Indian Tribunal Rules Emails Valid for Project Alterations, Clarifies Sale Agreement Registration
The Karnataka Real Estate Appellate Tribunal (K-REAT) has ruled that email exchanges can constitute valid written consent for real estate project alterations under RERA, while also clarifying the conditions for sale agre
A recent ruling by the Karnataka Real Estate Appellate Tribunal (K-REAT) has provided crucial clarifications for both developers and homebuyers under the Real Estate (Regulation and Development) Act (RERA) in India. The tribunal determined that emails can serve as valid written consent for developers seeking to modify project features.
Project Alterations and Allottee Consent
The case originated from a dispute involving Sobha Ltd.'s Sobha Sentosa residential project in Bengaluru. Homebuyers Abhishek Senapati and Avishruti Senapati alleged that the developer made unauthorised changes after their unit purchases, specifically citing the replacement of French windows with ventilator windows and alterations to features like the Super Tree and Gazebo.
Sobha Ltd. Countered these claims by asserting that the modifications were a result of extensive meetings and email exchanges with purchasers. The developer submitted evidence showing that 345 allottees had responded with approval to the proposed changes, while 94 did not respond. Sobha construed this as 82% of the allottees having no objection, which the K-REAT accepted as valid written consent.
Sale Agreement Registration Requirements
Separately, the tribunal addressed the registration of the agreement for sale. Sobha Ltd. Challenged an earlier directive from Karnataka RERA requiring the registration of an agreement that had been executed in 2022-23. The developer argued that the agreement could not be presented for registration beyond the period stipulated by law.
The K-REAT sided with Sobha Ltd. On this point, referencing Section 23 of the Registration Act, 1908. This section mandates that documents, excluding wills, must be presented for registration within four months of their execution. The tribunal clarified that an agreement for sale is merely an executory contract and does not, in itself, create any right, title, or interest in immovable property. The operative instrument for transferring title is a duly registered sale deed.
Consequently, the K-REAT ruled that if a promoter is ready and willing to execute a registered sale deed to convey title, insisting on the prior registration of an outdated agreement for sale serves no substantive purpose. The tribunal allowed Sobha's appeal, setting aside the direction for agreement registration and dismissing the allottees' request for additional reliefs.
Questions, answered
- What did the Karnataka REAT rule regarding project alterations?
- The K-REAT ruled that **email exchanges** can constitute valid written consent from allottees for developers to make alterations to a real estate project under RERA, provided there is a clear record of communication and approval.
- Which specific project was involved in this ruling?
- The ruling arose from a dispute concerning **Sobha Ltd.'s Sobha Sentosa residential project in Bengaluru**, where homebuyers alleged unauthorised changes such as replacing French windows and modifying features like the Super Tree and Gazebo.
- What was clarified about the registration of sale agreements?
- The K-REAT clarified that agreements for sale must be presented for registration within **four months of execution**, as stipulated by **Section 23 of the Registration Act, 1908**, and emphasised that a registered sale deed is the sole operative instrument for transferring title.
- How did Sobha Ltd. Argue they had consent for changes?
- Sobha Ltd. Contended they had received consent through **email exchanges** and deliberations, with **345 allottees** approving changes and 94 not responding, which they interpreted as 82% of allottees having no objection to the modifications.
- What is the significance of a registered sale deed versus an agreement for sale?
- An agreement for sale is an executory contract that does not transfer actual right, title, or interest in immovable property. The **registered sale deed** is the crucial legal document that formally conveys and establishes ownership of the property.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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