Promoter has the responsibility to sign a sales agreement using the correct form: REAT Assam

The promoter must draught and enter into an Agreement for Sale with an allottee exactly in accordance with the form provided in Annexure “A” of the Assam Real Estate (Regulation and Development) Rules, 2017, according to the Assam Real Estate Appellate Tribunal (REAT).

Reat was making a decision regarding an appeal brought by a promoter located in Guwahati against a decision made by the Real Estate Regulatory Authority (RERA), Assam.

In this instance, a couple and the Promoter had signed a registered Agreement for Sale on October 31, 2017, in order for the couple to buy a residential apartment in an RCC building in Chatribari, Guwahati. The allocators filed several complaints against the Promoter with RERA, Assam.

The final order issued on 07.12.2022 had up to 29 directives.
RERA for the Builder’s proper compliance. One of the instructions was to find the builder Rs. 50,000 for failing to execute the Sale Agreement in the format specified. To challenge this ruling, the builder appealed to the Assam REAT.

In the order it issued, the Tribunal rejected the builder’s argument that even though the Agreement for Sale did not follow the guidelines, there was no malice intended, and that both parties had entered into the Agreement knowing what they were getting into. The Tribunal further rejected the argument that any problems with the Agreement may always be fixed when the parties sign the conveyance deed.

The Tribunal explained why it made the decision it did by citing Subsection (2) of Section 13 of Chapter III of the Real Estate (Regulation and Development Act), under the heading “FUNCTIONS AND DUTIES OF PROMOTER,” which stipulates that the Agreement for Sale must follow any applicable regulations.

The form in Annexure ‘A’ is consequently prescribed by Sub-rule (1) of Rule 9 of the Assam Real Estate (Regulation and Development) Rules, 2017.

The Promoter must draught and enter into the Agreement for Sale with an allottee strictly in accordance with the form provided in Annexure “A,” according to a fair reading of both requirements.
The order was approved by Justice (Retd.) Manojit Bhuyan, Chairperson, and Onkar Kedia, Member, Assam REAT.