• Property registration after RERA expired

I booked a flat with a builder on 21st July 2024. I gave a cheque of 5 lakhs as initial token amount.

On 30th July 2024 the RERA expired for the project.

I make another payments of total 70 lakhs + 13 lakhs for stamp duty via multiple cheque until 20th August 2024 to the builder. In August end we were going to go for registration. On the day of registration the builder tells me that there is a minor technical issue. Our RERA has expired hence the registrar office is saying we cannot do any registration. 

The builder is not planning to apply for RERA extension as he is going to apply for OC soon and does not want to waste money with RERA extension. Almost all the flats in the building are already registered and only few (maybe 3) are cases similar to mine.

The builder told me that since I made the payment of 5 lakhs on 21st July 2024 before RERA expired and has already given me an allotment letter of date 21st July 2024, he is going to request the registrar office that we should be allowed to register as our deal was done before RERA expired.

My question is :
1. Is the builder correct when he says that we can apply for registration because we had made initial deal before RERA expiry based on initial 5 lakhs cheque?
2. I heard that by law you are allowed to go for registration within 4 months of agreement. So does it mean that when I make a deal on 21st July 2024, I should be allowed to go for registration 4 months from that day even if RERA has expired by then?
3. When I asked the question number 2 to builder he mentioned that in order for us to be eligible for 4 months window we should have payed stamp duty before RERA expiry only then its allowed for us. Is this true?
4. Do you need to pay stamp duty before RERA expiry? Can stamp duty be paid after RERA expiry? Are those two any how related?
5. Builder says if he simply applies for OC then just based on the OC application he can have our flat registration done? Is it true? Does just an OC application is sufficient or does the OC have to be approved and only then registration can be done on RERA expired project?
5. What are my option in this case?

Thanks in advance.
Asked 12 days ago in Property Law
Religion: Hindu

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7 Answers

1) builder can request registrar office to register sale deed as payment made prior to registration .it is doubtful that registration would be permitted 

 

2) under section 6 of RERA act promoter can apply for project extension for a maximum period of 1 year. Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary for period not exceeding 1 year.

 

3)The department of revenue and forest has issued a Government Regulation dated 20th September 2019, in which it has stated that the registration of agreement for Sale / Sale Deed of any apartments will be done only if the project is registered or excluded from Registration under real estate act .

 

4) the sale deed is executed after the RERA registration has expired, it may not be legally valid. The buyer might not have recourse under RERA, which protects buyers against builders and developers.

 

5) insist that builder has applied for and been granted extension of time by RERA before you register sale deed 

Ajay Sethi
Advocate, Mumbai
96141 Answers
7735 Consultations

5.0 on 5.0

1) you cannot apply for registration as the circular cited herein above prohibits registration if RERA registration has expired 

 

2) it cannot be done as RETA registration has expired 

 

3) registration can be done within 4 months of execution of sale deed if registration under RERA is in force 

 

4) stamp duty cannot be paid after RERA expiry 

 

5) merely on basis of OC application registration cannot be done 

 

6) already informed that you insist that builder seeks extension from RERA 

Ajay Sethi
Advocate, Mumbai
96141 Answers
7735 Consultations

5.0 on 5.0

1. real estate regulatory authorities (RERA) do not allow extensions for project registration beyond one year. There are further restrictions of not transferring the project to the allottees/association till the promoter obtains the completion/occupancy certificate. The Real Estate (Regulation and Development) Act (RERA) of 2016 allows for a project's registration to be extended in certain circumstances, but not beyond one year.

2. Your question is based on some rumors spread by people who do not know the law properly, there is no such thing. Property registration must be completed within four months of executing the sale deed and not from the date of executing the sale agreement.

3. Your builder may give some lame excuses which are not maintainable in law

4.Without paying the stamp duty the property cannot be registered

5. The OC is not a document which is required mandatorily for property registration as its not a document of title evidencing the ownership of the seller instead it is required only if the stamp duty benefit is being claimed on account of old construction. Sometimes, the purchaser takes the benefit/depreciation of the stamp duty in the event of sale of flat of an old building, in such case the Sub-registrar in order to check the veracity of the construction insist on the copy of occupancy certificate or municipal assessment bills.

T Kalaiselvan
Advocate, Vellore
86341 Answers
2293 Consultations

5.0 on 5.0

The opinions are given taking care of the prevailing law in respect of the problems you are facing.

The builder may be insisted to apply for extension of RERA if that is the only impediment for doing the registration of the property.

