Information on rights and responsibilities of builders, promoters and buyers

- 'Under the Gujarat Ownership Flats Act-1973

- Lokabhimukha Guidance - - H.S. Patel IAS (Retd.)

- Flat/apartment holders required to form association for maintenance and management of collective space

Not long ago, the provisions of the Real Estate Regulation Act-2016 (RERA) were drawn up in detail, covering the entire construction sector, as well as the duties and responsibilities of buyers and sellers of land/property, through a column of public guidance. Correspondingly, it is also necessary for the public to know what are the responsibilities and rights of those who build and buy flats for a specific purpose. As the prevalence of multi-storied flats has increased at present, the responsibilities of the developer/builder of flats as well as the purchasers of the flats are described through the Flat Ownership Act.

When a promoter/builder of a flat decides to sell his/her flats, it is to deal transparently with the buyers of flats, such as details of construction of flats, necessary documents, fixed price, installments to be paid in installments, payment terms and conditions, etc. In addition, complete information and verification of the location, condition, form, title of the land on which the flats are constructed or to be constructed by the promoter and obtain a title certificate from an expert lawyer who has practiced for more than three years as prescribed in the rules of this Act. It is necessary and in that land purchased by the promoter in that land, if there is any right, interest, claim of any other person on the land including any encumbrance, then the builder must disclose the details thereof. Apart from that, whether the land on which the flats are constructed or to be constructed by the builder has been given non-cultivation permission by the Collector and whether the construction plans have been approved by the competent authority and the details thereof are required to be presented to the flat buyer for checking. Further, it is the responsibility of the promoter to ensure that the flats constructed have obtained completion certificate (CC) and occupancy certificate (OC) from the concerned authority and the possession of the flat should not be handed over until the occupancy certificate is obtained. . In particular, the builder needs to tell the details of the materials to be used in the construction (Specifications), facility of lift, fixtures, appliances etc. in order for the construction to take place as per the design of the building in the concerned building. If the construction of the flat is done by a contractor by the promoter, then the details of the agreement entered into regarding the same are also required to be disclosed. The time when the construction of the flat/building will be completed and the possession of the flat should be mentioned in writing and it is the responsibility of the builder to hand over the possession of the flat within the stipulated time and when the possession of the flat is handed over to form a resident association for the maintenance of the entire building and the conditions thereof. Should be communicated to the buyer in writing. The terms of registration should be specified in the Agreement to Sale or the sale document, and if the possession of the flat is not handed over within the prescribed time limit even after receiving the occupancy certificate, the builder has to bear the municipal tax and other taxes of that period. After the transfer and possession of the flat, it is the responsibility of the flat buyer to pay all types of taxes and the deposit taken for the maintenance of the flat or for other purposes should be opened in a separate bank account in the name of the society or association. So the buyers of flats need to take care as above.

Now the responsibility of the flat buyers is that if there is any defect in the construction of the flat according to the plan, the builder must remove the defect within one year without taking any kind of charge. In this way, if the possession of the flat is not handed over within the stipulated time limit and there are no uncontrollable circumstances, the promoter is liable to return the amount to the flat taker with simple interest after another period of three months. Once the agreement to sell the flat is entered into, no encumbrance or mortgage can arise on the concerned flat without the consent of the lessee, after full payment of the consideration amount from the flat lessee, the promoter shall hand over the possession of the flat to the lessee and register the transfer of right and interest in that flat. Provision is made in this Act to provide any documents in this regard to the flat buyer and in whose name the flat is booked and allotted and the builder, if the flat is sold to another by the promoter, when the money is paid. Civil and criminal action may be taken against him if the sale is made.

Once the flat is transferred and occupied, all taxes and charges are the responsibility of the flat tenant as per the terms of the agreement and in case of violation, the flat tenant is found guilty and is liable to a fine and punishment up to two thousand rupees. Thus, the provisions of the Flat Ownership Act-1973 are laws that determine the responsibilities and rights of flatholders and builders. Now that the Real Estate Regulation Act-2016 (RERA) has come into force, most of the provisions of this Act have been incorporated, but the provisions of this Act are specifically applicable to flat houses.