Agreement for Sale under RERA 2017: What You Need to Know
The Real Estate (Regulation and Development) Act, 2016 (RERA) aims to regulate the real estate sector in India and protect the interests of homebuyers. One of the important provisions of RERA is the requirement of an Agreement for Sale between the developer and the buyer. In this article, we will explore the key aspects of the Agreement for Sale under RERA 2017.
What is an Agreement for Sale under RERA 2017?
An Agreement for Sale is a legal document that contains the terms and conditions of the sale of a property from the developer to the buyer. RERA has made it mandatory for developers to enter into an Agreement for Sale with the buyers before accepting any advances or bookings.
The Agreement for Sale under RERA 2017 includes various details such as the specifications of the property, the price, payment terms, delivery date, and other important clauses. The Agreement for Sale must be in writing, and the developer should provide a copy of the same to the buyer.
Key Features of an Agreement for Sale under RERA 2017
1. Standardization: RERA has introduced a standard format for the Agreement for Sale. This format is designed to protect the interests of homebuyers and ensure transparency in the transaction.
2. Registration: The Agreement for Sale must be registered with the relevant authority, as per the rules of the state in which the property is located. Registration of the Agreement for Sale ensures that the document is legally valid and enforceable.
3. Payment Schedule: The Agreement for Sale must clearly state the payment schedule, including the amount and due date for each payment. RERA has mandated that developers cannot ask for more than 10% of the cost of the property as an advance payment before entering into an Agreement for Sale.
4. Delivery Date: The Agreement for Sale must specify the delivery date of the property. If the developer fails to deliver the property within the agreed timeline, the buyer is entitled to compensation as per the provisions of RERA.
5. Defect Liability: The developer is responsible for any defects in the property for a period of five years from the date of possession. The Agreement for Sale should include a clause that specifies the developer`s liability for any defects in the property.
6. Termination: The Agreement for Sale can be terminated by either party in case of a breach of the terms and conditions. The Agreement for Sale should also include a clause that specifies the consequences of termination, including the refund of the amounts paid by the buyer.
Conclusion
An Agreement for Sale under RERA 2017 is a crucial document in a real estate transaction. It is important that homebuyers carefully review the Agreement for Sale and ensure that all the terms and conditions are fair and reasonable. RERA has introduced various provisions to protect the interests of homebuyers, and it is important that buyers are aware of their rights and obligations under the Act. As a homebuyer, it is always advisable to seek the services of a legal expert to review the Agreement for Sale before signing it.