How can a Buyer Overturn the ‘Forced Consent’ Agreements by the Developer?
Jun 12, 2018 Legal Guidance
When RERA came into force, it brought a joy with itself for the potential buyers. The unscrupulous malpractices by the builders would be put to an end and the real estate area will be fairer to the buyers.
But it isn’t all fair. Some developers try to get a document signed by the buyer at the time of registration. The document generally states that the builder is free to make any changes during the development phase, as required. This kind of agreement totally invalidates the entire meaning behind RERA.
But it isn’t all fair. Some developers try to get a document signed by the buyer at the time of registration. The document generally states that the builder is free to make any changes during the development phase, as required. This kind of agreement totally invalidates the entire meaning behind RERA.
RERA Section 14 to the rescue:
Section 14 of RERA, prohibits the developer to make any changes in the project or individual apartment without the prior consent of the buyer. Any changes in the plan or layout are only possible with a written consent of the buyer. Any changes in the layout of the entire project are only possible if there is approval from two third buyers from the total number of buyers or allottees. Thus, until the consent is given by the buyers, the developer is bound to provide the buyer with the promised plan.
Informed Consent:
The term ‘Informed Consent’ is of very important as it implies that the buyer must be duly informed about the changes in the project prior to implementing them. For the case of Madhuvihar cooperative society and others vs Jayantilal Investments and others, had the opportunity to interpret the Section 7 of the Maharashtra Ownership of Flats Act (MOFA), which is similar to the Section 14 of RERA. The Bombay high court ruled that taking prior consent from the buyer at the time of agreement is legally invalid and defeats the very purpose of the law. It also ruled that the buyer must be properly and entirely informed about the changes in a project.
Forced consent can be nullified:
According to Section 19 of RERA, if the builder forces the buyer to sign the agreement of consent for changes under any force, coercion, misinterpretation, undue influence etc, the buyer can challenge it in the court and get it declared null in the court.
Filing a complaint with the regulatory authority:
If a buyer finds itself under the pressure from the developer to sign the agreement, the buyer can file a complaint under Section 35 to the Regulatory authority of RERA. The body will take the necessary action against the builder and can charge the developer fine which can amount to five times the cost of the project. Further, if the body finds the practices of the developer malicious, they can cancel their license.
With RERA coming into force, the enforcement of the law lies in the hands of the buyer. Since RERA is a fast track body, the buyers can expect their grievances and complaints to be addressed quickly as compared to the civil courts.
With RERA coming into force, the enforcement of the law lies in the hands of the buyer. Since RERA is a fast track body, the buyers can expect their grievances and complaints to be addressed quickly as compared to the civil courts.
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