• Instructions were passed to get the Agreement for Sale signed as per U.P. RERA Rules, 2018 and to ensure compliance of Section-13 of RERA Act.
• Collection of more than 10% amount of the unit price from the allottee without signing the Agreement for Sale is against the protection of the interests of the allottee and is a violation of the provisions of Section-13 of the RERA Act.
• During proceedings, the Hon’ble Bench issued directions to the promoter to immediately sign the BBA/ Agreement for Sale with the allottee on the format of the Model Agreement of the Rules 2018 and upload it on the complaint page.
• The Authority raised objection on signing an agreement of different format from the Model Agreement for Sale and sought clarification from the promoter.
Lucknow / Gautam Buddh Nagar: While hearing the complaints of allottees in the bench headed by Sanjay Bhoosreddy, Chairman, U.P. RERA, it was found that in many matters the promoters have collected more than 10% and up to 70-75% of the unit cost from the allottees without signing Agreement for Sale/ BBA with the allottees. Taking cognizance of such matters, the Hon’ble Chairman has passed order to the promoter to immediately sign the Model Agreement for Sale available on RERA portal with the allottee. Further it has been directed to provide a copy of that to the allottee and upload its copy on the complaint page on RERA portal. It is to be noted that if the promoter is collecting more than 10% of the unit price from the allottee without signing the Agreement for Sale then it is a violation of Section- 13 of the RERA Act and is against the protection of the interests of the allottees.
In such matters, U.P. RERA, using its powers provided in Section- 35 and 36 of RERA Act, 2016, has ordered the promoter to sign the Model Agreement for Sale format made available on RERA portal with the allottee so that compliance of the provisions of Section 13 of RERA Act can be ensured and the allottee can secure the Agreement for Sale for his unit. It is the duty of the promoter to provide the signed Agreement for Sale and right of an allottee after collecting the booking amount from the allottee, which should not be more than 10% of the unit cost, with respect to the unit. Any allottee/ home buyer should keep in mind that they should pay more than 10% of their unit to any promoter only after signing the Agreement for Sale.
Apart from this, it has been noted that in several matters the contract letter/ agreement for sale/ BBA signed between the promoter and the allottee is not in accordance with the format of the model agreement for sale of U.P. RERA Rules, 2018. In such matters, the Hon’ble Bench is seeking an explanation from the promoter about the reason of using a different format of agreement despite the model format of the agreement being available on the portal!
With the aim of creating awareness among the home buyers, U.P. RERA is regularly advising through its social media platforms that they should not pay more than 10% of the unit cost to the promoter without signing the agreement for sale and the agreement should be as per the model format approved by the state government, which has been made publicly available in the legal section of the RERA website.
Sanjay Bhoosreddy, Chairman, U.P. RERA said that the promoters should sign Agreement for Sale / BBA with allottee only on the format of Model Agreement for Sale approved by U.P. Government and should not demand more than 10% of the unit price without signing the agreement. On the other hand, allottees should also keep in mind that they should not pay more than 10% of the unit cost without signing the model agreement with the promoters.
He also said that the promoters should ensure compliance of the provisions of the RERA Act and allottees should not be misled in any way. RERA Act has been made to protect the interests of the allottees and we will ensure that the provisions and orders of RERA are being complied by the promoter in time.
