The Punjab Apartment and Property Regulation Act, 1995.

Punjab Apartment and Property Regulation Act, 1995. 
(Punjab Act No. 14 of 1995) 
 
An 
Act 
No. 17-Leg./95.- The following Act of the Legislature of the State o f Punjab received the assent of the 
President of India on the 2 nd  August, 1995, and hereby published for general information:- 
 
to regulate the promotion of the construction, sale , transfer and management of apartments on 
ownership basis, to regulate colonies and property transactions and to provide for registration of 
promoters and estate agents and enforcement of obli gations on promoters and estate agents and for 
matters connected therewith or incidental thereto. 
Be it enacted by the Legislature of the State of Punjab in the Forty-Sixth Year of the Republic of India 
as follows:- 
Part I 
CHAPTER I 
Preliminary 
 
1. Short title, extent and commencement.  - (i) This Act may be called the Punjab Apartment and 
Property Regulation Act, 1995. 
(2) It shall extend to the whole of the State of Punjab. 
2(3) This Act shall come into force on such date as the State Government may by notification in the 
official Gazette, appoint and different dates may be appointed for different areas of the State. 
2. Definitions.  - In this Act, unless the context otherwise requires,- 
(a) "advertisement" means any board, device, letter , model, notice, placard, sign board, or 
representation in any manner whatsoever, wholly or in part, intended for being announced or 
displayed so as to make it generally known; 
(b) "allottee" in relation to an apartment or plot,  means the person to whom such apartment or 
plot has been allotted, sold or otherwise transferred by the promoter; 
(c) "apartment" whether called block, chamber, dwel ling unit, flat, lot, premises, suite, tenement, 
unit or by any other name, means a separate and sel f-contained part of any property, including 
one or more rooms or enclosed spaces, located on on e or more floors, or, any part or parts 
thereof, in a building, or in a plot of land, used or intended to be used for residence, office, 
shop, showroom, or godown or for carrying on any bu siness, industry, occupation, profession 
or trade, or for any other type of independent use ancillary to the purpose specified above and 
with a direct exit to a public street, road or high way or to a common area leading to such 
street, road or highway, and includes any garage or  room whether or not adjacent to the 
building in which such apartment is located, provid ed by the promoter for the use by the 
Published in Punjab GAZ. (Extra) LS Part-1, August 9, 1995 
Act came into force w.e.f. 15.10.1995 
allottee for parking any vehicle or, as the case ma y be, for the residence of any domestic 
servant employed in such apartment; 
[(cc) "apartment building" means a building constru cted on any land, containing five or more 
apartments or two or more buildings with a total of  five or more apartments or any existing 
building converted into five or more apartments;] 
Explanation.  - (1) If a basement, cellar, garage, room, shop or storage space is sold separately from 
any apartment, it shall be treated as an independent apartment and not as part of any other 
apartment or of the common areas and facilities; 
Explanation . - (2) Notwithstanding that provision is made for sanitary, washing, bathing or other 
conveniences as common to two or more apartments, the apartments shall be deemed to be separate 
and self-contained; 
(d) "apartment number" means the number, letter or combination thereof, designating an 
apartment; 
(e) "apartment owner" means the person owning an ap artment and an undivided interest in the 
common areas and facilities appurtenant to such apa rtment in the percentage specified in the 
conveyance deed of apartment; 
Explanation.  - A member of a co-operative housing society of the tenant co-partnership type, or an 
allottee under a hire-purchase agreement, will be deemed to be an owner, entitled to membership of 
the association; 
(f) "association" means an association consisting o f all the apartment owners in a building acting 
as a group in accordance with the bye-laws made by the association under the Punjab 
Apartment Ownership Act, 1995 [and includes or an a ssociation formed under section 17-A of 
this Act;] 
[(g) "building" means any construction or part of a  construction which is intended to be used for 
residential, commercial, industrial or other purposes, whether in actual use or not, and includes 
any out-house, stable, cattle shed and garage;] 
(h) "building regulations" means the rules or regul ations or bye-laws made under any law for the 
