Timely delivery of housing projects essence of builder-home buyer agreements under RERA

NEW DELHI: Timely completion of housing projects and on time delivery of apartments or plots to home buyers by builders has been made the essence of the agreement to be signed between the builder and home buyers under the Real Estate (Development & Regulation) Act, 2016.

This has been explicitly incorporated in the draft Agreement for Sale Rules, 2016 under the Real Estate Act for the five union territories of Chandigarh, Andaman & Nicobar Islands, Daman & Diu, Dadra and Nagar Haveli and Lakshadweep that has been approved by the Minister of Housing & Urban Poverty Alleviation Venkaiah Naidu.

Home buyers, on their part, would be required to ensure timely payments.

These draft rules for the five union territories will now be placed in public domain for comments and suggestions before final notification.

The Draft Agreement for Sale Rules, 2016 which specify the roles, responsibilities and obligations of promoters and allottees besides a draft agreement to be signed under the act between promoter and allottee clearly stipulate that “The Promoter agrees and understands that timely delivery of possession of the (Apartment/Plot) is the essence of the Agreement”.

While the ministry of HUPA is mandated to prepare such rules only for union territories, different states can adopt these model rules defined by HUPA.

Under these draft rules, promoter is required to clearly indicate the date of delivery of possession to the allottee in the agreement itself. However, there is a provision for extension of this date in case of delay caused due to war, floods, drought, fire, cyclone, earthquake or any other calamity caused by nature.

Under these Draft Agreement for Sale Rules, 2016, there shall be a clear mention in the agreement of the date of grant of commencement certificate, clear land title giving the area of project and Khasra numbers, number of storeys and plots in the project, carpet area and common area, share of allottee in common area, total price etc.

Total price will include cost of land, cost of construction of apartment and common areas, internal and external development charges, taxes, cost of electric wiring and fire-fighting equipment. Rules stipulate that total price is escalation free except when development changes are altered.

In case of loss caused to allottee due to defective land title, promoter shall pay compensation to the allottee and such claim shall not be barred by limitation provided under any law for the time of being in force.

Credits ET Realty

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