The Real Estate (Regulation and Development) Act (RERA) is a landmark legislation that was designed to protect homebuyers and bring transparency to India’s real estate sector. One of the key provisions under RERA is the requirement for developers to register all their ongoing and upcoming projects with the regulatory body. This registration process requires developers to submit various details concerning the project, including the agreement for sale.
The agreement for sale is a crucial document that outlines the terms and conditions of the sale of a property between the developer and the buyer. Under RERA, the agreement for sale has been given specific guidelines to ensure that it is comprehensive and transparent. These guidelines aim to protect the interests of both the buyer and the developer.
One of the primary requirements for the agreement for sale under RERA is that it must be in writing and executed by both the developer and the buyer. The agreement must be drafted in a clear and concise manner, stating all the terms and conditions of the sale, such as the price, payment schedule, possession date, and other related details.
RERA mandates that the agreement for sale must also include a clause that provides the buyer with the right to obtain information related to the construction progress of the project. This information must be provided by the developer within fifteen days of the buyer’s request.
The agreement for sale must also include a provision for compensation in the event of a delay in possession. RERA has stipulated that developers must pay interest to the buyer at the rate of two percentage points above the State Bank of India’s lending rate in case of a delay in possession. The agreement for sale must specify the date of possession, and the compensation payable in case of any delay.
In conclusion, the agreement for sale plays a critical role in the purchase of a property under RERA. It is the buyer’s safeguard against any fraud or misrepresentation by the developer. It is therefore essential that buyers carefully review and understand the contents of the agreement for sale before signing it. Developers, on their part, must ensure that the agreement meets the standard RERA guidelines to protect their interests and maintain transparency with their buyers.