In a recent ruling, the Assam Real Estate Appellate Tribunal (REAT) has underscored the crucial responsibility of promoters in adhering to the prescribed format of Sale Agreements. The case, which involved a Guwahati-based couple and a builder, shed light on the significance of following the prescribed form, as outlined in the Assam Real Estate (Regulation and Development) Rules, 2017. This article delves into the details of the case, the REAT's ruling, and the implications it holds for both promoters and homebuyers.
The case involved a couple who entered into a registered Agreement for Sale with a promoter on October 31, 2017. The agreement was for the purchase of a residential flat in an RCC building located in Chatribari, Guwahati. However, the couple encountered several issues with the promoter, prompting them to approach the Real Estate Regulatory Authority (RERA) of Assam.
RERA's Order and Appeal:
After thorough consideration, the RERA issued its final order on December 7, 2022, which included 29 directions for the builder to comply with, along with a penalty of Rs. 50,000 for the non-compliance of signing the Sale Agreement in the prescribed format. Dissatisfied with the decision, the builder filed an appeal before the Assam REAT.
REAT's Ruling and Justification:
The Assam REAT, chaired by Mr. Justice (Retd.) Manojit Bhuyan and Shri Onkar Kedia, examined the builder's contentions. The builder argued that while the Agreement for Sale did not conform to the prescribed form, no malicious intent existed, and both parties had entered into the agreement with full knowledge. Additionally, the builder claimed that any discrepancies in the agreement could be rectified during the execution of the Conveyance Deed.
However, the Tribunal dismissed these arguments, relying on Sub-section (2) of Section 13 of Chapter III of the Real Estate (Regulation and Development) Act, 2016. This provision explicitly states that the Agreement for Sale must adhere to the prescribed form. Rule 9(1) of the Assam Real Estate (Regulation and Development) Rules, 2017 further specifies the format in Annexure 'A.' Consequently, the REAT upheld that it is the promoter's responsibility to prepare and enter into the Agreement for Sale strictly in accordance with the prescribed form.
The recent ruling by the Assam REAT reiterates the promoter's responsibility to draw up and enter into the Agreement for Sale in compliance with the prescribed format. The decision emphasizes the significance of adhering strictly to the prescribed format, ensuring transparency, clarity, and uniformity in real estate transactions. Promoters must be diligent in fulfilling their obligations and recognizing the critical role the prescribed format plays in protecting the rights and interests of buyers.
As the real estate sector continues to evolve, it is essential for all stakeholders, including promoters, buyers, and regulatory authorities, to stay updated with the rules and regulations governing the industry. Compliance with the prescribed format for Sale Agreements is not only a legal requirement but also a measure that fosters trust and transparency, ultimately benefiting all parties involved in real estate transactions.
Note: The information provided in this article about Assam Real Estate Regulatory Authority (ASSAM RERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Press Release on 29th May, 2023 before the Assam Real Estate Regulatory Authority
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