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The Assam Real Estate Appellate Tribunal (REAT) has ruled that promoters are obligated to adhere to the prescribed format for the Agreement for Sale, as stated in the Assam Real Estate (Regulation and Development) Rules, 2017. The ruling came in response to an appeal filed by a Guwahati-based promoter who was penalized for not signing the Sale Agreement as per the prescribed format. The Tribunal rejected the builder's arguments and emphasized the promoter's responsibility to strictly follow the prescribed form. The decision highlights the importance of standardized procedures and transparency in the real estate sector to protect buyer interests.
The Assam Real Estate Appellate Tribunal (REAT) has emphasized the responsibility of promoters in adhering to the prescribed format for the Agreement for Sale. In a recent case, a promoter based in Guwahati filed an appeal against an order issued by the Real Estate Regulatory Authority (RERA) of Assam. The appeal was heard by the Assam REAT and the tribunal delivered its ruling on the matter.
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The case involved a couple who had entered into a registered Agreement for Sale with the promoter on October 31, 2017, for the purchase of a residential flat in an RCC building located in Chatribari, Guwahati. Unsatisfied with the actions of the promoter, the couple approached the RERA, Assam, with several grievances. In its final order on December 7, 2022, the RERA issued 29 directions to the builder, which included a penalty of Rs. 50,000 for not complying with the prescribed format for the Sale Agreement. Aggrieved by this penalty, the builder filed an appeal with the Assam REAT.
In its ruling, the Tribunal dismissed the builder's argument that there was no malicious intent in deviating from the prescribed format of the Agreement for Sale and that both parties had willingly entered into the agreement. The Tribunal also rejected the builder's contention that any deficiencies in the Agreement could be rectified during the execution of the Conveyance Deed.
To support its decision, the Tribunal referred to Sub-section (2) of Section 13 of Chapter III of the Real Estate (Regulation and Development) Act, 2016, which outlines the "Functions and Duties of Promoter." According to this provision, the Agreement for Sale must conform to the prescribed form. Sub-rule (1) of Rule 9 of the Assam Real Estate (Regulation and Development) Rules, 2017 further specifies the form in Annexure 'A.' By examining these provisions together, the Tribunal concluded that it is the duty of the promoter to prepare and enter into the Agreement for Sale with the allottee strictly in accordance with the form provided in Annexure 'A.'
The order was issued by Justice (Retd.) Manojit Bhuyan, Chairperson, and Onkar Kedia, Member, of the Assam REAT. The ruling underscores the importance of promoters complying with the prescribed format for the Agreement for Sale, as outlined by the relevant legislation and regulations. It emphasizes the need for transparency and standardized procedures in the real estate sector to protect the interests of buyers and promote a fair and equitable environment for all parties involved in real estate transactions.
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