time being in force for the erection or re-erection  of buildings or parts thereof and for the 
purpose of this Act includes Zoning Regulations fra med under any law for the time being in 
force; 
[(i) "colony" means an area of land not less than o ne thousand square meters divided or 
proposed to be divided by way of registered sale or  through lease or transfer of physical 
possession of plots or apartment building for resid ential, commercial or industrial purposes 
including cyber city/cyber park, construction of fl ats in the form of group housing or for 
construction of integrated commercial complexes but  does not include any area of abadi deh 
of a village falling inside its Lal Lakir or phirny or land divided or proposed to be divided - 
(i) for the purpose of agriculture: 
Inserted vide Punjab Act No. 21 of  2014, w.e.f 27.08.2014 
Provided that area proposed to be divided is not less than one thousand metres; or 
(ii) by a company, institution or factory for creat ion of housing for its employees provided 
that there is no profit-motive nor ownership of the  houses is transferred to the 
employees and their rights to accommodation are res tricted to the period of their 
employment with company, institution or factory;] 
(j) "common areas and facilities", in relation to a  building, means all parts of the building or the 
land on which it is located and all easements, righ ts and appurtenances belonging to the land 
or the building, which are neither in the exclusive  possession of an apartment owner in terms 
of his conveyance deed of apartment, nor are handed  over or intended to be handed over to 
local authority or other public service agency and shall include the limited common areas and 
facilities; 
(k) "common expenses" means,- 
(i) all sums lawfully assessed against the apartmen t owners by the association for meeting 
the expenses of administration, maintenance, repair  or replacement of the common 
areas and facilities; 
(ii) expenses, declared by the provisions of this A ct or by the bye-laws made by the 
association under the Punjab Apartment Ownership Ac t, 1995, or agreed upon by the 
association, as common expenses; 
(iii) the Government and municipal taxes, including  ground rent and property tax, which is 
not assessed separately for each apartment; 
(l) "competent authority" means any person or autho rity appointed by the State Government, by 
notification in the Official Gazette, to exercise a nd perform all or any of the powers and 
functions of the competent authority under this Act and the rules made thereunder; 
(m) "development charges" means the cost of externa l development works and internal 
development works; 
(n) "development works" means internal development works and external development works; 
(o) "estate agent" means a person who negotiates or  acts on behalf of one person in a 
transaction of transfer of his property, whether by  way of sale, lease, licence, mortgage or 
otherwise, with another person, and receives remune ration for his services in the form of 
commission, and includes also a person who introduc es to each other for negotiation such 
persons or their agents; 
Explanation.  - The person who acts as described in clause (o) shall be deemed to be an estate 
agent, even if he styles himself as a land or housing agent, property or real estate consultant, 
property dealer, realtor, or by any other name; 
(p) "external development works" includes roads and  road systems, water supply, sewerage and 
drainage systems, electric supply or any other work  which may have to be executed in the 
periphery of, or outside, a colony for its benefit; 
(q) "Government" or "State Government" means the Government of the State of Punjab; 
[(r) "internal development works" means roads, park s, footpaths, water supply, sewers, drains, 
tree planting, street lighting, provision for commu nity buildings and for treatment and disposal 
of sewage and sullage water, storm water drainage, rain water harvesting, domestic solid 
waste collection centre, electric line upto individ ual plots or any other work in a colony 
necessary for its proper development, as may be specified by the competent authority; and] 
(s) "joint family" means a Hindu undivided family a nd in the case of other person, a group the 
members of which are by custom joint in possession or residence; 
(t) "land" means a portion of the surface of the ea rth, comprising the ground or soil and every 
thing under it or over it, and things which are att ached to the earth, such as buildings, 
structures and trees, things which are permanently fastened to the earth or to things attached 
