KRERA requires the developer to restore the plot to the original homebuyer even when it was sold to a new owner

KRERA requires the developer to restore the plot to the original homebuyer even when it was sold to a new owner

Krera

The developer was prepared to reimburse the purchaser for the original payment, but the authorities made the developer sign the sale document and turn over the land.

A planned development, Bella Palms is presently unregistered under KRERA in Belgaum.

The Karnataka Real Estate Authority (KRERA) has mandated that a developer give back an already-sold block of land to the original buyer after an eight-year delay.

In this instance, the buyer ceased making the outstanding payment after the developer neglected to sign the sale document. The developer then made the decision to sell it to a different buyer and terminate the contract.

However, in accordance with the ruling granted on April 20, KRERA mandated that the developer return the land to the original homeowner because of contractual responsibilities.

Currently unregistered by KRERA, Bella Palms is a projected development located in Belgaum.

The situation

In2014, Vega Spaces, the developer, received a Rs 16 lakh investment from the purchasers, Col Sai Krishna and his family. However, despite many warnings, the developer did not sign the selling document until 2017, when he paid about Rs 9 lakh.

Krishna demanded in a complaint filed with KRERA that the site be given to them and that the sale document be completed.

The developer, however, challenged the matter before the authorities, claiming that the buyer had acknowledged the initial payment but had not followed through to pay the outstanding balance.

"Thus after a waiting period of three years, it held that the allotment was cancelled as well as the homebuyer is entitled to a refund," Vega Space said to KRERA.

Following the approval of a new sanction plan for the project in 2020 by Belgaum Urban Development, the local planning body, the developer made the decision to sell all of the plots to outside parties.

"The sale deed cannot be performed since the buyer failed to provide the outstanding balance prior to the creation of the revised layout. And we're prepared to reimburse him for the money he originally paid," the developer said.

The directive

Although the developer was willing to return the money that had been spent, KRERA pointed out that in 2014, the firm and the homeowners signed an allocation agreement.

Following the approval of the new project plan, the firm opted to sell the plots to third parties, noting that it had to wait three years for the homeowner to come forward to pay the remaining sum.

The letter of assignment, according to KRERA, is a crucial contractual requirement that is legally enforceable. "The developer is required by the agreement to turn over said apartment by 2017." However, the sale deed's signature and transfer are still waiting," the authorities said.

KRERA mandated that the developer execute the sale deed without raising the plot prices after accepting a sizeable payment from the buyer.

"The developer has to register the project under KRERA as one that continues and also handover the plot to the homebuyer after signing a sale deed," it said.