KNOW RERA

The state RERA rules, made un­der the Real Es­tate Reg­u­la­tory Au­thor­ity Act, make agree­ment for sale as the bedrock of ac­count­abil­ity and trans­parency in the hous­ing sec­tor

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Mu­niesh­wer A Sa­gar mu­niesh­wer.sa­gar@hin­dus­tan­times.com

The state Real Es­tate Reg­u­la­tory Au­thor­ity rules made un­der the RERA Act make agree­ment for sale as the bedrock of ac­count­abil­ity and trans­parency in the hous­ing sec­tor.

CHANDIGARH: The Real Es­tate( Reg­u­la­tory and Devel­op­ment) Act of 2016 and the state rules make agree­ment for sale as the foundation of the buyer-builder re­la­tion­ship bind­ing both in a set of du­ties and rights.

Un­der Sec­tion 13 of the Act, a builder has to en­ter into an agree­ment for sales with the buyer, be­fore ac­cept­ing book­ing amount of more than 10% of the to­tal price. The agree­ment of sale has to be reg­is­tered.

The sec­tion reads, “A pro­moter shall not ac­cept a sum more than 10% of the cost of the apart­ment, plot, or build­ing as the case may be, as an ad­vance pay­ment or an ap­pli­ca­tion fee, from a per­son with­out first en­ter­ing into a writ­ten agree­ment for sale with such per­son and reg­is­ter the said agree­ment for sale, un­der any law for the time be­ing in force.”

The Act stip­u­lates that the agree­ment for sale will spec­ify the par­tic­u­lars of devel­op­ment of the project, in­clud­ing con­struc­tion of build­ing and apart­ments, along with spec­i­fi­ca­tions and in­ter­nal devel­op­ment works and ex­ter­nal devel­op­ment works, the dates and the man­ner by which pay­ments to­wards the cost of the apart­ment, plot or build­ing, as the case maybe, are to be made by the al­lot­tees and the date on which the pos­ses­sion of the apart­ment, plot or build­ing is to be hande­dover, the rates of in­ter­est payable by the pro­moter to the al­lot tee and the al lot tee to the pro­moter in case of de­fault.

The Ha ryan a Real Es­tate( Reg­u­la­tion and Devel­op­ment) Rules of 2017 and the Pun­jab State Real Es­tate (Reg­u­la­tion and De­velop- ment) Rules of 2017, un­der the power en­shrined un­der the Act, lay down the for­mat for an agree­ment of sale.

Un­der the state rules, “Any ap­pli­ca­tion let­ter, al­lot­ment let­ter or any other doc­u­ment signed by the al­lot­tee, in re­spect of the apart­ment, plot or build­ing, prior to the ex­e­cu­tion and regis­tra­tion of the agree­ment for sale for such apart­ment, plot or build­ing, as the case may be, shall not be con­strued to limit the rights and in­ter­ests of the al­lot­tee un­der­the agree­ment for sale.”

The builder has to sub­mit the de­tails, in­clud­ing a per­forma of agree­ment for sale to the state Real Es­tate Reg­u­la­tory Au­thor­ity at the time of the project regis­tra­tion and for up­load­ing on the au­thor­ity’s web­site.

The builder has to en­ter into an agree­ment for sale with the buyer as perth es­tate rules, as it is one of the con­di­tions laid down for is­suance of the cer­tifi­cate of the project.

WAR­RANTIES

Un­der the state rules, builder has to give rep­re­sen­ta­tion and war­ranty to the buyer in the agree­ment for sales. If vi­o­lated, the builder is li­able to fine and im­pris­on­ment. Some of the builder war­ranties in­clude clear ti­tle of the­land, req­ui­site ap­provals taken from the com­pe­tent au­thor­i­ties, no en­cum­brances and lit­i­ga­tions pend­ing with re­spect the project, and no re­stric­tions on the builder from sell­ing the prop­erty or en­ter­ing into sales agree­ment with the buyer, no gov­ern­ment no­tice re­ceived for the project, he will con­tinue pay pend­ing gov­ern­ment charges, and he will de­liver peace­fully the pos­ses­sion of the prop­erty to the buyer and the project to the as­so­ci­a­tion of buy­ers.

