The Goa Real Estate Regulatory Authority (Goa RERA) has asked real estate developers in the state not to mortgage any property after executing an agreement for sale with buyers.
In a circular issued to builders on June 7, 2023, Goa RERA said that even if a mortgage is created, it will not affect the right or interest of the allottee. However, the promoter has to inform all existing allottees immediately regarding the mortgage as well as appraise them about their rights under the Real Estate (Regulation and Development) Act, 2016.
The promoter should also reveal the fact of the mortgage to prospective buyers by incorporating a clause under the agreement of sale. It is also obligatory for promoters to inform the competent authority (Goa RERA) about the said mortgage.
Credai-Goa, the apex body of real estate developers in the state, said that the latest circular from Goa RERA is "logical and welcome". However, it said that the circular would need certain clarifications, as it would affect developers who avail of project finance from banks.
The circular comes at a time when the real estate sector in Goa is facing a number of challenges, including a slowdown in sales and rising costs of construction. The sector is also facing a number of legal challenges, including a number of cases filed by homebuyers against developers for delay in delivery of projects.
The Goa RERA circular is seen as an attempt by the government to protect the interests of homebuyers and ensure that they do not suffer due to the actions of developers.
Via: Navhind Times
Goa RERA
