Builders in India must mention the “non-negotiable” clauses at the time of providing agreement to sale, the Maharashtra Real Estate Regulatory Authority (RERA) has ruled. The state authority issued a notification in this regard on December 13, 2022.
According to the MaraRERA, these non-negotiable clauses include clauses on structural defects, occupancy certificate, society formation and registration of the sale deed in a time-bound manner.
For the uninitiated, a sale agreement is signed after a buyer pays some advances towards future home purchase. The state regulatory authority has prescribed a modal from which developers can replicate and upload on the RERA website. However, according to the authority, developers often fail to adhere to the guidelines on agreement to sale performa.
While stating that the sale agreement can be modified depending on the unique features of housing projects, not to mention this crucial information in the agreement is non-negotiable. “The agreements are not in line with the RERA model form. Key clauses like liability of builders for 5 years for structural defects, obtaining OC, society formation, and executing registered conveyance deeds in favour of society in a time-bound manner are non-negotiable clauses,” said Anil Dsouza, secretary Bar Association, Maha RERA.
Modification in non-negotiable clauses defeats the very objective of the modal agreement to sale, the authority added.
“The non-negotiable clauses in agreement for sale will fulfill the objective of maintaining transparency and remove discrepancies if any. These clauses provide security to buyers and keep their part strong in case they approach the authority at a time of delayed possession or any other related issues with the builder,” RERA officials said in a statement.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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