Now, builders in Maharashtra will have to sign sale agreements with buyers mandatorily
Maharashtra Real Estate Regulatory Authority to direct developers to do so; buyers to benefit from decisionmumbai Updated: Mar 16, 2018 13:33 IST
The Maharashtra Real Estate Regulatory Authority (MahaRERA) will direct all developers of ongoing projects to compulsorily sign sale agreements with buyers.
The move comes after consumer body Mumbai Grahak Panchayat (MGP) pointed out that many developers do not sign a sale agreement despite the consideration amount paid exceeding 10% of the total cost. In the absence of agreement, buyers cannot file a complaint with the RERA, in case of disputes or delays, it pointed out.
It is quite a common practice for buyers to make an initial payment for booking a flat without signing a sale agreement with the builder.
Such buyers, however, cannot approach the RERA as it does not accept cases with no agreements, experts said. A well-known case was that involving Bhagtani builders. Several buyers, who had invested in its projects, appealed to MahaRERA following years of delay, but their pleas were dismissed because there were no registered sale agreements.
At an interactive session with RERA on Thursday, Shirish Deshpande, president of MGP, suggested that the housing regulator declare that all developers must register sale agreements, which will help secure buyers’ interests. “We have received many complaints where buyers either want a refund or want the developer to pay penalty for delays, but without a registered agreement, they are unable to approach MahaRERA,” Deshpande said. “The authority should declare this as standard practice for developers.”
Responding to the recommendation, MahaRERA chairperson Gautam Chatterjee said that it will consider making an announcement to all developers to register agreements for sale.
Chatterjee confirmed to HT that the regulator is planning to act on the suggestion. “The MahaRERA secretariat will be sending emails to all promoters to abide by provisions of section 13 of RERA Act, which requires promoters to execute and register agreements for sale, if the consideration amount collected exceeds 10%.”