bengal.
Rights of the buyer in case of false commitments/promises
In case of any disparity/difference between the commitments/promises made by the builder and the actual property, the buyer, in that case, has the option to withdraw from the project and will be entitled to a full refund of the amount paid in advance or otherwise along with the interest and claim compensation.
Rights of the buyer in case of the defect after possession
The buyer would be entitled to rectification of defects free of cost in case of any structural defects, any defect in workmanship or quality, service or provision, within 5 years from the date of the possession. Any such defects would be rectified within 30 days once the defects are detected.
If the builder fails to carry out the repairs within the stipulated time, the buyer can claim compensation for the same. These benefits of WBRERA in West Bengal can be availed by all homebuyers.
Rights of the buyer in case of delay of possession
If the builder fails to deliver the possession of the property on the due date, then the buyer has the following options available:
- To withdraw from the project, wherein the buyer shall be entitled to a full refund along with the interest from the due date of completion till the amount is refunded.
- To continue with the project until its completion, wherein the buyer will be entitled to compensation along with interest payable from the due date of completion of the project till the project is completed.
Rights of the buyer in case of a defect in title under WBRERA
If any time after the possession of the property, the buyer finds that there is a defect in the title of the property then the buyer can claim compensation from the builder. This is a major benefit of WBRERA in West Bengal.
Setting up an Authority for grievance redressal
Post WBRERA implementation, the buyer can now approach the West Bengal State Authority set up under WBRERA. If the buyer is not satisfied with the order passed by the State Authority, a complaint can also be filed or an appeal can be made with the Appellate Tribunal which will redress the case within 60 days and in case of failure to do so, it shall record the reasons of such failure or be extended with the reasons of delay.
WBRERA enhances a builder’s credibility
The Act also has adequate provisions to safeguard the builders from the buyers who purposely delay the due payments and/or do not take possession of the property after receiving a completion certificate. Also, WBRERA enhances the credibility of registered builders which helps them in securing investments/finances. The benefits of WBRERA in West Bengal are well evident from the homebuyers who are now able to question the builder’s credibility for failed projects.
Benefits of WBRERA in West Bengal to Builders:
Boost Buyers/Investors’ Confidence and Investments
Due to WBRERA, the buyers/investors can check the details of the builder and their projects on the WBRERA website which will revive the faith of the buyers/investors in the builders which in turn will boost their confidence in the real estate sector and increase the investments.
The establishment of a regulator will also increase foreign investments which will give a boost to the overall sector.
Transparency
With the WBRERA being in existence, the builders will take reasonable care in uploading the details of the projects on the respective state regulatory websites, which will increase transparency in the marketing and execution of the projects. Because of the increased level of transparency, the investment rate will be improved in the real estate sector.
Buyers are accountable for a breach of agreement and delay in payments
The builder has the right to approach the regulator in case there is any dispute with the buyer. In case of any breach of the builder-buyer agreement by the buyer, the builder can hold the buyer accountable for the same.
In case of delay in payments by the buyer to the builder, the builder can claim interest and also file a complaint against the buyer for the non-payment with WBRERA. If the buyer creates a third-party interest without informing the builder, the builder can also take legal action against the buyer.
Timely possession of the property
Under WBRERA, the buyers are liable to take possession of their property within two months of receiving the Occupancy Certificate and cannot hold the builder liable for any further delays on their part.
WBRERA Benefits in West Bengal for the Government:
The whole purpose of the Government formulating a new Act is to bring the regulatory system in place and the WBRERA helps to achieve such objectives of the Government.
- The Government through WBRERA can regulate the real estate sector through its rules & regulations thus transforming a vastly unorganized sector into an organized sector. This hugely benefits the Government in sector-specific policy formulation, an authentic database of the real estate sector economy and the creation of a transparent system that boosts investor’s confidence.
- Under WBRERA, the Government can collate an authentic database of investment & revenue generation from the real estate sector. This information is very useful in formulating future policies & budgetary allocations for the economic development of the country.
- The real estate sector is one of the biggest contributors to GDP. With the implementation of the WBRERA, prevailing corrupt practices in the real estate sector like black money transactions, lower stamp duty payments, unknown sources of investments, etc. which result in a revenue loss for the Government have been vapid out. Now the Government has a very reliable source of revenue generation.
Overall Benefits of WBRERA in West Bengal
From this article, it is evident how the benefits of WBRERA in West Bengal are achieved not just by the home buyers, but also by the developers as well as the government. Every home buyer and builder must know the importance of the WBRERA. WBRERA binds home buyers and builders under its provisions. WBRERA also protects home buyers and builders from different malpractices. However, it is important to consult a RERA lawyer in West Bengal to achieve the benefits of it. You can consult us for WBRERA matters as we have expertise dealing with the same.