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Rights and Duties of a Buyer(i.e. Allotte) under RERA (Real Estate Regulation and Development Act, 2016) and model agreement for sale(Model AFS).

Introduction: This article discusses in detail the rights and duties of a buyer / allottee under RERA and model agreement for sale (Model AFS).

Rights of the Allottes/ Buyer/Investor

1. Total price payable by the allottee must be clearly specified in the MODEL AFS and shall be escalation free except for increase in statutory development charges or dues.

2. Total Price includes booking amount, indirect taxes like GST paid or payable by promoter up to the date of handing over the possession.

3. The promoter shall inform in writing to the allottee about the amount payable as and when due and allottee shall make the payment within the time allowed.

4. The promoter shall provide the details of taxes paid and demanded under the various Acts, rules or notification together with dates of their imposition.

5. Buyer is not liable for any new imposition or increase in statutory development charges after the expiry of scheduled date of completion of project including the period allowed for extension of registration.

6. After completion of project, the carpet area shall be recalculated and confirmed by the Promoter to the Authority and allotee before obtaining the occupancy certificate for the competent authority.

7. In case of reduction in final carpet area, the promoter shall refund the excess money to the allottee within 45 days with interest from the date such excess amount was paid by the allottee.

8. In case of increase in final carpet are which is not more than 3 % of carpet are of the flat, the promoter may demand additional payment from the allottee as per the payment plan.

9. All these above adjustment shall be made at the same rate per SQM as agreed in MODEL AFS.

10. The allottee shall exclusive ownership of the property.

11. The allottee shall have undivided proportionate share in Common Area.

12. The allottee has the right to visit the project site to assess the progress of the project and of his flat.

13. The promoter may cancel the allotment only in terms of the MODEL AFS.

14. The allottee may approach state RERA authority, if feel aggrieved by any wrongful action of the Promoter.

15. The allottee can avail remedy under RERA even if there is Arbitration clause in MODEL AFS.

16. The allottee shall be entitled to claim refund along with interest and compensation from the promoter, the promoter fails to comply with terms of MODEL AFS.

17. Interest shall be paid @ SBI MCLR + 2%.

18. In case of structural defect or any other defect in workman ship, quality or provision of service or in any other obligation of promoter as per MODEL AFS, if brought into the notice of Promoter within 5 years of handing over of the possession, the promoter shall rectify it within 30 days.

19. If the promoter fails to rectify the same within 30 days, the allottee is entitled to receive compensation.

20. The allottee /buyer/investor have right to withdraw from project and claim refund, interest and compensation if:

i. Failure by the promoter to hand over the physical possession; or

ii. The allottee makes payment on the basis of false incorrect statement contained in any notice or advertisement or prospectus or MODEL AFS

21. If the allottee does not intend to withdraw from the project, the Promoter shall pay the allottee monthly interest for every month of delay.

22. The allottee/buyer/investor to withdraw to claim compensation even if the incorrect statement by promoter was innocent or fraudulent.

23. The allottee have the right to claim compensation for loss caused by defective tile of land on which project is being developed or has been developed.

24. The above claim for compensation shall not be barred by any law of limitation.

25. The allottee have the right to transfer of title insurance and other insurance at the time of entering into MODEL AFS for the benefit of the allottee or association of allottee.

26. Any aggrieved person can file a complaint with adjudication authority under RERA against any promoter or real estate agent for contravention or violation of the provisions of this Act, Rule or Regulation made there under.

27. Class action suites are allowed under RERA.

28. The promoter shall execute the conveyance deed & hand over the physical possession the property along with other title documents within 3 months from date of issue of occupancy certificate.

29. The buyer has right to physical possession in accordance with MODEL AFS.

30. The buyer is entitled to have all necessary documents and plans, including that of common areas after taking over of the physical possession of the property from the buyer.

31. The buyer has right to lease certificate & document of insurance.

32. The promoter shall not make any structural alteration (other than minor ones) without prior written consent of at least 2/3rd Allottees other than promoters.

33. For the above purpose, the allottees, irrespective of the number of flats has been booked in his name, shall be considered as one allottee only.

34. The promoter shall not transfer or assign his majority right and liabilities in respect of areal estate project without prior written consent of at least 2/3rd Allottees other than promoters.

35. Any transfer or assignment as permitted above shall not be result in extension of time to complete the project.

36. In case of revocation of registration of project, the association of allottees shall have of first right of refusal for carrying out the remaining development works.

37. In case of default by the Promoter in achieving the milestones as per Model AFS, the allottee is entitled to:

i. Stop making payment further payment to Promoter as demanded by the Promoter. The promoter shall correct the situation by completing the construction milestones and only thereafter the allottee is required to next payment without interest; or

ii. Terminate the agreement, in which case the Promoter shall have to refund the full amount paid by the allottee under any head whatsoever along with interest within 45 days.

38. If the allottee does not intend to withdraw from the project, the Promoter shall pay the allottee monthly interest for every month of delay.

Responsibilities / Duties of Allottees or Investor

1. Every allottee shall make the necessary payments as when due within specified time limits as per AFS.

2. Every allottee shall pay proper share of registration charges, municipal taxes, water and electricity charges, maintenance charges, ground charges and any other charges as and when due.

3. Every allottee shall be liable to pay interest for any delay in making payments as above.

4. Every allottee shall participate in formation of an association of allottees.

5. Every allottee shall take physical possession of the property within 2 months of the issue of occupancy certificate.

6. Where the allottee fails to take possession of the property within 2 months of the issue of occupancy certificate, he shall be liable to pay maintenance charges.

7. Every allottee shall participate in registration of conveyance deed of the property.

8. If any allottes fails to comply with, or contravenes any order, decision or direction of the authority, he shall be liable to pay penalty for the period default continues & which may extend to 5% of property cost.

9. If any allottes fails to comply with, or contravenes any order, decision or direction of the Appellate Tribunal, he shall be liable to:

i. Imprisonment for a term upto 1 year; and or with both

ii. pay penalty for the period default continues & which may extend to 10% of property cost.

10. The court may compound the offence on paying 10% of property cost by the allottee.

11. The allottes shall comply with orders of Appellate Tribunal witnin period of not more than 30 days of compounding orders of court.

12. On such payment and compliance of court order, the allottee who is in custody shall set at liberty and no proceeding shall be instituted or continued against such person.

13. The acceptance of such money foe compounding shall be deemed to be an acquittal order.

The author is a practising CA and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.



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  1. Anant Aggarwal says:

    Thanks for clarification and summing up the points discussed in Rera. Just wanted to check is there any limit on the interest charged on the allottees in Noida mentioned in point 3 of ‘roles and responsibilities of allttees’. Thanks for.your help

  2. Satya Pal Soni says:

    Thanks for the guidance. I have a question.The developers of Affordable housing project are charging VAT on the installments payable by the allotes.(construction linked projects) Is it relevant.?.

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July 2024