REAL ESTATE UPDATE
15 June, 2022
Issue No. 07/22-23
PROFORMA OF THE ALLOTMENT LETTER | MAHARASHTRA REAL ESTATE REGULATORY AUTHORITY
In order to bring transparency and standardization in the real estate dealings, the Maharashtra Real Estate Regulatory Authority (“Authority”) issued an order dated 3rd June 2022 (“Order”) standardizing the proforma of the Allotment letter to be uploaded with the Authority by the promoter at the time of registration of the real estate projects.
Any deviation from the proforma agreement for sale, must be highlighted at the time of uploading the same. Non-compliance of the Order or modification from the proforma of the agreement for sale, the application of the promoter for registration of real estate project may be rejected.
Following are the key take aways from the proforma of the Allotment letter:
- The promoter has to disclose details of the parking spaces (including the open car spaces) to the respective allottee.
- In case the allottee wishes to cancel the booking, the minimum period within which such booking can be cancelled along with the upper limit of the percentage of the amount to be deducted is to be briefly mentioned as provided in Table 9 of the proforma.
- The allottee has to execute the agreement for sale within 2 months from the date of issuance of the Allotment letter. In case the allottee fails to execute the agreement for sale, a notice shall be served upon him by the promoter to execute the agreement for sale within 15 days from receipt of such notice.
- In case of further delay by the allotee in executing the agreement for sale, the promoter is entitled to cancel the Allotment letter and forfeit the amount not exceeding 2% of the cost of said unit and the balance amount due is to be refunded to the allottee without any interest within 45 days from the date of expiry of the notice period.
- In the event the balance amount is not refunded within 45 days allottee shall be entitled to receive the balance amount with interest at the rate which shall be the SBI highest marginal cost of lending rate plus 2 percent.
The order along with the proforma of the Allotment letter can be accessed here.
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