Relaxations in registration of agreement sale till March 2022 to benefit both the promoters and the buyers,The Real Estate Regulatory Authority (RERA), Rajasthan.
After RERA was set up in the state, the regulator directed the builders to follow the new agreement to sale format in registration of documents with the allottees.
An official informed, Sec 13(1) of RERA Act 2016 states that a promoter shall not accept a sum more than 10% of the cost of the apartment as an advance payment or an application fee from a person without first entering into written agreement for sale and register it with sub- registrar. The order dated May 6 reads, in view of the corona pandemic (May 15, 2020) it was ordered that once an agreement for sale is executed on a stamp paper of appropriate value between promoter and the allottee, pending registration of the agreement should be registered preferable in four months or within eight months of execution. “Now, in view of the second wave of Corona pandemic, the order dated May 15 2020, shall continue to be in force till March 31, 2022.”
The RERA has also allowed the allottees to deposit the instalments. Moreover, it has directed the banks to release the loan amount. The order further reads, “Accordingly, the allottes are allowed to deposit instalments and the banks /financiers of the allottess are allowed to sanction housing loan for the sold unit and disburse the due amount on the basis such executed agreement for the sale. However, after the registration of such agreement within the time stipulated under the Registration act 1908 the registered document should be deposited with concerned bank,” reads order.
These directions would apply on only such units which do not involve transfer of possession of sold units.
An official informed, the registration of agreements of sale is an important document as it reduces many litigations.
“Earlier many unscrupulous property owners enter into agreements of sale and take huge earnest money and advance, and then sell the property to others, thereby plunging the original agreement holder and the subsequent purchaser into litigation. After RERA came into force these things gradually ended.”
