Will RERA execute the builder-buyer agreement as the Builder fails to do so?

rera-execute-the-builder-buyer-agreement-as-the-builder-fails-to-do-so

After the implementation of Real Estate (Regulation and Development) Act, 2016, any person who is aggrieved because of the delay in execution of buyer builder agreement after payment of more than 10%  of the cost of apartment/plot/building can a file a complaint before RERA Authority of the State for execution of the agreement. If builder denies to execute the same, the Secretary has power to enter in to the agreement on behalf of the Respondent at cost of Complainant.

In this regard, recently, the complainant filed a case before MAHARERA against Respondent and argued that he has booked a flat and paid more than 10% of the total consideration of the flat, however, Respondent failed to execute the agreement for sale in complainant’s favor. Consequently, It amounts to contravention of Section 13 of Real Estate (Regulation and Development) Act,2016. Hence, MAHARERA authority directed to the Respondent to execute the agreement for sale in the favor of the Complainant. 20,000/- towards the cost of the complaint and a penalty of Rs. 50,000 is also imposed under section 61 of RERA for contravention of Section of 13 of the RERA Act.

In addition of the above it is a landmark judgment wherein it was held that if Respondent failure to execute and register the agreement, the Secretary of MAHARERA shall execute and register the agreement on behalf of the respondents at the cost of the complainant.

Thus, the agreement for sale executed by the Secretary of MAHARERA will be deemed to be the agreement executed by the respondent himself and shall be binding on them.

In the view of the above it can be concluded a builder cannot accept more than 10%  of the cost of apartment/plot/building until he enters in to the buyer builder agreement. Further, if he accepts more than 10% of the cost of apartment/plot/building without entering in to the agreement, the aggrieved has remedy to move to secretary of the State and enter in to the agreement which will be deemed to be the agreement executed by the respondent himself and shall be binding on him.

Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.

Leave a Reply

Your email address will not be published. Required fields are marked *