Transfer of Title under RERA – A Complete Guide

Transfer of Title under RERA
Karan Singh
| Updated: Jan 22, 2021 | Category: RERA

The transfer of title under RERA means it is an act of transferring the property ownership from one individual to another. Before transferring the ownership to other the promoters and the allottees must know all RERA laws regarding the transfer of title under RERA. Real Estate Regulatory Authority or RERA 2013 is an exciting law passed by the Government of India, which defines the rules and regulations that must accurately be followed; otherwise, the trespassers are subjected to punitive actions. Scroll down to check more information regarding the transfer of title under RERA.

Section 17 of the RERA Act, 2016

  1. As per Section 17 (1) of the RERA Act, 2016[1]:
  2. The promoter must accomplish the registered conveyance deed in favour of an allottee with the complete proportionate title in the common area to the association of the allotted. The promoter must also transfer the apartment to the allottees, the physical possession of the plot, and the common areas to the allottees and other documents related to the title with a particular time provided under the local laws.
  3. The provision to Section 17 (1) under the RERA Act, 2016 defines that in the absence of any local law conveyance deed in favour of the allottees should be carried out by the promoter within three months from the issuance date of occupancy certificate.
  4. As per Section 17 (2) of RERA Act, 2016:
  5. After transferring physical possession to the allottees and obtaining the occupancy certificate, it’s the promoter’s responsibility to hand over the essential documents and plans including common areas to the association of the allottees/competent authority.
  6. Section 17 (2) provision of the RERA Act defines that in the absence of any local law, it is the promoter’s responsibility to hand over all the vital documents and plans to the competent authority or the association of the allottees within thirty days after getting the occupancy certificate.

What are Local Laws? – An Overview

Local laws are related to note that before RERA (Real Estate Regulatory Authority) that being took into force, many state legislations were already in effect on a similar subject. Apart from the Maharashtra Regulation and Development Act, 2012, none of these laws has been replaced by the Real Estate Regulatory Authority, and thus they continue to remain in force. For example, even in Maharashtra, this Act as mentioned above has been cancelled. The Maharashtra Apartment Ownership Act, 1972, (MAOA) and the Maharashtra Ownership Flats(Regulations for the same, management, promotion of construction, and transfer) Act, 1963, (MOFA) have not been cancelled and continued to be in force.

On the other hand, suitable Governments which include the States Government or Union Territories, under the Section 84 of Real Estate Regulatory Authority (RERA), are allowed to make rules for carrying out RERA provisions and several states in India have already advised rules. For example, Maharashtra has already notified the Maharashtra Real Estate (Regulation and Development) Rules, 2017 (Maharashtra Rules).

Insurance of Title for Protection – Transfer of Title under RERA

Suppose the buyer accomplishes to conduct due diligence detailed. In that case, there is always a chance of not identifying a defect or any error in the title of the property after the RERA Registration which can endanger the interest of home buyers and lenders.

  • The title insurance helps in protecting the buyer of the property against the risk related to a problem in the buyer’s property title, which could not be identified regardless of the performance of reasonable due diligence.
  • This insurance also protects various parties in a property transaction that is developers and the succeeding home buyers from the loss due to title-related issues.
  • Title insurance covers all the financial losses suffered by the developer, lender, landowners, housing society or any other who is eligible policyholder due to the defect in the land’s title and legal expenditures experienced to settle the title argument.

Maharashtra Rules as considered under the RERA Act

Rule 9 (2) (under the Maharashtra Rules) as mentioned under the RERA Act deals with the transfer of title under RERA (Section 17).

According to the Rule 9 (2), for a single building project, if there is no period for assigning the title to a legal company or entity of the allottees is agreed upon, the promoter is bound to accomplish a conveyance.

  • Within the three months from the date of issuance of the occupancy certificate or,
  • Payment of full deliberation by 51% of the total allottees whichever is earlier.

For a larger building project including more than one building, in relation to the transfer of title under RERA of a wing or a building, there is no period for conveying the structure of that wing or building.

  • Within one month from the date of Company Registration or the Co-operative society, the association of the allottees is duly established.
  • Within three months from the date of issuance of occupancy certificate whichever is earlier.

Similarly, in some cases where there is no agreement on the period of transfer the title under RERA of a Promoter in respect of the complete or attached land under all the building along with the basements structures and podium constructed in the plan or design, the promoters are bound to accomplish the conveyance of a complete and inseparable land underneath all building jointly or otherwise.

  • Within three months from the date when an Apex Body or the allottees’ association is duly established.
  • Within three months from the date of issuance of occupancy certificate to the last of the buildings’ design or plan or layout whichever is earlier.

Maharashtra Rules, 2017

  1. As per Rule 9 (2) (i) of the MAHA RERA Rules, 2017: The promoter must carry out the conveyance within three months from the date the allottees in such plot have paid full attention to the promoter.
  2. As per Rule 9 (2) (ii) of the MAHA RERA Rules, 2017: If there is no period for transfer of title under RERA of the promoter to the legal entity of the allottees is agreed upon, the promoter must accomplish the transportation within the three months from the date of issuance of occupancy certificate or 50% of the total number of allottees in such wing or building have paid the full consideration to the promoter or whichever is earlier.

Conclusion

The rules and regulations related to transfer of title under RERA should be followed strictly. It is a critical process; therefore, all the regulations must be adhered to. In case you need any additional information on the same or RERA Registration, please contact Swarit Advisors. Our experienced and skilled experts will cater to all your needs regarding the transfer of title under RERA.

Also, Read: What are the RERA Benefits for NRI Buyers?

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

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