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Property Related Laws Goa Department of Housing and Urban Development Real Estate (Regulation and Development) Act, 2016

Circular regarding Mortgaging or creating a charge on apartment, plot or building after executing Agreement for sale

31-May-2023 | F.No: 1/RERA/Circulars/2019/453

Goa Real Estate Regulatory Authority has issued Circular regarding Mortgaging or creating a charge on apartment, plot or building after executing Agreement for sale, effective from 31st May 2023 By virtue of the circular, all the promoters are required to comply with these directions: a. Not to mortgage or create a charge on apartment, or plot or building after executing Agreement for sale in the first instance. b. If a mortgage or charge is created then not withstanding anything contained in any other law for time being in force, it shall not affect the right and interest of the allottee who has taken or agreed to take such apartment, plot or building as the case may be. c. The promoter should inform all existing allottees immediately regarding mortgaging or creating charge on the apartment, or plot or building as well as allottees right under section 11(4) (h) of the Real Estate (Regulation and Development) Act, 2016. Further, the promoter should incorporate a clause under the Agreement for sale in respect of all prospective buyers to this effect. d. It is the obligation of the promoter to apprise provisions under section 11(4) (h) of the Real Estate (Regulation and Development) Act, 2016 to the Competent Authority in whose favour such mortgage or charge will be created against apartment, plot or building as the case may be, in a real estate project.

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