If all goes as per plan, a buyer can claim ownership of an apartment in three months of the complex getting an all-clear approval from the authorities.
The draft agreement for Sales Rules, 2016, under the Real Estate (Development & Regulation) Act, 2016 firmed up by the Union housing and urban poverty alleviation ministry on Monday proposed a set of more stringent norms that would require developers to handover houses within 90 days to buyers after receiving the occupancy certificate.
An allottee can stop making payments or even terminate the sale agreement if a developer fails to provide “ready to move in possession” within the specified time. In case of termination, a developer will have to refund the entire money paid by the allottee along with interest, within 45 days of receiving the termination notice.
However, if an allottee cancels his allotment or withdraws from the project without any fault of the promoter, the latter is entitled to forfeit the booking amount paid for the allotment.
The ministry will soon put up the rules in the public domain for comments and suggestions before notifying it. While the draft rules will apply to the five Union territories, states can take a cue from them and frame rules. For Delhi, the Union urban development ministry will frame the rules.
As per the draft rules, the promoter will have to compensate the allottee in case of any loss incurred due to defective title of the land on which the project is being developed.
The draft norms have strict clauses for allottees also in case they default on payment. They will be liable to pay interest to the promoter on the unpaid amount as per the rates specified. If the allottee continues to default, the promoter can cancel the allotment by deducting the booking amount.
In case it becomes impossible for the developer to implement the project, he will have to refund the entire amount received within 45 days.
The Act makes it mandatory for builders developing a project where the land exceeds 500 square metres to register themselves with the regulatory authority before launching or even advertising their project.