By AW Research
The Model Agreement for Sale under the Real Estate (Regulation and Development) Act, 2016 (RERA) has been introduced to bring about transparency and safeguard the interests of both homebuyers and developers. This agreement serves as a crucial document outlining the terms and conditions governing the sale of a property. Here are the key highlights of the Model Agreement for Sale under RERA:
- Detailed Project Information: The agreement mandates developers to provide comprehensive details about the project, including land title status, approvals, timeline, and specifications of the construction. This ensures that buyers are well-informed about the property they are investing in.
- Price and Payment Schedule: The agreement clearly states the total cost of the property along with the payment schedule. Developers are prohibited from demanding more than 10% of the total cost as an advance without entering into a written agreement.
- Carpet Area Definition: RERA mandates the sale of properties based on carpet area, which excludes the area covered by walls. The agreement must specify the carpet area of the property, preventing any ambiguity in measurement.
- Project Delays and Compensation: In case of project delays, developers are liable to compensate buyers with interest for the period of delay. The agreement outlines the penalty for delays and provides buyers with the option to withdraw from the project with a refund if timelines are not met.
- Defect Liability Period: Developers are obligated to rectify any structural defects in the property within a specified period after possession. The agreement should clearly define this defect liability period, ensuring that buyers receive quality construction.
- Title of Property: The agreement ensures that the developer has a clear title to the land on which the project is constructed. This helps in mitigating legal risks for the buyers.
- Right to Information: Buyers have the right to seek information regarding the project, including sanctioned plans, layout, stage-wise completion schedule, and any alterations made during the construction phase.
- Dispute Resolution Mechanism: The agreement provides for a dispute resolution mechanism through RERA authorities or an adjudicating officer. This ensures speedy resolution of conflicts between buyers and developers.
- Registration of Agreement: The agreement needs to be registered with the respective state’s RERA authority, adding legal sanctity to the document.
- Prohibition of Unilateral Changes: Developers are barred from making unilateral changes to the agreement without the consent of the buyer, preventing any unfair practices.
In conclusion, the Model Agreement for Sale under RERA aims to create a fair and transparent framework for property transactions, protecting the interests of both buyers and developers. It sets standards for accountability, quality, and timely delivery, fostering trust and confidence in the real estate sector. Buyers are encouraged to carefully review the agreement and seek legal advice to ensure a smooth and secure property purchase process.
