The Assam Real Estate Appellate Tribunal (AREAT) has emphasized that a builder's responsibility extends beyond the physical handover of a property to the buyer. In a recent ruling, the tribunal emphasized the importance of a complete transfer of property ownership through the execution of a Conveyance Deed involving all relevant parties. The decision reaffirms the significance of legal documentation, contractual agreements, and transparency in real estate transactions, providing protection to buyers and promoting fair practices within the industry.
The Assam Real Estate Appellate Tribunal (AREAT) recently emphasized that the duty of a builder extends beyond the mere act of handing over a property to the buyer upon receiving the agreed-upon payment. According to the tribunal, there must be a complete transfer of property ownership through the execution of a Conveyance Deed involving all relevant parties.
This ruling was made by Justice (Retd.) Manojit Bhuyan, Chairperson, and Onkar Kedia, Member of the Assam REAT, as they dismissed two appeals filed against a judgment issued by the Real Estate Regulatory Authority (RERA) in Assam.
The dispute originated in August 2013 when an allottee and a builder entered into a registered Agreement for Sale, outlining the purchase and sale of an apartment within a project. In November 2015, after the allottee had made the full payment of Rs. 18,00,000/-, the builder handed over possession of the apartment to the buyer.
However, complications arose when the landowners refused to relinquish possession of the flat to the buyer, claiming that they had assumed responsibility for completing the project's construction due to the builder's financial constraints.
Subsequently, both the landowners and the builder entered into a Deed of Agreement in January 2016. The agreement stipulated that the landowners would transfer the flats that had already been sold by the builder upon the execution of Deeds, provided they received the entire sale consideration amount.
Unfortunately, due to a dispute between the landowners and the builder, the former party refused to hand over possession of the apartment to the buyer. This led to the appeals being filed with the Assam REAT.
The Assam REAT, in its dismissal of the appeals, upheld the principle that a builder's responsibility transcends the act of merely handing over possession to the buyer. It stressed the necessity of a complete transfer of property title through the execution of a Conveyance Deed involving all relevant parties. By making this observation, the tribunal reaffirmed the importance of legal documentation in ensuring a clear and unambiguous transfer of property ownership.
This ruling serves as a significant precedent, establishing a framework for future disputes within the real estate sector in Assam. It underscores the need for builders to fulfil their obligations fully and legally, going beyond the physical delivery of a property. The judgment also highlights the significance of adherence to contractual agreements and the execution of appropriate legal documents to protect the rights and interests of all parties involved in real estate transactions.
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