Rera Agreement of Sale

  • Post author:
  • Post category:Uncategorized
Share With Your Friends

The Real Estate (Regulation and Development) Act of 2016, commonly known as RERA, was enacted to revolutionize the real estate industry in India. Among its many provisions is the ‘Agreement of Sale’ or the ‘Sale Agreement,’ which is a crucial document for both the buyer and the seller. In this article, we will explore the key features and importance of the RERA Agreement of Sale.

What is RERA Agreement of Sale?

The RERA Agreement of Sale is a legal document that outlines the terms and conditions of the sale of a property between the buyer and the seller. It is one of the most important documents that both parties need to sign before the sale is finalized. The agreement of sale includes the price of the property, mode of payment, completion date, possession date and other important details such as parking spaces, specifications of the property, and amenities.

Importance of the RERA Agreement of Sale

The RERA Agreement of Sale is very important for both the buyer and the seller, and the following points highlight its importance:

1. Clarity: The RERA Agreement of Sale ensures clarity of the terms and conditions of the sale. The document outlines all the important details and ensures that both the buyer and the seller are aware of the obligations and responsibilities that come with the sale.

2. Legal protection: The RERA Agreement of Sale provides legal protection to both the buyer and the seller. It ensures that both parties are protected if the other party fails to meet the obligations stated in the agreement.

3. Avoids disputes: The RERA Agreement of Sale is designed to avoid disputes between the buyer and the seller during and after the sale. It ensures that both parties are aware of their responsibilities, obligations, and timelines related to the sale.

4. Transparency: The RERA Agreement of Sale promotes transparency in the real estate industry. It ensures that buyers are well-informed about the property they are purchasing and the terms and conditions of the sale.

Features of the RERA Agreement of Sale

The following are the key features of the RERA Agreement of Sale:

1. The agreement must be in writing, in the same language as agreed upon by both parties.

2. The agreement must include all the terms and conditions related to the sale of the property.

3. The agreement must mention the carpet area of the property, which is the area within the walls of the apartment.

4. The agreement must clearly mention the date of possession and the date of completion of the project.

5. The agreement must include the mode of payment, including the amount and frequency of payment.

6. The agreement must mention the penalties or compensation in case of delay in possession or completion of the project.

Conclusion

The RERA Agreement of Sale is a crucial document for both the buyer and the seller. It ensures transparency, legal protection, clarity, and avoids disputes related to the sale. It is advisable to hire a legal expert or a professional real estate agent to create and review the RERA Agreement of Sale. By doing so, both the buyer and the seller can ensure that their interests are protected and the sale proceeds smoothly.