Arbitration and Conciliation in RERA Matters: An Effective Alternative Dispute Resolution Real Estate Mechanism for Builder-Buyer Disputes

Trapped in a Property Dispute? Explore Alternative Dispute Resolution Real Estate

Property disputes can quickly turn a dream home into a legal nightmare. In Maharashtra and across India, delayed possession, builder defaults, title issues, and ownership conflicts are increasingly common. Instead of long and expensive court battles, many buyers and owners are turning to alternative dispute resolution in real estate such as arbitration, mediation, and conciliation to resolve conflicts faster and more amicably. This article explains how ADR works in real estate matters, its legal standing, and when it’s the right choice for property buyers and developers.

Understanding the Legal Framework for Alternative Dispute Resolution Real Estate Under RERA

The Real Estate (Regulation and Development) Act, 2016 was enacted to regulate India’s unorganised real estate sector and protect consumer rights. It led to the establishment of state-wise authorities, such as MahaRERA in Maharashtra, which specifically addresses real estate grievances.

Key Legal Provisions Supporting ADR:

  • Section 32(g): Empowers authorities to facilitate amicable dispute resolution via conciliation forums.
  • Section 31: Allows aggrieved parties to file complaints with RERA authorities.
  • Arbitration and Conciliation Act, 1996: Provides a national legal framework for arbitration proceedings, which are now often referenced in RERA arbitration Maharashtra cases.

Important Note: The Bombay High Court has clarified that RERA’s jurisdiction is not ousted by an arbitration clause. So even if your agreement includes arbitration, you can still approach MahaRERA directly for relief.

1. What is Alternative Dispute Resolution Real Estate?

Alternative dispute resolution real estate refers to out-of-court settlements such as:

  • Conciliation RERA builder forums, which are voluntary and guided by neutral conciliators.
  • RERA arbitration Maharashtra processes, where a tribunal settles the dispute instead of a judge.

These methods offer:

  • Faster timelines (60–180 days)
  • Lower costs
  • Confidentiality
  • Preserved relationships between builders and buyers

2 Real Problems Faced by Buyers in Maharashtra: A Snapshot

  • Delayed Possession: A Thane resident paid full instalments by 2020 but still hasn’t received possession by mid-2025. MahaRERA fined the developer ₹50 lakh and directed compensation.
  • Poor Construction Quality: Post-possession complaints about leakage, faulty tiling, or structural cracks are common, especially in Navi Mumbai. Conciliation RERA builder platforms often resolve such issues without litigation.
  • Hidden Charges and Unfair Clauses: Buyers often receive inflated final bills or are denied access to promised amenities. The law now discourages such one-sided contracts and empowers buyers.

3. Practical Steps to Initiate Dispute Resolution Under RERA

  • Step 1: Gather Your Documents

Include your:

  1. Booking form
  2. Builder-buyer agreement
  3. Payment receipts
  4. Email/SMS communication
  5. Brochures and floor plans
  • Step 2: Try to Settle Directly

Send a formal notice to the builder with a clear paper trail. Document all responses or lack thereof.

  • Step 3: File a Complaint with MahaRERA

Visit the MahaRERA portal, complete the complaint form, upload all documentation, and pay the prescribed fee. Most cases are resolved within 60 days.

  • Step 4: Explore Conciliation

File a request on MahaRERA’s Conciliation Forum. Neutral conciliators will help you and the builder find a middle ground. This is one of the most effective forms of alternative dispute resolution real estate in practice today.

  • Step 5: Seek Arbitration (if applicable)

If conciliation fails and your agreement includes an arbitration clause, you may opt for RERA arbitration Maharashtra. Outcomes are binding and enforceable.

  • Step 6: Appeal if Necessary

You may challenge the RERA authority’s decision before the Real Estate Appellate Tribunal, and further to the High Court if needed.

4. Timelines & Documentation Tips

Typically, MahaRERA complaints are resolved within 60 days, while matters referred to the Conciliation Forum may take up to 90 days. If arbitration becomes necessary particularly when a builder-buyer agreement includes an arbitration clause the process usually concludes within 90 to 180 days. To enhance your chances of success in these proceedings, maintain well-organised documentation and adopt a respectful, professional tone in all communications.

Tip: Organised documentation and respectful communication greatly improve your success chances in ADR.

Legal Advice: Mistakes to Avoid

  • Don’t Delay: Time is crucial. Act fast once issues arise.
  • Don’t Ignore Communication: Even verbal or informal discussions must be followed up in writing.
  • Avoid Emotional Outbursts: Maintain a professional tone in all exchanges.
  • Never Sign Under Pressure: Don’t sign fresh agreements or settlement offers without legal review.
  • Avoid DIY Litigation: Even if RERA is consumer-friendly, legal nuances can complicate your case. Always consult a qualified advocate.

Conclusion: Your Legal Rights Are Real. Use Them.

Thanks to RERA, Indian homebuyers now have powerful tools like conciliation RERA builder forums and RERA arbitration Maharashtra processes to resolve grievances. These mechanisms make alternative dispute resolution real estate a fast, cost-effective, and practical way to get justice without entering an endless legal maze.

Being proactive, informed, and professionally advised can make all the difference when your dream home is at stake.

Disclaimer:

This article is intended for informational purposes only and does not constitute legal advice or a substitute for professional consultation. While it outlines general principles of alternative dispute resolution in real estate matters, the applicability of ADR methods such as arbitration or mediation can vary depending on the specific facts, contracts involved, and regional laws. Readers are strongly advised to consult a qualified legal professional or dispute resolution expert before taking any legal or strategic action related to property disputes.

About Tigde Law Firm

Tigde Law Firm is recognised among the top 10 law firms in India, offering full-service legal expertise in complex areas including EOW, ED, corporate lawpropertybuilder disputesdivorcecivilcommercial, and criminal cases. Headquartered in Thane with offices across Mumbai and Navi Mumbai, Tigde Law Firm serves clients nationwide with a strong team of over 100 lawyers. From local courts to the High Court and Supreme Court, TLF leads with trusted, result-driven advocacy.

Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputesdivorce, NCLT, civilcriminalcorporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

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