The responsibility of a builder does not end merely with handing over possession of a property to the buyer after receipt of the consideration amount. There has to be an absolute transfer of title of the property through execution of a Conveyance Deed between the necessary parties. The Assam Real Estate Appellate Tribunal(REAT) observed this today while dismissing two appeals filed against a judgement, delivered by the Real Estate Regulatory Authority(RERA), Assam.
In August, 2013, an allottee and a builder had entered into a registered Agreement for Sale for purchase and sale of an apartment in a project. On payment of the total consideration amount of Rs.18,00,000/-, the builder handed over the apartment to the allottee in November, 2015. The landowners, however, refused to hand over possession of the flat to the buyer, stating that they had taken over the responsibility to complete the construction of the project, as the Builder had been facing financial constraints. Both the Land Owners and the Builder had entered into a Deed of Agreement in January, 2016 under which it was agreed upon by both the parties that the Flats already sold by the Builder would be transferred by the Land Owners by executing Deeds, subject to receipt of the entire sale consideration amount. Due to some dispute between the landowners and the builder, the land owners refused to give possession of the apartment to the buyer.
In their order on a complaint filed by the buyer, the RERA observed that the Agreement for Sale between the respondent/complainant and the Builder was executed in August, 2013 and full payment was made prior to the execution of the subsequent Agreement between the Builder and the Land Owners in the year 2016. Therefore, any provision in the Agreement of January, 2016, which was in contravention to the Agreement for Sale of August, 2013, without necessary amendment or without having mutual consent of both parties who had signed the Agreement for Sale of August 2013, would be void. The RERA, Assam asked the Land Owners to vacate the Flat within 30 thirty days of the order.
Two appeals were filed in the Assam REAT against the order of the RERA. Dismissing the appeals, the Assam REAT stated that if for any reason, the transfer and alienation of the flat in favour of the buyer is impeded by any differences arising between the Land Owners and the Builder, it is for them to sort out such differences. But, under no circumstances the buyer can be deprived of peaceful and unencumbered possession as well as transfer of title of the Flat. The Tribunal asked the Builder and the Land Owners to comply with the orders within 4 weeks.
The order was passed by Mr. Justice (Retd.) Manojit Bhuyan, Chairperson and Shri Onkar Kedia, Member, Assam REAT. The full text of the order is available at reat.assam.gov.in, the official website of the Tribunal.
(PRESS RELEASE)
