According to K S Latha Kumari, secretary of Karnataka RERA, this agreement would allow a uniform procedure for all builders and project promoters. “For example, with this notification, the developer must register the purchase agreement document if he wishes to receive more than 10% of the total value of the property as a down payment. Previously, there was no guarantee for this amount paid by the consumer. This document will empower buyers. It will also help them understand the clauses they accept well in advance,” she said. It is a binding document for builders and buyers regarding all aspects related to the sale of a property, including the completion of the project, the conditions of sale, the deposit and other provisions. “Upon receipt of the certificate of completion / certificate of occupancy / letter of final approval for the development from the competent authority, the developer must offer the tenant in writing to the Assignee the ownership of the apartment / plot within the meaning of this agreement, which must be taken within two months of the date of issue of the certificate of completion / certificate of occupancy / letter of approval for the development.” indicates the document. RERA Karnataka Chairman M.R. Kamble told The Hindu: “There is now uniformity in the sale agreement between home buyers and developers across the state.
The interests of home buyers are protected. Article 13(2) of the RERA Act of 2016 refers to the respective RERA State to prescribe the format of the purchase contract. As a result, Karnataka RERA inserted Rule 8A (Sales Agreement Format) WEF of 12 June 2020. The excerpt from Rule 8A is – 5. In case of failures/delays that are not due to the developer (e.g.B. force majeure), the contract provides for a cancellation process in which the developer must refund the full amount. However, the developer would have made many payments, such as taxes. B, to the authorities and would not have been able to reimburse these taxes, etc. Professionals (legal/auditor) must understand the different provisions of RERA and their relevance in the preparation of the purchase contract. This helps professionals to advise/provide services to individuals/home buyers when buying/investing in real estate. Details of the progressive or mixed development should be set out in the agreement, as the proponent may have provided assurance that it will provide certain facilities and amenities that may be common to all members of all phases and that can be integrated once the overall development is complete.
FPCE Secretary General M.S. Shankar highlighted the main benefits of the new agreement, saying: “According to the notified rules, the promoters are responsible for registering the contract for sale in the sub-registrar`s office and also for establishing the Association of Assignees, transmitting the common areas to the association, handing over the original title deed and related documents. and ensure the transfer of the interview to the Association of Awardees. “We have requested an undiluted version of a sales agreement notified in accordance with the model agreement notified by the government. This is a farewell to a unilateral and biased sales agreement. This will certainly make developers more responsible,” Ms. Shankar, secretary general of the Forum for People`s Collective Efforts, told Moneycontrol. In the event of non-compliance by one of the contracting parties, i.e. the seller, to sell or take possession of the goods from the buyer, the buyer receives a right to certain performance, in accordance with the provisions of the Specific Reparations Act 1963, a similar right is also available to the seller under the contract. for the search for a specific service of the buyer. The Forum for the Collective Efforts of Peoples (FPCE) has given its agreement.
“We are grateful to the government for announcing the Karnataka Rera rule for the sale agreement without diluting the rules, even though it has been delayed by more than three years. Earlier versions of the draft RERA rules had many dilutions. We opposed the notification of the same and insisted on an undiluted version in accordance with the model agreement notified by the Indian government,” the forum said. A contract for the sale of immovable property is concluded on terms agreed between the parties in accordance with Article 54 of the Transfer of Ownership Act. A purchase agreement contains the promise to transfer a property in the future to meet certain conditions. The conclusion of the contract for compliance with these conditions is important and critical. The long wait for a standardized, unified agreement for sales across the state is over. The state government has notified the Karnataka Real Estate (Regulation and Development) (First Amendment) 2020 rules. The purchase contract must be registered with the Sub-Registrar`s office after being signed by the successful bidder and the promoter. (2) Applications, letters of assist, letters or other documents signed by the Successful Bidder in respect of the dwelling, land or building prior to the conclusion and registration of the contract for the purchase of such dwelling, land or building shall not be construed as restricting the rights and interests of the Successful Tenderer under the contract of sale or the law. “Differ from one promoter to another and from one agreement to another.
Even in the event of a delay of a project beyond the date specified in the contract, except for reasons of force majeure, builders cannot demand a price increase. In a great relief for home buyers, after a long delay, the state government is ready to approve the model sales contract in accordance with the provisions of the Real Estate (Regulation and Development) Act. Shankar Srinivasan (Karnataka Chapter Organizer – Fight for RERA) said: “This agreement, which is now being followed throughout the state of Karnataka, will benefit all home buyers of all economic classes. The format of the contract ensures that it is balanced and does not only favour the manufacturer, as was the case before. This will make the agreement much more transparent and hold the manufacturer accountable. An organizer may not accept an amount greater than ten percent of the cost of the apartment, land or building as a deposit or application fee from a person without first entering into a written purchase agreement with that person and registering the said contract for sale. under any law currently in force […].