A sales agreement is an agreement by which the seller promises to transfer future ownership of the property to the buyer under certain conditions. In addition, Section 13 provides for mandatory registration of the sales agreement by prohibiting developers from accepting more than 10% of the cost of the property without executing and registering the sales agreement. However, it is not specified under which law – The Registration Act, 1908, The Transfer of Property Act, 1882 or The Real Estate (Regulation & Development) Act, 2016 – registration must be made. Applying the provisions of section 88 of the RERA Act 2016, we can see, by analyzing the provisions of the two Decrees, that Sec 17 (2) (v) of the Registration Act 1908 denies the RERA Act 2016. In accordance with section 89 of the RERA Act 2016, the provisions of the Registration Act 1908 are therefore not taken into account for the purposes of registering the sales agreement. . But if we analyze Sec 13(1) of the RERA Act 2016, which states that a sale agreement must be registered in accordance with applicable law, it means that a sales agreement will be registered in accordance with the provisions of the Registration Act 1908. The sale is made. – In the case of a fixed physical patrimony worth one hundred rupees and more or in the case of inversion or other immaterial thing, such a transfer may only be made by a registered instrument.
In the case of physically immobile property with a value of less than one hundred rupees, this transfer may be made either by a registered instrument or by delivery of the goods. The delivery of physical immobiles is carried out when the seller takes possession of the buyer or the person he assigns. If the sales contract is unfounded, another question arises as to whether the buyer can remedy it in the event of a breach of the sales agreement. This received a response under Article 18 of the RERA Act, which states that the developer must compensate the buyer if he was unable to complete the project and hand over the property within the deadlines set in the sale or purchase agreement. If the developer does not do so, they can file a complaint with the RERA Authority3 and claim compensation. If it is breached by the Authority`s order, it may appeal to the Real Estate Regulatory Appellate Tribunal, in accordance with section 44 of the RERA Act 2016. This question arises because the registration of documents is usually carried out in order to guarantee the buyer a clear right and ownership over the property. A sales agreement as such does not clearly determine the ownership of the property. In Durgawati Devi v Union of India2, the Supreme Court ruled that the performance of the contract of sale does not transfer ownership/title to the property and ownership/ownership is only transferred by a transfer instrument.
The Real Estate (Regulation & Development) Act, 2016 (Act) was notified in its entirety on 1 May 2017. Section 3 of the Act provides for the registration of a real estate project by the developer if the developer intends to promote, market, reserve or sell real estate in the project in question. Registration is also required for ongoing projects for which the developer has not received graduation certificates. Therefore, the law applies not only to future projects, but also to ongoing projects for which construction began before May 1, 2017. For some ongoing projects, an ATS covering the rights, obligations and obligations of the parties would have been clearly executed and the buyers would have made partial payments for the entire counterparty. The amount of the payment depends on the payment plan chosen by the Allotte, i.e. the construction link or the fixed period. In this context, Article 13 of the Act now provides for the mandatory registration of the ATS.
To understand the conflict between RERA and Registration Act, it is important to understand the difference between the sales agreement and a deed of sale.. . .