The Real Estate (Regulation and Development) Act, 2016 (RERA) has transformed the real estate sector in India by ensuring transparency, accountability, and efficiency. RERA compliance in Chandigarh is a crucial requirement for all real estate developers, promoters, and agents operating in the region. It protects homebuyers’ interests and provides legal remedies for disputes arising in property transactions.

This article delves deep into RERA compliance in Chandigarh, covering the applicable laws, sections, procedures, penalties, and key requirements under the RERA Act, 2016. It is designed to be a useful resource for students, property buyers, and real estate professionals who wish to understand RERA compliance.

What is RERA and Why is it Important?

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate and promote transparency in the real estate sector. It applies to both residential and commercial projects. RERA ensures:

  • Mandatory registration of real estate projects and agents
  • Protection of homebuyers’ rights
  • Standardization of property transactions
  • Timely completion of projects and legal remedies for delays
  • Strict penalties for non-compliance

Chandigarh, being a planned city with significant real estate development, comes under the Punjab Real Estate Regulatory Authority (Punjab RERA) and the Haryana Real Estate Regulatory Authority (Haryana RERA) depending on the jurisdiction of the project.

RERA Compliance in Chandigarh:

1. Registration of Real Estate Projects

As per Section 3 of RERA, all real estate projects exceeding 500 square meters or having more than eight apartments must be registered with the RERA authority.

Documents Required for RERA Registration

To comply with RERA regulations in Chandigarh, developers must submit:

  • Approved project plan and layout
  • Details of promoters and stakeholders
  • Proof of ownership rights (sale deed, title deed)
  • Agreement for development rights
  • Project completion timeline
  • Details of financial planning and fund allocation

2. RERA Compliance for Real Estate Agents

Under Section 9 of the RERA Act, real estate agents must register with RERA before facilitating any property transaction. A registered real estate lawyer or property verification lawyer can assist in ensuring compliance.

Documents Required for RERA Agent Registration

  • PAN card and Aadhar Card
  • Business address proof
  • Income tax returns
  • Photographs of the real estate agent
  • Details of past transactions

Any agent found violating RERA provisions may face penalties up to ₹10,000 per day under Section 62 of the Act.

3. Adherence to RERA Rules for Developers

Developers must comply with multiple legal obligations under RERA, including:

a) Disclosure of Project Details (Section 4)

All project details, such as land ownership, financial status, construction timelines, and legal approvals, must be disclosed to buyers and the RERA authority.

b) Timely Completion of Projects (Section 8 & Section 18)

If a project is delayed or abandoned, the buyer has the right to:

  • Seek a full refund
  • Claim compensation for damages
  • Demand interest on the amount paid

Failure to comply results in a penalty of up to 10% of the project cost under Section 59.

c) Maintenance of an Escrow Account (Section 4(2)(I)(D))

Developers must deposit 70% of the project funds in a separate escrow account to prevent fund diversion.

d) Five-Year Warranty Against Defects (Section 14(3))

Developers must rectify structural defects or poor construction quality within five years of property handover.

Legal Rights of Homebuyers Under RERA

Buyers in Chandigarh benefit from RERA in various ways:

  • Right to Information – Buyers must receive project plans, completion dates, and financial details.
  • Right to Compensation – In case of fraud or delay, buyers can claim a refund or interest payment.
  • Right to Legal Remedies – Buyers can file complaints with RERA authorities and appeal to the Appellate Tribunal if unsatisfied.

A real estate lawyer or lawyer for property disputes can assist in filing complaints under Section 31 of the Act.

Penalties for Non-Compliance with RERA in Chandigarh

Non-compliance with RERA can lead to severe consequences:

Offense Penalty
Failure to register project 10% of project cost (Section 59)
Providing false information 5% of project cost (Section 60)
Delay in project completion Refund + interest (Section 18)
Non-compliance with orders Fine up to 5% of project cost (Section 63)
Repeated violations Imprisonment up to 3 years (Section 64)

Developers should consult a property law attorney to avoid legal complications.

Procedure for Filing a RERA Complaint in Chandigarh

Buyers can file complaints against developers, builders, or agents if they fail to comply with RERA.

