FAQ RELATED TO RIGHTS OF ASSOCIATION OF ALLOTTEES
Q.1 Is completion certificate and occupancy certificate to be made available to allottees?
A.1 Yes, when promoter obtains the completion certificate and occupancy certificate then the same will be made available to allottees individually or to Association of Allottees.
Q.2 Is right related to insurance will be transferred to Association of Allottees?
A.2 Promoter shall be liable to pay premium and charges in respect of the insurance and such will be transferred for the benefit of the allottees or Association of Allottees.
Q.3 To whom all the necessary document and plans, after handing of physical possession shall be transferred?
A.3 All the documents and plans after handing of physical possession shall be transferred to Association of Allottees.
Q.4 What if the project is developed on leasehold land?
A.4 Promoter after payment of all dues and charges will make available lease certificate to Association of Allottees.
Q.5 If registration of the project is revoked then what is the right of Association of Allottees?
A.5 In case registration is revoked then Association of Allottees shall have the first right for refusal for carrying out of the remaining development works.
FAQ RELATED TO RIGHTS OF ALLOTTEES
Q.6 What information is to be given to the allottees?
A.6 He will be entitled to obtain information related to sanctioned plans, layout plans and other details of the project.
Q.7 If promoter breaches terms of agreement for sale then what will be the remedies available?
A.7 (i) If Allottee wants to withdraw from the project then he will be entitled for refund along with the interest and compensation.
(ii) If Allottee does not wish to withdraw then he shall be paid interest for every delayed month.
Q.8 If allottees makes advance or deposit on the basis of false incorrect statement contained in any notice, advertisement or prospectus then what will be the remedies available?
A.8 Allottees can withdraw from the project and will be entitled for refund along with the interest and compensation. Also if such person is not Allottee but affected investor then also he can claim relief.
Q.9 In case of defective title what are the rights of allottees?
A.9 Allottees will be entitled for compensation for any loss caused to him due to defective title of the land, and there is no time limit for claiming of such compensation.
Q.10 What are the provisions for execution of Agreement to Sale?
A.10 Only up to 10% of the cost of the apartment, plot or building can be accepted by the promoter before executing the agreement for sale. After that no promoter can accept any money from allottees without Agreement to Sale being registered.
Q.11 Where can allottees file their complaints and demand for remedy?
A.11 Aggrieved person may file complaint with Adjudicating Authority for interest and compensation under section 12, 14, 18 and 19.
Q.12 What is the time limit for execution of conveyance deed?
A.12 In the absence of any local law, conveyance deed in favour of the Allottee shall be carried out by the promoter within three months from the date of issue of occupancy certificate.
Q.13 What is the time limit to take physical possession by allottees?
A.13 Allottees shall take physical possession of apartment, plot, or building within period of two months from occupancy certificate issued by authority.
Q.14 What steps needed in case of additions and alterations in layout plan?
A.14 Prior written consent of 2/3rd of allottees is required in case there is major addition and alteration in the layout plan, sanctioned plan and specifications of the buildings or the common areas within the project.
Q.15 What are the rights of allottees for transfer of assignment of project to third party?
A.15 Transfer of project to third party cannot take place without prior written consent from two-third allottees and along with prior written permission of authority.
Q.16 What is the period for which the promoter is liable for any structural defects etc. in the project / apartment?
A.16 The promoter shall be liable for 5 years from the date of handing over of possessionto the Allottee towards structural defect or any otherdefect as specified therein. The defect should be rectified within 30 days.
FAQ RELATED TO DUTIES OF ALLOTTEES
Q.17 In case Allottee fails to pay timely payment?
A.17 Allottees shall be liable to pay interest for a delayed period, at such rate as may be prescribed (rate of interest shall be equal for payment and refund).
Q.18 Is Allottee responsible to participate in formation of Association of Allottees?
A.18 Every Allottee shall participate in formation of Association of Allottees.
Q.19 Is Allottee responsible to participate in registration of conveyance deed?
A.19 Every Allottee shall participate towards registration of conveyance deed of apartment, plot, or building.
Q.20 Is Allottee responsible to take possession within two months of issue of occupancy certificate?
A.20 Every Allottee shall take physical possession of apartment, plot or building within two months of issue of occupancy certificate.
Q.21 If allottees do not comply with the order of authority?
A.21 Allottees shall be liable for penalty for the period of such default which may extend up to 5% of the plot, apartment or building cost.
Q.22 If allottees do not comply with the order of tribunal?
A.22 Allottees shall be punishable with imprisonment for a tenure which may extend up to 1 year or fine for every day during which such default continues, which may extend up to 10% of the plot, apartment or building cost.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018