DELHI HOMEBUYERS GOING FOR ALTERNATIVE DISPUTE RESOLUTION

Everything today is turning expensive and everyone wants to save time as money and time are of the great essence these days.

Keeping that in mind, it has been witnessed that Delhi and NCR homebuyers are coming to grasp the fact that the court procedure has turned very expensive as well as time-consuming. The homebuyers now think that collaborating with the real estate developers by funding for the completion of the projects by paying off dues and checking whether the project is finished on time. Because approaching the courts lead to even more delays.

It is more likely that when you solve a dispute by amicable negotiation, the chances of settlement wherein both parties are benefited are higher than in the case of court settlements. Homebuyers in India prefer entering into contracts only with registered agents, contractors and builders, they restrain signing contracts with strangers.

Also know: Top Most Expensive Houses in India

Not just faster and better settlement, collaborating with developers of your concerned project also helps in developing the factor of trust between both the parties. In cases like these, the builder needs to take approval of the representatives of the buyers to withdraw any money from the escrow account. There have been cases where buyers are waiting for five years for the court to settle the dispute whereas when the association of buyers negotiates with the builder of the concerned projects, things took a faster speed.

In the book by Jerome Auerbach, ‘Justice without law’ he estimated that in 1983, over 75 per cent of the disputes between builders and buyers were resolved and settled through Private negotiations. There are, till date many disputes which are resolved using private arbitration as court’s process are highly time-consuming.

When buyers decide to choose their association to settle the dispute, such associations ensure that the disputes are solved faster and on time and also at a low cost for both buyers and builders.

Since we all know that the needs and requirements of every buyer vary. Hence legislations like the RERA 2016 would impose a ’one-size-fits-all solutions for home buyers. The private settlements would create services which will be customised as per the needs of the home buyers.

Such private arbitration would also help in setting an example for the government agencies, regulatory authorises and courts.  However, the only flaw with this method is that it is often seen that the punishment is not proportionate to the crime. But the private associations of the home buyers have tried to find some resolution which is acceptable by both the parties i.e. the buyers and the builders. For more go to Indian Realty Exchange.