In a significant ruling, the Supreme Court of India has declared that offering possession of a flat without obtaining essential completion and firefighting clearance certificates is illegal. This landmark decision reinforces the responsibility of real estate developers to secure these certificates before handing over property to buyers, marking a crucial development in consumer protection within the real estate sector.
The court’s decision underscores that such an offer of possession constitutes a deficiency in service under the Consumer Protection Act. This ruling ensures that homebuyers are not compelled to accept possession of flats that lack these critical safety and completion certifications.
Legal experts have praised the Supreme Court’s order for holding developers accountable. The ruling mandates that developers must obtain completion certificates and firefighting clearance certificates prior to offering possession of a flat. This move is aimed at protecting homebuyers from accepting incomplete or unsafe properties and enforcing adherence to legal safety standards.
Key Points from the Supreme Court Order
In the case of Dharmendra Sharma v. Agra Development Authority, the court emphasized that possession offers made without the requisite certificates are legally invalid. The court found the absence of these certificates to be a significant deficiency in service. It directed the Agra Development Authority (ADA) to compensate ₹15 lakh to Dharmendra Sharma for failing to provide these essential documents when the flat was offered in 2014.
The court noted that Section 4(5) of the UP Apartment (Promotion of Construction, Ownership & Maintenance) Act, 2010 and Section 19(10) of the Real Estate (Regulation and Development) Act, 2016 both require developers to secure these certificates before offering possession.
The decision also highlighted that homebuyers have the right to refuse possession if these certificates are not provided. This protection is crucial for ensuring that developers adhere to legal requirements and deliver safe and complete properties.
Implications for Real Estate Practices
This ruling is expected to have widespread implications, particularly for projects that began before the RERA regime. It reinforces the need for developers to comply with statutory obligations and ensures that buyers receive properties that meet safety and completion standards.
Legal experts have welcomed the ruling, stating that it aligns with previous Supreme Court decisions and emphasizes the developer’s responsibility to obtain necessary certificates. This order serves as a critical check on builders and development authorities, ensuring compliance with legal standards and safeguarding the interests of homebuyers.
Advice for Homebuyers
Homebuyers are advised to insist on obtaining completion and fire safety certificates before accepting possession of a property. These documents are crucial for ensuring the structural safety and compliance of the building. Buyers should include the requirement for these certificates in their due diligence process to avoid potential issues related to property safety and legality.
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