July 9, 2024: The Centre has submitted the model builder-buyer agreement to the Supreme Court (SC) for approval, following the court’s directive to establish core clauses for a standardised agreement applicable across all states. This agreement was developed in collaboration with state governments and the Confederation of Real Estate Developers’ Associations of India (CREDAI).
On July 8, 2024, the SC emphasised the need for uniformity in builder-buyer agreements, noting that property buyers were being exploited by builders nationwide. This observation was made during the hearing of a Public Interest Litigation (PIL) filed by BJP leader and advocate Ashwini Upadhyay. Senior Advocate Devashish Bharuka, serving as Amicus Curiae in the case, informed the Court that a final status report, along with the draft builder-buyer agreements, had been submitted. He also mentioned that suggestions from state governments had been received and incorporated.
“We need to see the amicus report and we will (see) objections of CREDAI. We have to take it on record and say that all States need to implement it… It needs uniformity,” the Court stated, before scheduling the next hearing for July 19. The Supreme Court issued a notice on the matter in October 2021. During earlier hearings, the Court was informed about the proposed clauses:
- Part ‘A’ Clauses: Uniform clauses for builder-buyer agreements across the country.
- Part ‘B’ Clauses: Clauses that states may insert, provided they do not contradict or dilute Part ‘A’ clauses and conform to the Real Estate (Regulation and Development) Act 2016.
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