Step-by-Step Process

  1. Lodge a Complaint with RERA Authority
    • Visit the official Punjab RERA or Haryana RERA website
    • Fill out the complaint form
    • Attach supporting documents (agreement, payment receipts, communication with the developer)
    • Pay the complaint fee (usually ₹1,000 to ₹5,000)
  2. Hearing and Resolution
    • The RERA authority will issue a notice to the developer
    • A hearing will be conducted
    • A judgment will be passed within 60 days
  3. Appeal to the Real Estate Appellate Tribunal
    • If unsatisfied with the verdict, an appeal can be filed within 60 days under Section 44 of RERA.

A lawyer for real estate disputes can assist in drafting complaints and legal arguments.

RERA compliance in Chandigarh is essential for developers, real estate agents, and homebuyers. Understanding the registration process, penalties, buyer rights, and legal remedies can help prevent disputes and ensure transparency in property transactions.

If you are involved in real estate transactions, it is advisable to consult a property attorney, property verification lawyer, or real estate attorney to navigate RERA compliance smoothly. Whether you are buying a new home or investing in commercial property, understanding RERA regulations is crucial for safeguarding your legal rights.

FAQs on RERA Compliance in Chandigarh

1. Is RERA applicable in Chandigarh?

Yes, RERA applies to Chandigarh. Depending on the jurisdiction of the project, it must be registered under either Punjab RERA or Haryana RERA. Buyers and investors can check the respective regulatory authorities for project details and compliance status.

2. What are the consequences of not registering a project under RERA?

Failure to register a project under RERA can result in a penalty of up to 10% of the total project cost. If non-compliance continues, the developer may face imprisonment of up to three years under Section 59 of the Act.

3. Can a buyer get a refund if a project is delayed?

Yes. Under Section 18 of RERA, if a project is delayed beyond the agreed timeframe, homebuyers can:

  • Seek a full refund with interest.
  • Opt to continue with the project and receive compensation for the delay.
  • Approach the RERA authority for legal action if the builder fails to comply.

4. Do real estate agents need to register under RERA?

Yes, all real estate agents facilitating property transactions must register under RERA as per Section 9 of the Act. Unregistered agents can face penalties, including fines up to ₹10,000 per day for continued violations under Section 62.

5. How can I verify if a project is RERA-registered in Chandigarh?

To check the registration status of a project:

  1. Visit the official Punjab RERA or Haryana RERA website.
  2. Enter the project name, developer details, or RERA registration number.
  3. View the project details, approval status, and compliance reports.

6. What are the rights of homebuyers under RERA?

Homebuyers in Chandigarh benefit from several protections under RERA, including:

  • Right to Transparency: Access to project plans, timelines, and financial details.
  • Right to Compensation: Buyers can claim refunds or interest in case of project delays or fraud.
  • Right to Legal Remedies: Complaints can be filed with the RERA authority and escalated to the Appellate Tribunal if necessary.

7. What are the penalties for developers violating RERA guidelines?

Developers failing to comply with RERA may face:

  • 10% fine on project cost for non-registration (Section 59).
  • 5% fine on project cost for providing false information (Section 60).
  • Refund + interest for project delays (Section 18).
  • Up to 3 years of imprisonment for repeated violations (Section 64).

8. How can a buyer file a RERA complaint in Chandigarh?

To file a complaint against a developer or agent:

  1. Visit the Punjab RERA or Haryana RERA website.
  2. Fill out the complaint form with project details and grievances.
  3. Attach supporting documents (e.g., sale agreement, payment receipts).
  4. Pay the applicable complaint fee (₹1,000 – ₹5,000).
  5. The RERA authority will schedule a hearing and issue a ruling within 60 days.

If dissatisfied, buyers can appeal to the Real Estate Appellate Tribunal under Section 44 within 60 days of the judgment.

9. Do developers need to maintain an escrow account under RERA?

Yes. Section 4(2)(I)(D) of RERA mandates that developers deposit 70% of project funds into a dedicated escrow account. This ensures that funds are used solely for project development, preventing misuse and financial fraud.

10. What is the five-year defect liability period under RERA?

As per Section 14(3) of RERA, developers must rectify structural defects or construction quality issues within five years of property handover. If defects arise, the builder must fix them at no additional cost to the buyer.