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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed that sale agreements between a developer and homeowners be annulled, and that sub-registrars make a record indicating that the sale agreements have been terminated and cancelled.
MahaRERA cancelled the sale agreements with four homebuyers who failed to make timely payments totaling an estimated INR 4 crore to the developer. This development highlights the importance of adhering to payment schedules outlined in the agreements.
Earlier, nine homebuyers in Pune had made partial payments (between 10-20%) for flats in projects by Gera Developments. These partial payments would amount to roughly INR 4 crore to INR 8 crore (assuming an average flat price of INR 50 lakh to INR 1 crore). However, they defaulted on subsequent installments despite repeated reminders and demand notices from the developer. Following this, Gera Developments approached MahaRERA seeking the termination of the agreements.
MahaRERA, recognising the need for consistent cash flow in ongoing projects, emphasised the homebuyers' obligation to fulfil their payment commitments as per the agreements. Five out of the nine homebuyers eventually cleared their dues. However, the remaining four did not respond to MahaRERA's directives to execute cancellation deeds.
As a result of their non-compliance, MahaRERA adjudicating officer WK Kanbarkar ruled in favour of the developer. The sale agreements for these four properties were officially cancelled, and the sub-registrar was instructed to reflect this termination in the records.
This case serves as a crucial reminder for both developers and homebuyers. Developers must ensure clear communication of payment schedules and take appropriate action in case of delays. Homebuyers, on the other hand, should meticulously plan their finances to meet their payment obligations of potentially crores of rupees. Delays can not only lead to financial penalties but also risk the cancellation of the property purchase.
This ruling highlights the growing role of MahaRERA in ensuring fair play in the real estate sector. Homebuyers can now rely on this regulatory body to enforce their rights and address grievances related to delayed projects or non-delivery. It's important to note that this is a specific case, and the cancellation process might vary depending on the circumstances and the specific clauses within the sale agreement. Homebuyers facing financial difficulties should proactively communicate with the developer to explore possible solutions or revised payment plans.
By understanding their rights and responsibilities, both developers and homebuyers can navigate the real estate market with greater confidence and transparency.
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