If you are about to buy a property in Maharashtra, make sure to get a registered sale agreement if you want to seek interest on delay by the real estate developer in granting possession. Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that a registered agreement is necessary for a home buyer if he wants to seek interest on the delay by the real estate developer in granting possession.
Although the registered sale agreement is already mandatory in such transactions, it is seen that buyers, usually investors, continue to rely only on letter of allotment even after making a significant payment to the developer and tend to not enter into a sale agreement to delay paying stamp duty, goods and service tax (GST) and other charges.
The ruling was delivered as verdict during a hearing when home buyers Niraj Sanghia and Ami Trivedi approached MahaRERA to complain against developer Unique Shanti Realtors, The Economic Times reported. As per the complaint, the buyers had purchased a flat in the developer’s residential project on Mira Road through a letter of allotment dated July 16, 2013.
The developer reportedly had promised to hand over possession by 2017 but failed to do so. The complainants were pleading to MahaRERA that the developer be directed to execute the agreement of sale and pay them interest for the delay in handing over possession.
During his verdict, MahaRERA chairperson Gautam Chatterjee reportedly pointed out that as per the provisions in RERA, if the developer fails to give possession of an apartments, plot or building in accordance with the terms of an agreement for sale and the allottee is interested in withdrawing from the project, he can get the amount paid so far returned with interest.
And if the home buyer is not looking to withdraw from the project, then the developer is expected to pay interest for every month of the delay till the possession. However, since no agreement for sale has been executed and registered ever between the parties, this provisions act does not apply to the present case, said Chatterjee.
Chatterjee then directed both the parties to execute and register the agreement for sale and advanced the date of possession by a year.