The Agreement for Sale Cancellation Act: What You Need to Know
The Agreement for Sale Cancellation Act is a law in India that specifically deals with the cancellation of sale agreements made between buyers and sellers of property. This act was introduced in 2017 and is intended to protect the interests of both parties in case of disputes.
Why was the Agreement for Sale Cancellation Act introduced?
Before the introduction of this act, buyers were often at the mercy of developers who had the power to cancel sale agreements unilaterally. This left buyers without any recourse, and they were left to either accept the cancellation or fight lengthy legal battles.
The Agreement for Sale Cancellation Act was introduced to provide buyers with more protection and to ensure that developers cannot arbitrarily cancel sale agreements. This act makes it mandatory for developers to refund the entire amount paid by the buyer, along with interest, in case they cancel a sale agreement.
What are the main provisions of the Agreement for Sale Cancellation Act?
The Agreement for Sale Cancellation Act has several important provisions that protect buyers. Here are some of the key provisions:
1. Developers cannot cancel sale agreements without the consent of the buyer.
2. Buyers have the right to cancel a sale agreement if the developer fails to provide possession of the property within the agreed-upon timeframe.
3. Developers must refund the entire amount paid by the buyer, along with interest, within 60 days of the cancellation of the sale agreement.
4. The act applies to both residential and commercial properties.
5. The act provides the buyer with the right to approach the Real Estate Regulatory Authority (RERA) in case of any dispute.
How does the Agreement for Sale Cancellation Act benefit buyers?
The Agreement for Sale Cancellation Act is a welcome relief for buyers who were often left in the lurch by developers. This act provides buyers with more protection and ensures that they are not left out of pocket in case of a cancellation.
Under this act, developers are now required to be more transparent and accountable, which is a win for buyers. They can now be assured that they have a legal recourse in case of disputes and can approach RERA for a resolution.
In conclusion, the Agreement for Sale Cancellation Act is an important piece of legislation that provides much-needed protection to buyers. This act has made developers more accountable and transparent, which bodes well for the future of the real estate sector in India. Buyers should be aware of their rights under this act and ensure that they are protected in case of a dispute.