The registration of the sales contract has been made mandatory in the interest of the buyer. Since the agreement is signed before the registrar, it ensures that the buyer is not obliged to sign a specific clause. In addition, the registration of the document makes it possible to submit it to a court as proof of a contract, thus preventing the promoter from denying its existence and thus holding it responsible. Registration also brings revenue to the government in the form of stamp duty. But if we analyze Section 13(1) of the RERA Act of 2016, which states that a sales contract must be registered under applicable law, it means that a sales contract is registered in accordance with the provisions of the Registration Act 1908. When analysing § 13 paragraph 1 of the RERA Act, it becomes very clear that the contract of sale must be registered, which is not the case in the Registration Act. After further analysis, it should be noted that Article 88 of the 2016 RERA Act states that the law further applies and does not deviate from a currently applicable law. This means that the RERA Act of 2016 must be read together with the Registration Act of 1908. Applying the provisions of section 88 of the 2016 RERA Act on the provisions of the Registration Act 1908, we can affirm that Section 17(2)(v) of the Registration Act 1908 supersedes the RERA Act 2016. Section 49 of the Registration Act 1908 stipulates that documents that are to be registered either under section 17 of the Registration Act 1908 or under the Transfer of Ownership Act 1882 shall not be registered unless they are registered: with notification of the format of the purchase contract, it is mandatory for the promoter, to follow the same format of the purchase contract / the content of the purchase contract without diluting the provisions of the RERA law of 2016. Rera Rules of Karnataka 2017. From the above definitions, it becomes quite clear that a sales contract contains a promise to transfer ownership in the future if certain conditions are met.
Thus, this agreement itself does not create any right or interest in the property for the proposed buyer. In the event of default by one of the contracting parties, i.e. the seller to sell or take possession of the property to the buyer, the buyer receives a right to some performance, under the provisions of the Specific Reparations Act 1963, a similar right is also available to the seller under the contract. for the search for a specific service of the buyer. A contract of sale is an instrument in which the seller promises to transfer ownership to a buyer if certain conditions are met, but it does not establish ownership of the property by the buyer. However, the RERA Act of 2016 provides for a non-obstence clause in Section 89 and becomes applicable to the Registration Act of 1908 under the same RERA. On the other hand, it also raises some other questions, namely: whether a contract of sale creates a right, title or interest in the property? The agreement could include a clause that allows the builder to change the square footage of the apartment. If it has increased, it charges an additional fee for it. “What changes is not the carpet area, but the super zone,” says Anuj Sood, head of Sood Properties based in Noida. “You may end up paying 10 to 15 percent more, while the benefit to you in terms of additional range may be marginal or zero.” 4A. An agreement on the sale as such does not provide for a clear claim to the property.
The Supreme Court ruled in Durgawati Devi v. Union of India2 that the execution of the purchase contract does not transfer ownership/ownership of the property and that ownership/title is transferred only by deed of transfer. Now let us understand various important clauses of the sales contract as notified by Karnataka RERA – (a) in accordance with the terms of the sales contract or, where applicable, correctly concluded on the date specified therein; or 2nd Decree of 4 October 2019 filed under SLP( C) 3479/2016 In order to understand the dispute between RERA and the Registration Act, it is important to know the difference between the agreement on the sale and the deed of sale. This article gives a brief idea of an agreement to sell and sell a deed. In addition, the provisions that apply to the sales agreement under the RERA Act and the Registration Act are explained and the conflict between the two Acts is resolved. When we analyze the provision, we can understand that the document to which it refers is a contract of sale. In addition, it is also stated that the contract of sale as such falls within the category of Article 17(2) of the Law on registration as a document which cannot be compulsorily registered. It should be concluded that the RERA Act of 2016 takes precedence over the Registration Act for the purposes of the sales contract. Thanks to the RERA law of 2016, the sales contract can be registered and enforced against unscrupulous activities in court. However, there are no court decisions to prove that the RERA Act of 2016 should take precedence over the Registration Act of 1908, but registering a contract of sale is a smart decision and is supported by various laws such as the RERA Act, the Indian Contracts Act and the Specific Remedies Act.
Explanation: A document that claims or is used to conclude a contract for the sale of real estate is not considered to be registered or never required simply because that document contains a recital for the payment of real money or all or part of the purchase price. The manufacturer-buyer agreement is an extremely important document because it is the legal contract between the manufacturer and the buyer. If the developer does not keep his word in any way, this is the most important legal document that the buyer must use. Many manufacturer-buyer agreements are strongly tilted in favor of the manufacturer. We discuss some of the general provisions and their impact on you. The author is of the opinion that even if the authorities want to enforce the mandatory registration of the contract between the buyer of the apartment and the builder, the necessary instructions can be given by the authorities in their order while granting the complaint. Indeed, the exemption from default interest may be subject to the registration of a formal sales agreement between the parties with an additional instruction that the manufacturer would be liable to a penalty if he delayed the registration of the contract. However, it would be ridiculous to mock justice if a home buyer were denied redress only because of such a formality on the threshold itself, thus favouring the builder for his own omissions. In addition, Article 13 provides for the mandatory registration of the sales contract by prohibiting developers from accepting more than 10% of the cost of ownership without executing and registering the sales contract. However, it does not specify under which law – the Registration Act 1908, the Transfer of Ownership Act 1882 or the Real Estate (Regulation and Development) Act 2016 – registration must be carried out. Overall, while the law may tend to protect the interests of buyers, it has only limited power to decide in favor of the buyer in the event of ambiguity arising from unregistered sales contracts. With an increase in fraud in the real estate market, all buyers are advised to pay a slightly higher fee and register the purchase contract instead of saving on registration fees just to lose the entire prepayment due to fraud.
There was a reason to insert this provision, and the reason for it is that there were certain documents that did not make a major difference in terms of right, title or interest in real estate, whether it was registered or not. .