Register sale agreements to get interest on home delays: Up-rera
The regulator on Thursday directed builders to follow the new agreement to sale format in registration of documents with the allottees.Updated: Jan 04, 2019 16:17 IST
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has said that a registered sale agreement is necessary for a homebuyer to seek interest in case of a delay in granting possession by a developer. The regulator on Thursday directed builders to follow the new agreement to sale format in registration of documents with the allottees.
A UP-Rera team held a meeting with representatives of 14 builders and discussed problems faced by them to ensure early delivery of apartments to the allottees. During the meeting, the builders’ representatives were also briefed about the new agreement to sale format.
“The state government has formed rules governing the sale and lease of property, prescribing a new format. Builders are directed to follow the new format. It is effective from October 17, 2018. In this format, all details of the projects and responsibilities of builders and allottees are to be mentioned. Allottees will pay the instalments in time and builders will hand over the possession as per the scheduled date. Cost details too have to be disclosed to avert any dispute in future,” UP-Rera chairman Rajive Kumar said.
“Presently, most builders get the agreement for sale signed by the allottee but do not register it. Now, registration of this is mandatory. Further, both the builder and the buyer will get same interest in case of delayed payments and refund, which will be normal rate of bank interest plus 1%,” said Kumar.
Giving details of the provisions under the new format, Kumar said the total price of an apartment is escalation free, except the increase which the allottee agrees to pay as per settled terms.
Further, a promoter shall not make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and without the previous written consent of the allottees as per the provisions of the Act. The allottee shall also have undivided proportionate share in the common areas.
The promoter shall abide by the time schedule for completing the project as disclosed at the time of registration of the project with the authority.
After obtaining the completion certificate or occupancy certificate as applicable and handing over physical possession of the apartment to the allottees, it shall be the responsibility of the promoter to hand over the necessary documents and plans, including common areas, to the association of allottees, officials from UP-Rera said.
First Published: Jan 04, 2019 16:17 IST