Posts tagged ‘promoters’

Duties and liabilities of the promoters of an apartment (Part-II)

Similarly the promoter shall not give possession of the apartments to the purchasers until he obtains a completion certificate / Occupancy certificate from the concerned authorities.

Under law, the promoter is duty bound to make a full and true disclosure of all outgoings, including ground rent, local taxes, water, electricity charges, assessment, interest on any mortgage etc. Further the promoter shall give the buyer true copies of the documents pertaining to the apartment.

Before accepting any advance payment or deposit from any purchaser regarding the purchase of a flat, a promoter shall enter into a written agreement and the said agreement shall be registered. Similarly the promoter is liable to maintain separate accounts of sums taken as advance or deposit and to be a trustee thereof and shall disburse them for purposes for which they were given.

It shall be the duty of the promoter to pay all outstanding on the flat till the property is transferred to the purchasers, provided he has collected the same from the intending purchasers. Similarly the promoter cannot unilaterally alter or add to the plans and specifications without the consent of the persons who have agreed to take the flats.

Duties and liabilities of the promoters of an apartment (Part-1)

A promoter of an apartment shall make full and true disclosure to the intending buyers of apartments, details regarding the nature of his title to the land on which the flats are constructed, such title duly certified by an Advocate of not less than seven years standing. He shall also make full and true disclosure of all encumbrances on such land, and shall allow inspection on reasonable notice, of the plans and specifications of the buildings, built or to be built on the land. Further such plans and specifications shall have to be approved by the local authority under the law in force.

The promoter is also duty bound to disclose the nature of fittings, fixtures and amenities to be provided; as well as the particulars in the design and the materials to be used in the construction of the building. A promoter shall also specify in writing the date by which the possession of the flats is to be handed over.

The promoter shall also prepare and maintain a list of flats with their numbers and the name and addresses of the parties and the price charged or agreed to be charged. He shall also state in writing the nature of the organization of persons to be constituted and to which title is to be passed, and the terms and conditions governing such organization of persons.