Advantage home buyers: standardised agreement for sale notified
The long wait for standardised, uniform agreement for sale across the State is over. The State government has notified the Karnataka Real Estate (Regulation and Development) (First Amendment) Rules, 2020.
The June 12 notification from the Housing Department lays down certain clauses, such as the promoter having to obtain ‘the final layout plan, sanctioned plan, specifications and approvals for the project’, agreeing to not make changes to approved plans, and having to register the project under KRERA. The draft Karnataka Real Estate (Regulation and Development) (Agreement for Sale) Rules, 2020 was first published this January.
RERA Karnataka Chairman M.R. Kamble told The Hindu said, “There is now uniformity in sale agreement between home buyers and developers throughout the State. The interest of home buyers is protected.”
The Forum for Peoples Collective Efforts (FPCE) concurred. “We are thankful to the government for notification of Karnataka Rera Rule for Agreement for Sale without diluting the rules, though delayed by more than three years. The earlier versions of the draft RERA rules had a lot of dilutions. We had opposed notification of the same and have been insisting on an undiluted version as per the model agreement notified by GOI,” the forum said.
Pointing out the major benefits of the new agreement, FPCE general secretary M.S. Shankar said, “As per the notified rules, the promoters are held responsible for registering the agreement for sale at the sub-registrar’s office and also for formation of the association of allottees, convey the common areas to the association, hand over the original title deed and related documents, and ensure transition of maintenance to the allottees’ association.”
Project possession has been a bitter bone of contention for long. The new agreement of sale specifies that in case a project is delayed beyond the date stipulated in the agreement except for reasons of force majeure, builders cannot ask for any price increase for whatever reason, including government fee and charges.
“The agreement of sale says that possession of units should be given to buyers only upon receipt of occupancy certificate, upon making the unit completely habitable with all assured amenities and facilities. This will make builders more accountable and transparent,” Mr. Shankar added.