Timely completion of housing projects and on time delivery of apartments or plots to home buyers by builders has been made the essence of the agreement to be signed between the builder and home buyers under the Real Estate (Development & Regulation) Act, 2016.
In the Draft Agreement for Sale Rules, under the Real Estate (Development & Regulation) Act 2016 “timely completion and delivery of the apartment or plot to the allottee is made the essence of the agreement to be signed between the promoter and allottee.
This has been explicitly incorporated in the draft Agreement for Sale Rules, 2016 under the Real Estate Act for the five union territories of Chandigarh, Andaman & Nicobar Islands, Daman & Diu, Dadra and Nagar Haveli and Lakshadweep that has been approved by the minister of housing & urban poverty alleviation Venkaiah Naidu.
Home buyers would also be required to ensure timely payments.
These draft rules for the five union territories will now be placed in public domain for comments and suggestions before final notification.
The Draft Agreement for Sale Rules, 2016 which specify roles, responsibilities and obligations of promoters and allottees besides a draft agreement to be signed under the act between promoter and allottee clearly stipulate "the Promoter agrees and understands that timely delivery of possession of (Apartment/Plot) is the essence of the Agreement".
While HUPA ministry is mandated to prepare such rules only for union territories, different states can adopt these model rules defined by HUPA. Under these draft rules, promoter is required to clearly indicate date of delivery of possession to the allottee in the agreement itself. However, there is a provision for extension of this date in case of delay caused due to war, floods, drought, fire, cyclone, earthquake or any other calamity caused by nature.
There shall be a clear mention in the agreement of the date of grant of commencement certificate, clear land title giving area of project and Khasra numbers, number of storeys and plots in the project, carpet area and common area, share of allottee in common area, total price etc.