Registered sale agreement must to seek interest on home delays
The Maharashtra Real Estate RegulatoryAuthority (MahaRERA) has ruled that a registered sale agreement is necessary for a home buyer to seek interest on delay by the real estate developer in granting possession.
The ruling is significant as many home buyers, particularly investors, still continue to rely on letter of allotment even after making a significant payment to the developer and do not enter into an agreement to delay paying stamp duty, goods and service tax (GST) and other charges.
The verdict was delivered in a complaint filed by home buyers Niraj Sanghia and Ami Trivedi, who approached MahaRERA against developer Unique Shanti Realtors. The buyers had purchased a flat in the developer’s residential project in Mira Road through a letter of allotment dated July 16, 2013.
The complainants alleged that even after having paid substantial amount towards the price, the developer failed to execute and register the agreement for sale. They said the developer had promised to hand over possession by 2017, but failed to do so. The complainants prayed that the respondent be directed to register and execute the agreement for sale and pay them interest for the delay in handing over possession.