Legal Advice

Real estate agent made false promise: How to take legal action?

Shivendra Pratap Singh

Advocate

High Court Lucknow

Property | RERA

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Question asked on: 3 Apr, 2022

Question: A real estate agent has made false promise about the covered car parking. While purchasing a flat, the sales team committed to giving covered car parking. Now they are asking for additional costs for covering that parking. I have a meeting recording in which a sales person clearly says they will provide covered parking. CRM team not supporting. We showed the CRM team audio recording still not taking our side. How can we complain about this ? How can social media help in this ? 3) How can real estate companies bring reality to social media?

Asked from: Maharashtra

You should file a complaint before the RERA Authority established under The Real Estate (Regulation and Development) Act, 2016. False information or promise about the real estate project is strictly prohibited under the RERA Act. 

According to section 10 of the RERA Act, the real estate agent shall not make a false or misleading representation concerning the services. If he does so, he shall be punished under Section 62 of the Act. 

If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

Section 62 of RERA Act

Hence, you should prefer a complaint to the real estate regulatory authority against the false promises of real estate agent. If the RERA finds that the promoter has instigated the agent to make such false promises the promoter will also be punished under Section 60 of the Act. 

If the promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent of the estimated cost of the real estate project, as determined by the Authority.

Section 60 of RERA Act

Don’t involve yourself in the blame game on social media platforms. Be sincere and take appropriate action against the agent and promoter under the provisions of RERA Act. Real estate agent made false promise and you have evidence to prove it. This is sufficient to initiate proceeding under the RERA.