In India, investing in real estate is a promising way to build wealth, however scams involving the registration of the same property under several names to various owners have grown incredibly prevalent. The operation of several registration frauds, some noteworthy Indian cases, and the function of the Real Estate Regulatory Authority (RERA) in protecting purchasers are all covered in this article. We’ll also go over how to take advantage of RERA’s legal protections and provide helpful advice on how to protect yourself.
How Multiple Registrations Scams Work
These scams use duplicate sale deeds to sell a single property to several buyers. Usually, the scam takes advantage of inadequate due diligence and old or poorly maintained property records. Let’s see how it occurs in more detail:
First Sale and Registry: The first buyer’s name is used to register the property. However, the original owner may still be included in the official land records due to missing documents or a delay in updating ownership records.
Creation of Duplicate Sale Deeds: Dishonest sellers take advantage of the delay in ownership changes by selling the same property to other purchasers without changing the ownership information.
Resulting Legal Conflicts: Conflicting claims to the same property resulting from multiple registrations can rise to protracted legal disputes over ownership rights.
RERA’s Approach to Combating Real Estate Fraud
India’s real estate industry was intended to become more transparent, accountable, and standardized with the passage of the Real Estate (Regulation and Development) Act, 2016 (RERA). Before marketing or selling their projects, builders must register them with the state-specific RERA authorities in accordance with RERA requirements. Addressing real estate fraud, including numerous registry scams, has been made possible in large part by this legislation.
Here’s how RERA works to protect property buyers
Builders are required to register:
All residential and commercial real estate developments are required under RERA to register with the RERA authority in their respective states. Builders must reveal all relevant information regarding the property, such as title records, development schedules, and prior sales.
Project Details Are Disclosureed:
Builders are required by RERA to update project information on the RERA portal on a regular basis, including sales, plot or flat distribution, and other legal details. These details are available to buyers, which facilitates the process of confirming whether a property has been sold before.
Responsibility for the Practices of Builders:
Builders are held responsible by RERA for the caliber of construction, project schedules, and fulfillment of sales commitments. RERA can penalize a builder and impose buyer compensation, for instance, if the builder tries to resale a property through a duplicate registration.
Resolving Buyer Grievances:
RERA provides buyers with a strong grievance redressal process. A buyer of real estate may report to the RERA authority if they come across dishonest activities. RERA has the authority to look into complaints, punish builders, and order remedial measures. This implies that consumers have a dependable way to pursue justice without having to endure drawn-out legal disputes.
Important Examples of How RERA Handled Several Registry Scams
Delhi NCR Fraud Case (2019): In this case, a builder in an RERA-registered project sold apartments to several purchasers. The authority looked over the complaints made by buyers via the RERA portal and severely fined the builder. RERA placed limitations on future sales and ordered the builder to reimburse impacted purchasers.
Pune Residential Project Scam (2021): RERA intervened and checked the registry data after several purchasers found overlapping claims on flats within a project. In order to avoid more conflicts, the authority sanctioned the builder, demanded that buyers be reimbursed, and ordered that sales records be corrected.
How to Protect Yourself from Multiple Registry Scams
Although RERA offers an extra degree of security, you should also take the following actions when buying real estate:
Verify the status of your RERA registration:
First, check the project’s registration status on the RERA site for the relevant state. It is advisable to reevaluate the acquisition if the property is unregistered.
Examine the RERA project disclosures:
Review information on the property’s ownership history, encumbrance status, and prior sales via the RERA portal. This openness guarantees that you are aware of any possible conflicts.
Check Documents of Legal Ownership:
Look for the encumbrance certificate, sales agreement, and title deed. These records ought to accurately reflect the property’s lawful ownership and be verified by comparing them with official land records.
Demand that Property Records Be Mutated:
To amend your ownership in revenue records after purchasing a property, go through the “dakhil kharij” (mutation) process. In addition to preventing possible duplicate sales, this step completes the transfer and guarantees that you are listed as the registered owner in government records.
Speak with Legal Counsel:
A property lawyer can provide knowledgeable advice on register checks, title verification, and any inconsistencies. They will also understand how to strengthen the security of your investment by leveraging RERA standards.
How to File an RERA Complaint
It is simple and efficient to file a complaint through RERA if you become a victim of a multiple registry scam. Here’s how to get things started:
Go to the RERA Portal of the State:
Go to the complaint submission area after creating an account on the portal.
Finish filling out the complaint form:
Give specifics about the property in question, the constructor, and the type of fraud. Include supporting documentation, such as the registry information and the sale deed.
Complaint fee payment:
You might have to pay a small cost to file your complaint. Each state has a different exact quantity.
Hearing and Settlement:
After reviewing your complaint, RERA may request a hearing from the builder. RERA has the authority to order the builder to settle the disagreement, reimburse purchasers, or take other remedial measures in light of the findings.
For more RERA-related information
Conclusion :
Leveraging RERA to Safeguard Real Estate Investments
By bringing accountability and openness to the real estate industry, RERA’s monitoring has greatly reduced real estate scams, including numerous registry fraud. Buyers can safeguard their investments from dishonest tactics by combining RERA’s resources with careful due diligence, which includes confirming title deeds, mutation updates, and encumbrance data.
Purchasing real estate is a big decision, but buyers can move more confidently through India’s complicated real estate market if they have the appropriate tools and resources. Property buyers have a trustworthy ally in guaranteeing safe and secure real estate transactions while RERA develops and fortifies its regulations.
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