Rera Registered Agreement

Initially, some of Maharera`s orders considered that the complaining buyer was not authorized to file a claim on the basis of the above letter of award, in the absence of a formally expressed “sale agreement.” It was decided that the interest law under Section 18 imposes a “sale agreement” as a precondition for the granting of interest to the homebuyer. To appreciate Maharera`s point of view in question, it would be wise to take into account this section: the ownership of all real estate must be clear and marketable, and it is said that as such it will only be when executing the deed of sale. However, in practice, buyers make a sales contract as a precautionary measure, although they are aware that it does not create title to a property. A deed of sale is considered an authentic instrument and also establishes a clear title to the property, since it is a document subject to the obligation, pursuant to Section 17, paragraph 1, of the Registration Act 1908. However, section 13 of the RERA Act 20161 stipulates that a sales contract must be registered. Although this is not the case with the Registration Act 1908. Therefore, the validity of the sale agreement always becomes an unresolved conflict. As the purchasers were not satisfied with the order of the aforementioned Authority, they applied to the RERA court in the first appeal procedure. The Tribunal found that a letter of attribution contained all the captures of a “sale agreement” and that, by law, it was specifically applicable and could not be set aside lightly. Accordingly, it advised the RERA authorities to take into account the conditions of the aforementioned letter of award and enforce them against the owners.

Similarly, due to the use of the term “in accordance with the terms of the sale agreement” in Section 19, it was found that the organizer had not committed a violation of SECTION 18,19 and 31 of RERA and that the completion date of the project, as recorded under RERA, is applicable and that purchasers are not entitled to interest under Section 18 reRA. As a result, an unregistered letter of award is treated as a binding contract between the home purchaser and the owner. Moreover, the provisions of the MOFA have not been repealed and must therefore be read with the provisions of RERA, if these provisions are not in contradiction with RERA. If the real estate project is not registered or the registration has been cancelled, a loan granted by banks and financial institutions to retail investors carries a high risk and uncertainty as to the conclusion of the real estate project. With regard to such a real estate project, the measures taken by the rera authority may harm the interests of this banking/financial institution. Even under the RERA, there is no provision that prevents the complainant from asserting his right to claim interest on late detention or repayment on the basis of the terms agreed in a letter of award. Indeed, the RERA act itself provides that a sale agreement is only required for sale if the buyer has paid more than 10% of the total remuneration. If the letter of award is not taken into account by the authorities, it would create an abnormal situation where, if less than 10% of the consideration is paid by the home buyers, it will lose all appeals against the owner only because the formal agreement is not registered, when it is prescribed by law. That certainly cannot be the intention of the legislature. If the sale agreement is inconclusive, does it raise another question as to the buyer`s ability to pursue the action in violation of the sales contract? This request was met under section 18 of the RERA Act, which states that the developer must compensate the purchaser if he was unable to complete the project and return possession of the property within the time frame set out in the sale agreement or sale agreement.

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