Disputes Between Builders & Homebuyers To Reduce
Disputes between homebuyers and builders will be reduced by the new initiative taken up by MahaRERA believe experts.
By Varun Singh
There are many reasons because of which disputes between homebuyers and builders come up and they approach MahaRERA for getting them resolved.
According to MahaRERA itself, during the course of the hearing of the complaints, the various issues of an agreement are arising by way of disputes.
To tackle this, MahaRERA has formed a Committee for giving recommendations on two issues; Model Agreement for Commercial/Residential Units/Plots and Draft for Allotment letter.
Real Estate (Regulation and Development) Act 2016 was enacted to bring greater professionalism, accountability, and competency in
real estate sector.
In accordance with the provisions of Section 13 of RERA, the promoters shall not accept a sum of more than ten percent of the cost of
apartment without entering into an agreement for sale.
MahaRERA in its circular has stated, it is observed that during the course of the hearing of the complaints the various issues of an agreement are arising by way of dispute.
Therefore, MahaRERA stated that it is necessary to consider modifying the Agreement for Sale.
Thus a committee has been constituted to advise and to give recommendations vis-a-vis suggestion in the Draft Agreement for Sale and Draft for Allotment letter.
The committee includes the following members:
|Sr. No||Name & Designation||Member|
|1||Dr. Vijay Satbir Singh (Member/|
|Chairman of the Committee|
|8||Dr. Archana Sabnis (MGP)||Member|
|9||Mohun Rao (Legal Advisor|
|10||Nalini Sathe, (Legal|
|11||Vasant Wani (Administrative|
|12||Any other Member as co-opted by|
Chairman, from time to time
Timelines and scope of work of the committee shall be in consultation with MahaRERA. It is expected that the committee would submit its report in 30 days.
Experts have hailed the move saying that this will reduce disputes between builders and homebuyers.
“It is an excellent move to amend the draft of allotment letters and agreements. The authority is looking to amend the Draft Allotment and Agreement letters. Many developers prepare additional “Booking forms” and “terms and Conditions of Allotment” to impose additional terms not provided in the Authority prescribed provisions. The same must be curtailed while issuing new model drafts and instructions. Additionally, to reduce several Section 13 violations already committed by developers, it has been observed in most cases that large monies are paid by purchasers and developers do not comply with Section 13, allotment letters are issued but the Agreements are not registered. The Authority must consider having developers make such declarations online, and/or rectify the same in a time-bound manner, to substantially reduce Section 13 violations,” said Prakkash Rohira – Advocate, Bombay High Court.
“It is a great proactive step taken by MahaRERA. Based on their observations and experts’ advice; now they can modify the Model Form of Agreement so that in futures fewer issues related to Agreement will arise between the developers and property buyers,” said Sunil Kewalramani, Advocate, Bombay High Court.