Section 15 of RERA : Section 15: Obligations Of Promoter In Case Of Transfer Of A Real Estate Project To A Third Party
RERA
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Explanation using Example
Imagine that Mr. Sharma is a promoter of a housing project called "Sharma Residency," which is still under construction. He has sold 60% of the apartments to various buyers. Due to financial difficulties, Mr. Sharma decides to transfer his rights and responsibilities of the project to another developer, Mr. Gupta. According to Section 15 of The Real Estate (Regulation and Development) Act, 2016, Mr. Sharma must obtain the prior written consent of two-thirds of the apartment buyers (allottees) before he can proceed with this transfer to Mr. Gupta.
Mr. Sharma calls for a meeting with the allottees and explains his situation. Out of 100 allottees, he needs at least 67 to agree to this transfer. After presenting his case, 70 allottees give their written consent. With this consent, Mr. Sharma then approaches the Real Estate Regulatory Authority to get their written approval for the transfer.
Once the Authority approves, Mr. Gupta becomes the new promoter. He must now fulfill all the remaining obligations like completing construction, obtaining necessary certificates, and handing over the apartments to the allottees on time. Mr. Gupta cannot ask for an extension of time to complete the project based on this transfer, and if he fails to meet the deadlines or obligations, he will face the penalties as per the Act.