MahaRERA Directs Builder to Execute Agreement for Sale Despite Post-Booking Delays

MahaRERA Upholds Buyer's Right to Agreement for Sale Amidst Delays

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has delivered a significant ruling, underscoring a promoter's (builder's) unwavering obligation to execute an Agreement for Sale under the Real Estate (Regulation and Development) Act 2016. This directive came in a recent complaint where a builder was found to be in default for not formalising the agreement, despite allegations of delays originating from the purchaser's side post-booking.

Statutory Requirement for Agreement for Sale

The RERA Act 2016, specifically Section 13, mandates that a promoter shall not accept more than 10% of the property's cost as advance payment or application fee without first entering into an Agreement for Sale with the allottee. This agreement must be registered. The recent MahaRERA order highlights that this statutory obligation remains paramount, irrespective of subsequent communication or alleged delays by the allottee in completing documentation or payments.

The Case in Focus

The dispute arose when a homebuyer, after booking a unit and paying the initial booking amount, alleged that the builder refused to execute the Agreement for Sale. The builder countered that the delay was attributable to the purchaser, who allegedly failed to provide necessary documents or make subsequent payments within the stipulated time, thus causing the builder to face difficulties in formalising the transaction. The builder argued that the purchaser's actions amounted to an abandonment of the booking.

MahaRERA's Ruling

MahaRERA, after reviewing the submissions, found that the core issue was the non-execution and non-registration of the Agreement for Sale. The Authority held that:

• The promoter's obligation to execute an Agreement for Sale is a primary statutory duty once a booking amount exceeding 10% of the unit cost is received.
• Any subsequent issues related to payments or documentation should be addressed within the framework of the duly executed and registered Agreement for Sale, which provides the terms and conditions for both parties.
• A builder cannot use an allottee's alleged non-compliance post-booking as a justification to avoid the fundamental requirement of executing the Agreement for Sale.

Consequently, MahaRERA directed the builder to execute and register the Agreement for Sale with the allottee within a specified timeframe. This ruling serves as a crucial reminder for both promoters and allottees regarding the sanctity of the Agreement for Sale as the foundational document for property transactions under RERA.

Implications for Developers and Buyers

This decision reinforces the protective framework established by RERA for homebuyers. For developers, it underscores the need for strict adherence to Section 13 of the RERA Act 2016 and meticulous record-keeping of communication and payment demands to avoid future disputes. It also clarifies that potential issues with a buyer's performance do not absolve the promoter from their initial statutory duties.