Title Transfer by the Promoter under RERA: An Overview

Introduction

The Real Estate (Regulation and Development) Act, 2016 has brought about many changes in the Indian real estate sector. The blog post on transfer of title will have a deeper analysis on the rights and obligations of the parties involved. Transfer of title is the law that transfers the ownership from one person to another. As far as real estate is concerned, it deals with a transfer of ownership from the promoter or developer to the allottee or buyer.

Provision relating to Transfer of Title under RERA

Section 17 of RERA states that promoters are mandated to enter into a conveyance deed registered in the name of an allottee. The said deed is considered to transfer the undivided proportionate title in common areas to the association of allottees or the competent authority. In addition, the promoter shall hand over possession of the property and the common areas to the allottee and the association of allottees respectively, in terms of the period indicated in the sanctioned plan and the local laws.

Key issues for allottees

1. Completion of the conveyance deed in time: The promoters would ensure that the allottee completes the conveyance deed within said period. Any failure on this aspect can provide an opportunity to cure himself under RERA.

2. Title Documents: The allottee should himself verify all title documents such as the conveyance deed to ensure that the property is free from all encumbrance and its title transfer is legal.

3. Registration of Conveyance Deed: The conveyance deed is required to be registered so that it will act as a proof in court and can safeguard the rights of the allottee.

4. Possession and Common Areas: Allottees should insist upon getting possession of the property in time and access to the common areas under the terms of the agreement for sale and the provisions of RERA.

5. Dispute Resolution Mechanism: In case any dispute arises in respect of title, allottees may move before the Real Estate Regulatory Authority, State -wise.

Important Considerations for Promoters

1. Applicable Provisions of RERA : Promoters have to comply with the requirements of RERA, inter-alia by the proper execution of conveyance deed and handing over possession in due time .

2. Clear Title Documents :The promoters have to ensure that all the title documents pertaining to property are clear and free from encumbrances.

3. Registration of conveyance deed: For the transfer of legal ownership to the allottee by the completion of the registration within time to hand over the conveyance deed.

4. Dispute Resolution: The RERA authorities might be approached by the promoters for finding amicable solutions to avoid the complexity of legalities if any disputes are involved.

Challenges and Solutions

Some nightmares may strike the very process of title transfer where holding of title may get delayed due to required approvals and possessions and issues related to title clarity surfacing. These can be relaxed if promoters are involved with allottees along with:

•RERA Authorities: Seeking guidance and seeking assistance from RERA authorities would understand the specific requirements and resolve any disputes.

• Approach Eligible Legal Consultants: Solicitors with experience in such matters, so that one knows all formal legal formalities would be upheld, and their interests would be guarded.

• Documentation of all Resolutions: Record everything in the transactions, agreements, and correspondence. In case disputes or claims arise later on, these are always supported.

• Title Insurance: This title insurance can be acquired to avoid every kind of risk concerning the title. Knowing the Deed of Conveyance

Legal document formalizes the transfer of ownership from the promoter to the allottee.

•Property fact description: The description of the property should be proper, especially location, area, and characteristic features.

Transfer of title : The deed should mention that the title has been transferred from promoter to allottee.

Common area rights: The deed should mention the rights of allottee in relation to the common places like car park, garden, and the clubhouse.

Details of encumbrance: All encumbrances on the property should be disclosed.

Stamp duty and registration: The deed needs to be stamped and registered properly so that it can be enforced by the law.

Time schedule for Transfer of Title

These could vary from state to state under local laws and regulations. However, some general guidelines for them include:

•Completion Certificate: The prescribed authorities shall after the completion of the project, issue the Completion Certificate to the promoter.

•Conveyance Deed: The promotion along with the execution of a conveyance deed within a reasonable time from the receipt of the Completion Certificate

•Physical Possession: The said property shall be handed over by the promoter to the allottee. Common Issues and Remedies

Read blog: An Overview of Online RERA Registration in India

Functions of RERA Authorities

RERA authorities function critically to uphold the observance of the Act and safeguard the interest of the homebuyers. Their functions are –

Registration of Real Estate Projects: It registers the projects with the authority.

Monitoring Project Progress: It tracks the project and ensures completion time, among others.

Redressal of Grievances: This policy offers a platform for giving complaints by homebuyers and redressal of the same.

Impose Penalties: This takes actions against erring promoters and includes penalties and suspension of projects. Conclusion.

Conclusion

It mainly talks about the transfer of title from the promoter to the allottee. Thus, perhaps it would also be crucial to carry proper due diligence, updating and seeking legal advice at appropriate junctures.

The function of RERA authorities would, no doubt be that of compliance enforcing and, in addition, dispute settlement. The grievance redressal mechanisms instituted under RERA shall allow homebuyers to have their justice and secure their investment.

The promoter and the homebuyer will have to update themselves at all times about the latest RERA regulation and guidelines. It is going to be that crucial for all of them. By following provisions of the Act, it will shift in the direction of becoming more transparent, efficient, and consumer-friendly realty sector.