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Is real estate(regulation & development) act,2016 applicable for lease agreements?

16 March 2019

X gives his site(above 10,000 sq.ft.) to Y under the contract of lease for commercial purpose? Is Real Estate(Regulation & Development) Act, 2016 applicable? What are the documents to be submitted to Real Estate Regulatory Authority(RERA) and by whom(i.e. X or Y)?

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 16 March 2019

Agreement to lease Promoter includes Lessor Bombay High Court Order

Real Estate developers have been trying to avoid the applicability of Real Estate Regulatory Act (RERA) on their projects and transaction. One of the more common practice followed by real estate developers is to structure the agreement of sale transaction in the form of agreement of lease with perpetual right to the Lessee and his/her successors, right to transfer the lease etc.

The Developers have contended that the term Promoter and allottee as defined under RERA do not include a Lessor and a Lessee and therefore the lease transactions are outside the purview of jurisdiction of Real Estate Regulatory Authority.

The aforesaid preposition has been challenged before the Maharashtra Real Estate Regulatory Appellate Authority and Bombay High Court. The Bombay high court has confirmed applicability of RERA on sale via agreement to lease.