Noida: RERA begins drafting uniform ‘builder-buyer’ agreement
Due to ambiguity, arbitrary provisions and poor drafting of the ‘agreement to sale’ document (called builder-buyer agreement), property buyers have to suffer at the hands of builders and face long litigation in case of disputes.noida Updated: Nov 14, 2017 22:05 IST
The real estate regulatory authority (RERA) on Tuesday started the process of drafting the ‘agreement to sale’ document for homebuyers and builders with an aim to end ambiguity in property sale.
Due to ambiguity, arbitrary provisions and poor drafting of the ‘agreement to sale’ document (called builder-buyer agreement), property buyers have to suffer at the hands of builders and face long litigation in case of disputes.
Mukul Singhal, principal secretary of housing and urban planning and interim chairman of RERA , on Tuesday discussed the ‘agreement to sale’ provisions in detail with the builders, officials and homebuyers at the Indira Gandhi Kala Kendra building in Sector 6.
“We have discussed the structure of the document with all stakeholders. Now, we will prepare a draft of ‘agreement to sale’ document. Subsequently, we will upload it on the RERA website so that anyone can go through it and understand the rules. The objective of the document is to ensure protection of rights of consumer and builders,” Singhal said.
The Union government, while drafting RERA provisions, made it clear that ‘agreement to sale’ document, which is signed between the buyer and the builder at the time of property sale, should be balanced, clear and protect consumer rights.
This was done in response to the demands of homebuyers, who alleged that in the absence of tough laws, the builders cheat buyers by signing a lopsided builder-buyer agreement.
The Central RERA did not specify the exact time when the document or provisions of ‘agreement to sale’ will be finally approved by the state governments.
“We will very soon upload it online for buyers, builders and other stakeholders. The state government will approve the same without any delay,” Singhal said.
The builder-buyer agreement or ‘agreement to sale’ has a set of provisions about the flat (or other property) size, layout, delivery and other supporting facilities. It has provisions that have to be adhered to by both buyer and builder.
“It is a very crucial document because the court delivers judgments on the basis of this document. As of now, builders were signing this agreement arbitrarily to harass buyers in the absence of proper guidelines. We hope that now, after RERA finalises a document to be followed by all builders, it will help buyers,” said SK Nagrath, president, Jaypee Aman flat buyers’ welfare association.
The Confederation of real estate developers association of India (CREDAI) that discussed the issues with the officials gave suggestions on the provisions the document should contain.
“Of course, we want that the ‘agreement to sale’ should be universal. It should be balanced so that it can protect homebuyer rights. We want unscrupulous builders to face the law and at the same time, law must encourage the development of this sector,” said Getambar Anand, CREDAI president.
The Real Estate (regulation and development) Act, 2016, came into force on May 1 to protect homebuyers from unscrupulous developers.
Under the Act, the state had in August set up a real estate regulatory authority, a website and hired officials for the timebound disposal of homebuyer grievances. In compliance with the Act, the UP government had in the first week of August appointed with an aim to deal with the issues in the real estate sector.