Skip to content

CS Executive · Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

In a Gurugram project, the promoter proposes to transfer majority rights and liabilities to Skyline Builders. Neeraj owns 6 flats booked in his own and his family's names; other allottees own one flat each. Which statement is correct under RERA, 2016?

Transfer of majority rights needs prior written consent of two-thirds of allottees and prior written approval of the Authority, and an allottee who booked several units, including in family members' names, counts as only one allottee. Existing allotments by the erstwhile promoter remain unaffected.

  1. ANeeraj's six flats count as six allottees for the two-thirds consent
  2. BPrior written consent of two-thirds of allottees and prior written approval of the Authority are needed, and Neeraj counts as one allotteeCorrect
  3. COnly the Authority's approval is needed, with no allottee consent
  4. DTransfer cancels existing allotments made by the erstwhile promoter

Explanation

Section 15(1) requires prior written consent of two-thirds of allottees (excluding the promoter) and prior written approval of the Authority. The Explanation treats an allottee with several units, including those booked in family names, as one allottee. The proviso says the transfer does not affect existing allotments, so the last option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Real Estate Regulation and Development Law shows your real accuracy, how long you take and where you lose marks.

Practise Real Estate Regulation and Development LawFree diagnostic mock

More Real Estate Regulation and Development Law questions