Karnataka RERA notifies model sales agreement after 3 years

Karnataka RERA has notified the model sales agreement after almost three years. The document makes it clear that homebuyers can seek a refund and also stop payment in case there is a default on the part of the developer. It mandates that the agreement for sale has to be registered with the sub-registrar’s office after being signed by the builder and the buyer.

“We have been demanding an undiluted version of a notified agreement for sale as per model agreement notified by the government. It’s good bye to one-sided and biased agreement for sale. This will surely make the developers more accountable,” MS Shankar, General Secretary, Forum for Peoples Collective Efforts, told Moneycontrol.

“The promoter, upon obtaining the completion certificate/occupancy certificate/final approval letter for layout from the competent authority shall offer in writing the possession of the apartment/plot to the allottee in terms of this agreement to be taken within two months from the date of the issue of completion certificate/occupancy certificate/final approval letter for layout,” the document stated.

The developer will have to communicate the final carpet area to the buyer after the building is complete and the occupancy certificate is granted by the competent authority

It also clarified that the promoter will hand over the common areas to the association of allottees after obtaining the completion/occupancy certificate from the competent authority.

Details of the phased development or mixed development should be captured in the agreement as the promoter may have assured he will provide certain facilities and amenities, which may be common to all allottees of all the phases and which may be integrated once the entire development is complete.

The document provides for a structural defects warranty and any other defects in workmanship for five years.

It also states that the promoter would be responsible for providing essential services in the project till the time the association of allottees takes over.

Also, in case of any project is delayed beyond the stipulated date provided for in the agreement, except for the reasons of force majeure, builders cannot seek a price increase.

The agreement for sale needs to be registered with the sub-registrar’s office after being signed by both the allottee and the promoter.

The Karnataka government had notified Karnataka RERA (Regulation and Development) Rules-2017 in the state gazette in July 2018 following the setting up of Karnataka RERA.