Sunshine Builders Pvt. Ltd. launched a residential project named Green Valley Residency in 2023 comprising 120 apartments on 2,000 sq. meters of land. The promoter started advertising the project through brochures and on
CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · June 2026
Sunshine Builders Pvt. Ltd. launched a residential project named Green Valley Residency in 2023 comprising 120 apartments on 2,000 sq. meters of land. The promoter started advertising the project through brochures and online portals, promising possession within 24 months and highlighting amenities such as a clubhouse and landscaped gardens. The promoter accepted booking amounts up to 20% of the apartment cost from several buyers without executing a registered agreement for sale. Some buyers paid advances based solely on the advertisement and model flat displayed at the site office. Sunshine Builders applied for registration of the project before the Real Estate Regulatory Authority (RERA) but failed to disclose certain pending litigation relating to the title of the land. The Authority did not communicate approval or rejection within 30 days. Meanwhile, the promoter continued construction and marketing activities. After two years, the project remained incomplete and possession was delayed by 12 months beyond the promised date. Further, certain promised amenities were not constructed. Devendra, an allottee, decides to withdraw and seek refund, while another allottee, Surendra, wants possession along with compensation for delay. The promoter has also neither executed conveyance deeds nor handed over the common areas despite obtaining the occupancy certificate. Aggrieved allottees have now approached RERA seeking relief. Based on above facts, answer the following under the Real Estate (Regulation and Development) Act, 2016: What are the promoter's obligations regarding execution of conveyance deed and transfer of common areas under Section 17 of the Act?
Answer & Explanation:
Under Section 17 of the Real Estate (Regulation and Development) Act, 2016, the promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws. It may be noted that in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate.
Topics: Real Estate Law
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