Draft rules call for timely delivery of service from real estate developers -Governance Now

Draft rules call for timely delivery of service from real estate developers

Government seeks public opinion on draft rules for Agreement for Sale by August 17

GN Bureau | August 2, 2016

#real estate #public opinion #draft rules #ministry of housing #union territories

The ministry of housing and poverty alleviation has come out with draft rules for agreement plans between the buyer and the seller in real estate projects for union territories without a legislature. As such, the draft rules would be applicable in five UTs – Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, and Lakshadweep – except Delhi and Puducherry.

Giving key importance to time, the draft norms specify that the promoter would have to abide by the time schedule for completing the project and handing over the apartment/plot to the allottee. Similarly, the allottee too would have to abide by timely payments of the installment and other dues.

The promoter would also have to agree with timely delivery of possession of the apartment/plot to the allottee unless there is delay or failure due to war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.

The rules also define the tagline, ‘ready to move in possession’, used often by promoters to attract customers, by stating that the term should mean that the apartment is in a habitable condition which is complete in all respects.

In case of default by the promoter, the allottee is entitled to stop making further payments or terminate the agreement, as per the draft rules. But if the allottee is found to be at fault, then interest would have to be paid to the promoter on the unpaid amount or the allotment of the apartment/plot could be cancelled by the promoter.

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