The Real Estate (Regulation and Development) Act, 2016 (RERA) is a landmark law that was introduced to regulate and promote transparency in the real estate sector. One of the key provisions of RERA is the requirement for developers to use an “agreement for sale” when selling properties under construction.
An agreement for sale is a legally binding document that outlines the terms and conditions of the sale of a property under construction. It is an important document that protects the interests of both the developer and the buyer. The agreement for sale is drafted by the developer and needs to be registered with the appropriate authorities to be legally valid.
Under RERA, the agreement for sale needs to contain specific details such as the timeline for completion of the project, the price and payment schedule, details of the amenities and facilities that will be provided, and the penalties for delays in construction.
One of the key benefits of having an agreement for sale is that it protects the interests of the buyers. The agreement ensures that the buyer gets the property as per the specifications mentioned in the agreement. If there are any deviations from the agreement, the buyer has the right to seek compensation from the developer.
Another benefit of the agreement for sale is that it helps to ensure timely completion of the project. The developer is required to adhere to the timeline mentioned in the agreement and can be penalized in case of delays.
In addition to the above benefits, the agreement for sale under RERA also provides for the establishment of a separate bank account for each project. This ensures that the funds collected from the buyers are used only for that specific project and not diverted to other projects.
In conclusion, the agreement for sale under RERA is a crucial document that protects the interests of both the developer and the buyer. It provides transparency and ensures timely completion of the project. As a professional, it is important to highlight the importance of the agreement for sale under RERA to potential property buyers and developers.