“8A. Purchase Agreement – (1) For the purposes of subsection (2) of section 13 of the Real Estate (Regulation and Development) Act, 2016, the purchase agreement must be in the format set out in Schedule A. But if we analyze Section 13(1) of the RERA Act of 2016, which states that a sales contract must be registered under applicable law, it means that a sales contract is registered in accordance with the provisions of the Registration Act 1908. Article 13(2) of the RERA Act of 2016 refers to the respective RERA State to prescribe the format of the purchase contract. As a result, Karnataka RERA inserted Rule 8A (Sales Agreement Format) WEF of 12 June 2020. The excerpt from Rule 8A is – 3. The agreement stipulates that any fee increase after the expiration of the scheduled end date/completion of the project will not be collected from the client in accordance with the RERA registration with the authority. 2. The agreement does not assume situations where multiple sub-projects may be registered under the ARPR in a single plan or larger plan.
In such situations, the common elements would be handed over in several stages, while the agreement stipulates that all the common parts would be handed over at the time of the delivery of the apartments. If the purchase contract is not concluded, does this raise another question as to whether the buyer can exercise recourse in the event of a breach of the purchase contract? It was answered in accordance with Article 18 of the RERA Law, which stipulates that the developer must compensate the buyer if he has not been able to complete the project and transfer ownership of the property within the time limits set in the sales contract or purchase contract. If the organizer does not do so, he can file a complaint with the RERA3 authority and claim compensation. If he is aggrieved by the order of the authority, he can appeal to the Real Estate Regulation Appeal Tribunal in accordance with section 44 of the RERA Act of 2016. However, the RERA Act of 2016 provides for a non-obstence clause in Section 89 and becomes applicable to the Registration Act of 1908 under the same RERA. On the other hand, it also raises some other questions, namely whether an agreement on the sale creates a right, title or interest in the property? Professionals (legal/auditor) must understand the different provisions of RERA and their relevance in the preparation of the purchase contract. This helps professionals to advise/provide services to individuals/home buyers when buying/investing in real estate. To understand the conflict between RERA and the Registration Act, it is important to understand the difference between the contract of sale and a deed of sale. This question arises because the registration of documents is usually done to guarantee the buyer a clear right and ownership of the property.
An agreement on the sale as such does not provide for a clear claim to the property. The Supreme Court ruled in Durgawati Devi v. Union of India2 that the execution of the purchase contract does not transfer ownership/ownership of the property and that ownership/title is transferred only by deed of transfer. Applying the provisions of § 88 of the RERA Act 2016, when analyzing the provisions of the two decrees, we can conclude that section 17 (2) (v) of the Registration Act 1908 denies the RERA Act 2016. Therefore, according to § 89 of the RERA Act 2016, the provisions of the Registration Act 1908 are not taken into account for the purposes of registering sales contracts. . With the notification of the format of the sales contract, it is mandatory for the promoter to follow the same format of the sales contract / content of the sales contract without diluting the provisions of the RERA 2016 Law, Karnataka RERA Rules 2017. It must therefore be concluded that the RERA Act of 2016 takes precedence over the Registration Act for the purposes of the contract of sale, as the contract of sale does not provide a clear title, but can be applied in court under the provisions of the RERA Act of 2016.
1. The sales contract shall be drawn up in the format notified by Karnataka RERA 5. In case of failures/delays that are not due to the developer (e.g.B. force majeure), the contract provides for a cancellation process in which the developer must refund the full amount. However, the developer would have a lot of payments, such as .B. Taxes, paid to the authorities and would not have been able to refund these taxes, etc. Differ from one promoter to another and from one agreement to another. An organizer may not accept an amount greater than ten percent of the cost of the apartment, land or building as a deposit or application fee from a person without first entering into a written purchase contract with that person and registering the said contract for sale. under any law currently applicable. When we analyze the provision, we can understand that the document to which it refers is a contract of sale. In addition, it is also stated that the contract of sale as such falls within the category of Article 17(2) of the Law on registration as a document which cannot be compulsorily registered. Article 13 (2) of the RERA Law of 2016 mentions that the content of such a purchase contract includes – Therefore, we can say that the provisions of the RERA Law 2016 prevail over the Registration Law 2016 only with regard to the contract of sale.
A sales contract is an agreement in which the seller promises to transfer future ownership of the property to the buyer if certain conditions are met. .