1. Timely delivery of plot to be part of promoter-buyer agreement

Timely delivery of plot to be part of promoter-buyer agreement

In the Draft Agreement for Sale Rules, under the Real Estate (Development & Regulation) Act 2016 "timely completion and delivery of the apartment or plot to the allottee is made the essence of the agreement to be signed between the promoter and allottee", an official release said.

By: | New Delhi | Published: August 2, 2016 1:02 AM
In the Draft Agreement for Sale Rules, under the Real Estate (Development & Regulation) Act 2016 "timely completion and delivery of the apartment or plot to the allottee is made the essence of the agreement to be signed between the promoter and allottee", an official release said. (Reuters) In the Draft Agreement for Sale Rules, under the Real Estate (Development & Regulation) Act 2016 “timely completion and delivery of the apartment or plot to the allottee is made the essence of the agreement to be signed between the promoter and allottee”, an official release said. (Reuters)

With a view to ensure timely delivery of apartment to the allottee, the Housing and Urban Poverty Alleviation department has firmed up draft rules under Real Estate Act which explicitly incorporate such commitment in the agreement to be signed between promoter and buyer.

In the Draft Agreement for Sale Rules, under the Real Estate (Development & Regulation) Act 2016 “timely completion and delivery of the apartment or plot to the allottee is made the essence of the agreement to be signed between the promoter and allottee”, an official release said.

On the other hand, allottee would be required to ensure timely payment, say the draft rules, approved by Housing and Urban Poverty Alleviation Minister M Venkaiah Naidu for five Union Territories.

To be applicable for UTs of Chandigarh, Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli and Lakshadweep, these draft rules will now be placed in public domain for comments and suggestions before final notification.

The Draft Agreement for Sale Rules specify roles, responsibilities and obligations of promoters and allottees.

The Draft clearly stipulate that “the promoter agrees and understands that timely delivery of possession of the (apartment/plot) is the essence of the Agreement,” the release said.

Under the Draft Rule, a promoter is required to clearly indicate the date of delivery to the allottee in the Agreement itself.

However, there is a provision for extension of this date in case of delay caused due to war, floods, drought, fire, cyclone, earthquake or any other calamity caused by nature.

Agreement would also mention the date of grant of commencement certificate, land title, number of storeys and plots in the project, carpet area and common area, and total price, among others.

Rules stipulate that total price is escalation free except when development changes are altered.

“In case of loss caused to allottee due to defective land title, promoter shall pay compensation and such claim shall not be barred by limitation provided under any law for the time being force,” the release said.

 

  1. No Comments.

Go to Top