As a matter of fact the OC is not a mandatory document for registering the flat, but since the property came under the RERA registration and s the registration stands expired, the builder is somehow trying to push the property to obtain OC without completing the construction on the basis of the occupation of the property by the owners, the renewal fee for RERA extension may be additional expenses for the builder hence he is trying to bear it, if the builder is not cooperating then you can issue a legal notice to him to either get the property registered as per law or to refund the booking amount with interest and after that you can drag him to the consumer forum for relief and remedy

T Kalaiselvan
Advocate, Vellore
86341 Answers
2293 Consultations

5.0 on 5.0

it is highly unfortunate what has happened to you

i think the builder has been fooling you

if his rera registration had expired then under the law he could NOT accept any further payments from you unless and until he got his rera registration renewed

so the builder could not have collected any payments from you after 30.7.24

secondly the builder telling you that the sub-registrar is not registering the agreement for sale because there is no rera registration or that the registration has expired, is complete rubbish. The sub-registrar has under the registration act no such jurisdiction to refuse registration of the agreement due to rera registration having been expired. I would really like to know and I am quite curious under which provision of law did the sub-registrar refuse the registration as there was no rera registration

thirdly the builder is obligated under RERA to compulsorily register an agreement for sale upon receiving 10% of the total sale consideration

in your case i believe the builder has illegally accepted more than 10% from you without valid rera registration, and did not bother to enter into and register an agreement for sale with you. Because now he is trapped he has come up with the bogey that the sub-registrar is refusing to register the agreement

also if the agreement for sale is already signed by you then it has to be stamped and registered max within 4 months from the date of signing. The registration of the signed document can be done beyond 4 months also, but subject to max another 4 months, with payment of penalty. I do not know whether or not you have already signed the agreement for sale. 

your builder telling you that in order to register the agreement within 4 months you should have paid the stamp duty before rera expiry is again complete nonsense. As per the stamp act stamp duty has to be paid before signing or on the date of signing or on the day immediately after the day of signing. I dont know where this payment of duty before rera registration expiry, comes from. It seems the builder has been making his own rules and conning you

i do not believe that just on applying for OC your agreement for sale can be registered. In my view your agreement for sale if it is duly signed and stamped, can be registered right away. It has got nothing to do with expiry of rera registration since the sub-registrar has got no power to require renewal of rera registration for registering the agreement for sale. I think if your agreement for sale is registered, then the builder will be exposed that he accepted payments from the flat buyer even after expiry of the rera registration and also he did not bother to register an agreement for sale after having accepted 10% of the total sale price. Both of these are offences under Rera. To cover his faults and guilt, he is cooking up any story before you. Highly unfortunate. 

Please have a legal notice issued to the builder and then consider filing a RERA complaint [I believe, on a prima facie view, that even if the rera registration has expired, a rera complaint can still be filed, because the project was rera registered. Its just the builder did not bother to renew his registration to save some charges]

Yusuf Rampurawala
Advocate, Mumbai
7625 Answers
79 Consultations

5.0 on 5.0

Dear Client,

Based on your situation regarding the purchase of a flat and the implications of the RERA expiration, It can be considered that, the builder is right on the mark where he says that you can apply for registration based on the initial down-payment of ₹5 lakhs paid before the RERA is expired, but the expired RERA registration makes things a little tough. Although, you are free to register the property within four months from the agreement, it highly depends with the provisions of RERA because every project must be in compliance with the RERA rules and regulation at the point of registration. The builder’s argument that in order to avail the four months window one has to pay stamp duty is partially correct as while it has to be paid; it does not necessarily have to be paid before the RERA expiration. You can pay the stamp duty after RERA has expired but this may have an implication on the registration. Further, the builder claimed that applying for an Occupancy Certificate (OC) can open the doors for registration, however, the OC has to be approved for registration to take place. Therefore, it would be wise to keep all the communication records with the builder,  consult from an expert lawyer dealing with real estate and RERA and, if needed, you can approach to the RERA authority if the builder does not act to correct the mistake made in the registration process.

 

I hope this advice is fruitful.

Anik Miu
Advocate, Bangalore
9812 Answers
115 Consultations

4.9 on 5.0

1. As per law, if the RERA expired , then the builder cannot sell and transfer the property , and hence there is lease chances of registration on the ground that the deal was finalized before the expiry.

2. As per Section 23 of the Registration Act, the time limit for registration of documents before a Sub-Registrar is four months from the date of execution of the deed.

- However, as the builder was registered earlier under the RERA , then in the absence of a valid registration with the RERA , he cannot registered the property in the name of buyer. 

- Further, in the absence of a RERA registration, you may trouble in future, as builder will not mention in your registration document that he has RERA registration at the time of execution of the deed. 

3. Not valid 

4. Payment of stamp duty is mandatory for the registration , however if the stamp duty is already paid within the period of 4 months then it can be registered. 

- However, the main problem is expiration of RERA Registration at the time of execution of the deed.  

5.  Not true. 

Mohammed Shahzad
Advocate, Delhi
14112 Answers
211 Consultations

5.0 on 5.0

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