Relief for property buyers in deed execution

Relief for property buyers in deed execution

Land owning agencies such as the Delhi Development Authority can execute the deed of apartments if builders fail to do so, the Delhi High Court has observed.

This will help property buyers to enjoy exclusive rights over their houses and need not depend on the promoter to transfer or mortgage the property, the High Court said.

Allowing a PIL that sought a direction to enforce the Delhi Apartment Ownership Act, a bench of acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw said in case builders fail to execute the deed of apartments, the competent authority of the agencies is empowered to do so.

The bench was hearing the PIL seeking a direction to comply with the court’s May 2010 order, through which land-owning agencies were directed to appoint a competent authority under the Delhi Apartment Ownership Act so that flat buyers can avail benefits under the Act.

Regarding the competent authority, the court described the official as “a secretary in the Delhi administration or the vice chairman of the DDA, or the land and development officer of the central government, who may be authorised by the administrator or by a notification in the official gazette under the Act.”

The court accepted the petitioner’s allegation that as per the Act, the first obligation for executing the deed is on the builder or promoter of a group housing society, and buyers faced problems due reluctance of builders to come forward to facilitate deed execution.

“We direct that if apartment owners apply to the competent authority, the authority shall, after granting opportunity of hearing to builders, pass such orders directing them to execute and register the deed,” the court said.

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