Execution of sale agreement must before demanding over 10% of unit cost: UP-RERA, ET RealEstate
NEW DELHI: Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued an advisory for the promoters and home buyers for execution of a registered agreement for sale between them before the promoter can demand more than 10 percent of the unit cost or before the allottee can pay any amount beyond 10 percent of the cost of the unit.
Sanjay Bhoosreddy, chairman, UP-RERA said that the advisory is intended to ensure accountability on part of the promoters and transparency in their business relations.
According to the statutory provisions under section-13 of the RERA:
• No promoter can take advance payment of more than 10 percent of the cost of the apartment, plot or building from any person without first executing a registered agreement for sale with him.
• The agreement must cover the particulars of development of the project including the construction of building and apartments along with specifications and particulars of internal and external development works.
• The agreement shall provide the dates and the manner of the payments toward the cost unit, date on which the possession shall be handed over to the allottee.
• The agreement shall specify the rate of interest payable by the promoter and the allottee to each other in case of default by either of them.
Bhoosreddy further said that there have been instances where the promoters have taken most of the payments from the gullible allottees without execution of the registered agreement for sale.