Karnataka Real Estate Regulatory Authority notifies sales agreement

BENGALURU: The Karnataka Real Estate Regulatory Authority (RERA) has notified the draft model sales agreement as per central government rules.

The K-RERA that started functioning over three years ago had faced a delay in model sales agreement due to a change in government and the absence of RERA chief in the state.

”The earlier versions of Draft RERA rules had a lot of dilution and we have opposed notification of the same and have been insisting for undiluted version notification of AFS as per model agreement notified by GOI,” said M S Shankar General Secretary.

Forum for Peoples collective Efforts.

As per the model sales agreement on the K-RERA, builder should have obtain the final layout plan, sanctioned plan, specifications and approvals for the project and should be registered with K-RERA. The builder will have to convey the final carpet area to the buyer after the construction of the building is complete and the occupancy certificate is granted by the competent authority.

The sales deed also mentions that if there is any new imposition or increase of any development charges after the expiry of the scheduled date of completion of the project, the same shall not be charged from the home buyers.

”If there is any reduction in the carpet area then the Promoter shall refund the excess money paid by Allottee within sixty days with annual interest at the rate prescribed from the date when such an excess amount was paid by the Allottee. If there is any increase in the carpet area, which is not more than three percent of the carpet area of the apartment, allotted to Allottee, the Promoter may demand that from the Allottee as per the next milestone of the Payment Plan, ”mentioned the agreement

For home buyers, the model agreement says that buyers can ask for refund if there is default on the part of the builder and stop the payment amongst other benefits. It also mentions agreement for sale need to be registered with sub-registrar office after sign by both allottee and promoter.

The Karnataka government notified Karnataka Real Estate (Regulation and Development) Rules-2017 in the state gazette in July 2018 with the setting up of Karnataka RERA.

However if the home buyers proposes to cancel/withdraw from the project without any fault of the promoter, the promoter is entitled to forfeit the booking amount paid for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 60 days of such cancellation.

According to Anarock research, among all states and UTs across the country, RERA has been fairly pro-active in states such as Uttar Pradesh, Maharashtra and Karnataka, among others.