AC­COUNT­ABIL­ITY

There are many clauses in the pre­scribed agree­ment of sale that in­cor­po­rate ac­count­abil­ity of both buyer and the builder.

The agree­ment of sales, as per the state rules, must men­tion the cases in which the builder is con­sid­ered un­der a con­di­tion of de­fault, if he fails to de­liver timely pos­ses­sion or if his busi­ness as a de­vel­oper is dis­con­tin­ued on ac­count of sus­pen­sion or re­vo­ca­tion of his regis­tra­tion un­der the pro­vi­sions of the Act or the rules or reg­u­la­tions made there un­der. In such cases, the agree­ment em pow­ers the buyer to stop mak­ing pay­ments and ter­mi­nate the agree­ment it­self.

The builder has to com­pen­sate the buyer in case of any loss caused to him due to de­fec­tive ti­tle of the land, on which the project is be­ing de­vel­oped or has been de­vel­oped.

In case of de­lay in hand­ing over of pos­ses­sion, the re­fund to the al lot tee must be made within 45 days of it be­com­ing due with re­spect to the agreed date.

TRANS­PARENCY

The builder has to clearly men­tion in the agree­ment, the own­er­ship records and the le­gal sta­tus of the prop­erty on which the project is com­ing up.

The builder has to clearly men­tion in the agree­ment it­self the de­tails of the com­mence­ment cer­tifi­cate for the project, the ap­proved fi­nal lay­out plan, sanc­tioned plan, spec­i­fi­ca­tions and other ap­provals taken. He also must dis­close the his regis­tra­tion num­ber, and the regis­tra­tion num­ber of the project.

In the agree­ment, the builder must give the to­tal price of the prop­erty based on the carpet area. It should also in­clude the, “break up of the amounts such as cost of apart­ment, cost of ex­clu­sive bal­cony or veran­dah ar­eas, cost of ex­clu­sive open ter­race ar­eas, pro­por­tion­ate cost of com­mon ar­eas, pref­er­en­tial lo­ca­tion charges, taxes, and main­te­nance charges.”

The to­tal price in­cludes the book­ing amount, re­cov­ery of price of land, con­struc­tion of the com­mon ar­eas, in­ter­nal devel­op­ment charges, ex­ter­nal devel­op­ment charges, taxes, cost of pro- vid­ing elec­tric wiring, elec­tri­cal con­nec­tiv­ity to the apart­ment, lift, wa­ter line and plumb­ing, fin­ish­ing with paint, mar­bles, tiles, doors, win­dows, fire de­tec­tion and fire­fight­ing equip­ment in the com­mon ar­eas, main­te­nance charges and in­cludes cost for pro­vid­ing all other fa­cil­i­ties, ameni­ties and spec­i­fi­ca­tions to be pro­vided within the prop­erty and the project, as per the state RERA rules.

The to­tal price is es­ca­la­tion-free ex­cept in­creases due to in­crease on ac­count of devel­op­ment charges or any other in­crease in charges which maybe levied or im­posed by the com­pe­tent au­thor­ity from time to time.

The builder can’t charge from an al­lot­tee any ad­di­tional amount in lieu of in­crease in the taxes after the ex­piry of the sched­uled date of com­ple­tion of the project.

The agree­ment for sale must in­clude a com­mit­ment from the builder to con­firm the fi­nal carpet area after the con­struc­tion is com­plete and the oc­cu­pancy cer­tifi­cate is granted by fur­nish­ing the de­tails of the changes in the carpet area.

HT PHO­TOS

The builder has to sub­mit the de­tails, in­clud­ing a per­forma of agree­ment for sale to the state RERA at the time of the project regis­tra­tion and for up­load­ing on the au­thor­ity’s web­site.

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