Legal Rights Transfer Under RERA

Kamlesh Yadav K


Real estate in India has been long criticized for unfair practices which were carried out in the industry. Lack of transparency and immoral acts by builders were once quite a troublesome for customers. One of the many problems which customers used to face earlier was while transferring the right of their property to person. 

In most cases, whenever someone wanted to sell their flat, they were asked by builder to pay a transfer fee which was generally in between Rs. 200 – 1000 per square feet. Now this is not a small figure and paying such huge sum of money to someone who you have already paid enough to buy the apartment was not very pleasant. 

Taking in account these loopholes, The Real Estate (Regulation and Development) Act, 2016, was brought in picture. This Act, which has a total of 92 sections, mentioned regulations for transfer of legal rights of a property. 

Section 17 of the Real Estate Regulatory Authority Act, 2016 brought in picture for transfer of Title of the property states:

Section 17.1.

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 

Provided 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 under this section shall be carried out by the promoter within three months from date of issue of occupancy certificate.


After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to hand- over the necessary documents and plans, including common areas, to the association of the allottees or the competent authority as per the local laws

Provided that, in the absence of any local law, the promoter shall handover the necessary documents and plans, including common areas, the association of the allottees or the competent authority within thirty days after obtaining the occupancy certificate.

In simple words, the act says that the title of any property & transfer the ownership must be transferred from one buyer to another after referring to the ‘chain of transfer’ of that property which may have happened in the past.

It ensures that the sale of real estate project in carried out in an efficient and transparent manner and protects the interest of consumers in the real estate sector along with establishing an adjudicating mechanism for speedy dispute redressal by establishing the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

As per the law, any buyer who has properly done checks, reviews and has paid the agreed consideration price in legal mode of payment is a bona-fide buyer.

In the areas where local laws are applied and have not been ceased even after institution of the Real Estate Regulatory Act, 2016, are regulated and governed by the same.

Inside indicated period implies, in case there are no Local laws in presence, if there should arise an occurrence of an undertaking with Single structure, the transport deed will be executed for the allottee inside 03 (90 days) from the date of Occupancy testament or then again if full thought is paid by 51% of the absolute allottees, whichever is earlier. In instance of a bigger format comprising of more than one structures, corresponding to move of title of a structure, provided that no period for move of such title to the legitimate substance of the allottees is settled upon, the Promoter should execute the movement of the design of that structure inside all things considered 

(I) One month from the date on which the Co-employable society or the organization is enlisted or relationship of the allottees is appropriately comprised ‘or’ 

(ii) Inside 90 days from the date of issuance of Occupancy Certificate, whichever is prior. 

In such cases where a promoter fails to abide by the sale agreement, either by failing to deliver possession of the property or due to halt in registration due to cancellation of registration leading to discontinuance of his business as a developer or for whatsoever reason, he will be liable to return the amount received from the allottees, with interest rate as prescribed by the Act.

If the allottee doesn’t wish to receive monetary compensation and chooses to wait for the property possession, he shall be paid, by the promoter, premium for each month of postponement, till the giving over of the property, at such rate as might be recommended.

For the developers to avoid such downfall, the Real Estate Regulatory Authority has also mandated all developers to take ‘Title Insurance’ to cover all financial losses, legal expenses and other costs which may be suffered due to transfer of wrong title of the property in the chain of transfers.


The rules and regulations of RERA should be followed strictly to avoid any legal obligations. But to take care of such things, you must be aware of it first. Therefore, it is crucial to be informed and updated. Now that is easier than you might think because all the information you wanted can be found at one place. Follow our page to read the blogs that will help will grow your understanding about the industry. You can also mail us to for any real estate service.


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