Maharashtra RERA issues directive regarding fixed sale deed terms

The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently published an order outlining the model agreement for sale's non-negotiable terms. The RERA Act requires that promoters to upload the proforma of the purchase agreement along with the application for registration of a real estate project. The selling deed must follow all rules and be in accordance with the Act's guidelines and the model form of agreement.

According to the MahaRERA authority, many a times the proforma of the agreement for sale that has been uploaded does not follow the model form. While modifications to the agreement for sale are permissible by MahaRERA, it is only allowed to the extent of assisting the allottee in fully understanding them. Further, all modifications must be noted in the deviation sheet and uploaded accordingly. The contracts too don't follow the RERA model form. Key provisions that include the builder's liability for structural flaws for a period of five years, acquiring OC, forming a society and executing registered conveyance deeds in favour of societies in a timely way are non-negotiable but often left out by errant builders.

The Real Estate (regulation and development) Act 2016 was established in the year 2016 and came into effect on 1st May 2017. The passing of this Act was considered a watershed moment in Indian real estate as it was aimed to protect home buyers while holding builders more accountable. It intended to do so by ensuring proper disclosure of projects, compulsory registration, and establishing an adjudicating mechanism for speedy grievance redressal amongst other things. The RERA Act 2016 is applicable to both residential and commercial real estate. It does not however provide for rental transactions or resale transactions.

Next (Keystone Realtors to enter a joint venture to develop a project in Mahim)

Maharashtra RERA issues directive regarding fixed sale deed terms

This Month

Overview

Explore

Join Us