Q. If a builder wants to transfer his RERA registered project to a third party, is he required to take consent of the homebuyers? In such a case, is a simple majority enough? Are the terms of the agreement signed with the old developer binding on the new one? Does MahaRERA have any role to play in such transfers?
Ninad Sule, Santacruz (W)
A. In case of such transfer, the builder is required to take prior written consent of 2/3rd homebuyers (allottees). Section 15 of RERA deals with such transfers. However, this is not enough. The outgoing builder (promoter) has to apply to MahaRERA and seek its approval for such the transfer. The new promoter cannot alter the terms of the old agreement to the disadvantage of the allottees.
In fact, Section 15 of RERA specifically states that “such transfer or assignment shall not affect the allotment or sale of apartments (flats) in the real estate project made by the erstwhile promoter”. It is noteworthy that Section 15(2) specifically states that “on transfer or assignment being permitted by the authority, the intending promoter shall be required to independently comply with all the pending obligations under the provisions of the RERA Act, Rules and Regulations and the pending obligations as per the agreement for sale entered into by the erstwhile promoter with the allottees”.
The new promoter is required to give a registered undertaking to MahaRERA, stating that he shall comply with all the obligations under the agreement of sale executed by the erstwhile promoter and assume all the obligations. You will thus note that MahaRERA has a statutory role to protect the interest of the allottees in case of transfer of registered. Notably, the following transfers do not require the consent of allottees and permission of MahaRERA as per MahaRERA circular number 24/A dated July 23, 2021: (a) Partnership firm into LLP/ Private Limited Company or (b) Conversion of Private Limited Company or unlisted Co. to a LLP or otherwise (c) Proprietorship change by succession to legal heirs.
(The writer is president of the Mumbai Grahak Panchayat. Queries may be sent to shirish50@yahoo.com)
