The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, has brought about significant changes in the Indian real estate sector. One of the vital changes implemented by RERA is the mandatory registration of agreements to sell.
The registration of an agreement to sell is crucial as it helps the buyers protect their interests. Under RERA, developers are required to register the agreement to sell with the appropriate authority before advertising, marketing, or selling a project. This rule applies to all real estate projects, including residential and commercial properties.
The registration of the agreement to sell provides buyers with legal protection as the details of the transaction are recorded in the government`s database. Buyers can use this information to verify the authenticity of the developer, the project, and the property`s legal status. Registered agreements also ensure that the buyer`s investment is safe and secure.
It is important to note that the registration of an agreement to sell should be done within a specific time frame. As per the RERA guidelines, developers must register the agreement within three months from the date of the agreement`s signing. Failing to do so can result in a penalty or even cancellation of the project.
The registration process for an agreement to sell under RERA is simple. Developers are required to fill the application form and submit it along with the necessary documents. The registration fee for the agreement to sell varies from one state to another and depends on the property`s value.
The documents required for the registration of an agreement to sell include the title deed of the property, building plans, and approvals, the developer`s registration certificate, and power of attorney to sign on behalf of the developer. The registration process usually takes around 30 days, and the developer must provide a copy of the registered agreement to the buyer.
In conclusion, the registration of an agreement to sell under RERA is a critical step in ensuring the buyer`s rights and interests. It provides legal protection and ensures that the transaction is transparent. As a buyer, it is essential to verify if the agreement is registered before investing in any real estate project. Developers must also comply with the guidelines to avoid penalties and legal repercussions. RERA has been a game-changer in uplifting the real estate sector`s transparency and accountability, and registration of an agreement to sell is one of its significant components.