Unveiling the Legality of Builder Restrictions on Apartment Purchases in India

India’s real estate sector has seen a significant boom in recent years, with a surge in the construction of apartments and high-rise buildings. However, this growth has also led to an increase in the number of disputes between builders and buyers, particularly over the restrictions imposed by builders on apartment purchases. These restrictions can range from mandating the use of specific service providers, such as a particular Dish Network, to prohibiting certain activities, such as storing water in the home or hanging clothes in the balcony. But how legal are these restrictions? This article aims to unveil the legality of builder restrictions on apartment purchases in India.

Understanding Builder Restrictions

Builder restrictions are conditions imposed by the builder or developer on the buyer of an apartment. These conditions are usually mentioned in the apartment’s deed of declaration, which is a legal document that outlines the rules and regulations of the apartment complex. While some restrictions are necessary for the smooth functioning of the apartment complex, others may be arbitrary and unfair to the buyers.

Legality of Builder Restrictions

According to Indian law, builders have the right to impose certain restrictions on apartment purchases. However, these restrictions must be reasonable and not violate the rights of the buyers. The Real Estate (Regulation and Development) Act, 2016 (RERA), which regulates the real estate sector in India, provides certain protections to buyers against unfair practices by builders. For instance, under RERA, any restriction that is not mentioned in the deed of declaration at the time of purchase is considered illegal.

Challenging Unfair Restrictions

If a buyer believes that a restriction imposed by the builder is unfair or illegal, they can challenge it in court. The court will then determine whether the restriction is reasonable and necessary for the smooth functioning of the apartment complex. If the court finds that the restriction is unfair, it can order the builder to remove it.

Conclusion

In conclusion, while builders in India have the right to impose certain restrictions on apartment purchases, these restrictions must be reasonable and not violate the rights of the buyers. Buyers who feel that they are being subjected to unfair restrictions can seek legal recourse. It is always advisable for buyers to thoroughly read and understand the deed of declaration before purchasing an apartment, and to consult with a legal expert if they have any doubts or concerns.

References

• Real Estate (Regulation and Development) Act, 2016
• Indian Contract Act, 1872
• Consumer Protection Act, 2019