If you are planning to buy or sell a property, it is essential to understand the legal aspects of the transaction. One of the critical documents required while selling a property is the Sale Agreement. The Real Estate (Regulation and Development) Act 2016 (RERA) has made it mandatory for developers to register their projects and provide a standardized sale agreement format to protect the interests of buyers. In this article, we will take a closer look at the sale agreement format under RERA.
Firstly, it is essential to understand what RERA is and its significance in the real estate sector. RERA is a law enacted to regulate and promote real estate transactions and to protect the interests of buyers and investors. It has laid down guidelines to ensure transparency and accountability in the real estate sector, and one of its key provisions is the requirement for a mandatory sale agreement.
The sale agreement under RERA is a standardized format that includes a set of terms and conditions that must be adhered to by both the buyer and seller. Some of the essential clauses included in the sale agreement format under RERA are:
1. Property Details: The sale agreement should include a clear description of the property being sold, including the address, location, and size of the property.
2. Payment Details: The sale agreement should specify the total cost of the property and the payment schedule, including the amount of the down payment, mode of payment, and the date of payment.
3. Possession Date: The sale agreement should also mention the possession date. Under RERA, developers are liable to pay the buyer interest in case of delay in handing over possession of the property.
4. Amenities and Facilities: The sale agreement should also include details of the amenities and facilities being provided with the property, such as parking, gym, swimming pool, playground, etc.
5. Dispute Resolution: RERA mandates that every sale agreement must provide for a mechanism for dispute resolution. The sale agreement must include the name of the arbitrator who will resolve the dispute and the process of arbitration.
6. Warranty: The sale agreement must mention any warranty provided by the developer, such as a structural warranty or a warranty for fittings and fixtures.
In conclusion, the sale agreement format under RERA provides a standardized format that ensures that both buyers and sellers are protected, and the transaction is transparent and fair. It is essential to carefully read and understand the terms and conditions mentioned in the sale agreement before signing it to avoid any future disputes. If you are planning to buy or sell a property, it is recommended to consult a legal expert to ensure that the sale agreement is in compliance with RERA guidelines.