Table of Contents
What is a security deposit?
Security deposit is a sum of money given to the real estate broker as an assurity to move into the house. The real estate company charges a certain amount of money from the people willing to buy the property. The security money can be both refundable and non-refundable, depending upon the policies of the real estate broker.
This security deposit can/not be adjusted the total amount of money the buyer has to give to the real estate broker. It can be kept as caution money, i.e. the money needed to make repairs or replacements if any damages occur from the buyer’s side. It is usually 2-5% of the total amount that the buyer needs to pay to the real estate company.
Under what circumstances can I get my refund?
The following are the conditions when one can ask for the complete return of their security money-
- The buyer has not done any damage.
- A proper contract drafted while purchasing the property that says a complete refund of the security deposit.
- You are returning the property within the specified time as stated under the return policy.
- The property is well-maintained at the time the buyer is leaving the house.
- You have paid all your rents/bills on time, and no pending rents are left. However, if any rents/bills are pending, you may not get your security deposit back.
- The quality of the house is not the same as described earlier.
- Not providing legal takeover papers of the property.
- Issued some hidden charges.
- Alteration in the size and layout of the property.
- Provided the land in a different area/locality.
How to get the refund back?
Frauds occur everywhere these days. One has to be very cautious while purchasing a property from a real estate broker. One should thoroughly check the papers, contracts, location, and background of the real estate company. Whether the company is legally registered or not, one has to make sure that the company is real and not a fraudster.
Well, time and tide wait for none. If you faced any fraud, here are some legal ways on how to get your refund back.
File a case in the consumer forum
Thanks to the digitisation boom! Now one can hassle-free file a case online. The best part, you may not need a lawyer for doing so. How simple is that! Follow the steps, and you will get your refund in no time.
Step 1 – Inform the real estate company first. It is necessary to send a legal notice to the real estate broker before filing a complaint online.
Step 2 – Visit the official Consumer Complaint Portal here https://consumerhelpline.gov.in/user/signup.php and fill up all the details as asked on the screen.
Step 3 – Attach the required documents and submit the fees. One can find the details of the fees here https://www.gama.gov.in/ConsumerGrivences.aspx. You can submit the fees online or offline via challan to the nearest consumer forum in your district. One can find the nearest consumer court from the list here http://ncdrc.nic.in/districtlist.html.
Step 4 – Track the status of your complaint by entering the docket number and your registered mobile number here https://consumerhelpline.gov.in/user/track-complaint.php.
Step 5 – Call the National Consumer Helpline number 1800-11-4000 or 14404 between 9:30 a.m. to 5:30 p.m. on working days to submit your grievances.
Take help from RERA
Under the Real Estate Regulatory Authority (RERA) Act, 22 states and 6 union territories got RERA to tackle the various problems that occur in the real estate sector. Taking RERA into consideration, every builder or developer has to abide by the rules to ensure proper functioning within the sector.
RERA has several regulatory bodies that look after both commercial and residential properties. It aims to protect buyers from fraudulent activities. One has to visit the respective RERA website of their belonging state to find out other rules and laws that are implemented at their place.
One must make sure that the real estate company is registered under RERA before buying a property. Check the company’s registration and valid details. If the company is not registered or is suspicious, the complainant can file a case by visiting their state’s RERA website.
Understand the power of NCLT
Are you aware of the National Company Law Tribunal (NCLT)? If yes, then it’s brilliant. If no, continue reading the article to it find out. NCLT came into effect under the Companies Act 1956 in the year 2002. It is meant to solve disputes that arise between a corporate and a civilian. It works like a normal court without any biases.
Major roles of the NCLT are-
- Register/de-register the companies.
- Deals with the deposits of the companies.
- Transfers shares/debentures.
- It has the power to investigate against any company to prevent illegal practices.
- It can freeze the assets of a company if found guilty.
- It deals with the conversion of public limited companies into private limited ones.
One can contact the officials of this tribunal for assistance to get the refund back from the real estate company. Find the contact details here https://nclt.gov.in/content/contact-us.
And like always, Voxya will come to the rescue!
One can always contact Voxya for any type of complaint. Just register your complaint here: File a complaint, fill in all the details as asked, and voila! Just sit and relax till they handle the issue. They will give the details from time to time but cannot assure a definite refund from the real estate as that is uncertain and is subjected to various situations at the time of the incident has taken place.
Many cases have occurred in the past related to scams and frauds in the real estate sector. Some companies file double registration for a single piece of land, or some charge extra than the current price of the land. It is necessary to take legal help from different authorities and make sure to stop the culprit from making any such frauds in the future.
One must always keep in mind – Neither there is a guarantee of how much time it will take to get the refund back nor an assurity of getting a full refund.