to the earth, easements, rights and appurtenances b elonging to them and benefits arising out 
of them and includes the sites of villages, towns and cities; 
(u) "limited common areas and facilities" means tho se common areas and facilities which are 
designated in writing by the promoter before the al lotment, sale or transfer of any apartment, 
as reserved for use of certain apartments to the exclusion of the other apartments; 
(v) "local authority" means a corporation constitut ed under section 4 of the Punjab Municipal 
Corporation Act, 1976 (Punjab Act No. 42 of 1976) o r a committee constituted under section 
12 of the Punjab Municipal Act, 1911 (Punjab Act No . 3 of 1911) or any other authority notified 
by the State Government for the purposes of this Act; 
(w) "person" includes a company, firm, co-operative society, joint family and an incorporated body 
of persons; 
(x) "prescribed" means prescribed by rules made under this Act; 
[(y) "promoter" means the person, – 
(a) who is the owner of land, on which a colony is developed; 
(b) builder, who constructs or causes to be constru cted an apartment building consisting of 
apartments, or converts an existing building or a p art thereof into apartments, for the purpose 
of selling all or some of the apartments to other persons, and includes his assigns; 
(c) colonizer, who develops land into a colony, whe ther or not he also constructs structures on 
any of the plots, for the purpose of selling to oth er persons, all or some of the plots, whether 
open or with structures thereon; 
(d) property dealer or estate agent, who offered or  sells apartments or plots on behalf of the land 
owner or builder or colonizer or any other person, by whatever name he may be called; 
(e) who claims to be acting as the holder of a powe r of attorney from the owner of the land on 
which the building is constructed or a colony is developed; and 
(f) who styles himself as a developer, or by any other name. 
1. Substituted  vide Punjab Act No. 21 of 2014, w.e.f  27.8.2014  
2. Substituted by Punjab Act No. 21 of 2014, w.e.f 27.8.2014 
3. Substituted by ibid. 
Explanation.  - Any development authority and any other public body so notified by the State 
Government are deemed to be promoter in respect of allottees of, - 
(i) building constructed by them on land owned by t hem or placed at their disposal by the 
State Government; or 
(ii) plots owned by them or placed at their disposal by the State Government;] 
(z) "property" means the land, the building, all im provements and structures thereon, and all 
easements, rights and appurtenances belonging there to, and includes every type of right and 
interest in land which a person can have to the exc lusion of other persons, such as 
possession, use and enjoyment free from interferenc e, right of disposition, franchises and 
hereditaments;  
(za) "section" means a section of this Act [; and] 
[(zb) "unauthorized colony" means a colony which ha s been developed in contravention with the 
provisions of the Act and the rules made thereunder.] 
 
CHAPTER II 
Regulation of Promotion of Construction, Sale, Transfer and Management of 
Apartments, Plots and Properties 
 
3. General liabilities of promoter.  - (1) Notwithstanding anything in any other law fo r the time being 
in the force, a promoter, who develops a colony or who constructs or intends to construct a building o f 
apartments, shall, in all transactions with persons  taking or intending to take a plot or an apartment  on 
ownership basis, be liable to give or produce, or c ause to be given or produced, the information and 
the documents mentioned hereinafter in this section. 
(2) A promoter who develops a colony or who constru cts or intends to construct such building of 
apartments shall,- 
(a) make full and true disclosure of the nature of his title to the land on which such colony is 
developed or such building is constructed or is to be constructed, such title to the land having 
been duly certified by an [officer not below the ra nk of Assistant Collector Grade-II after he has 
examined the transactions concerning it in the prev ious ten years] and if the land is owned by 
another person, the consent of the owner of such la nd to the development of the colony or 
construction of the building has been obtained; 
(b) make full and true disclosure of all encumbranc es on such land, including any right, title, 
interest or claim of any party in or [over such lan d duly certified by an authority not below the 
rank of Assistant Collector Grade-II]; 
(c) give inspection on seven days' notice or demand,- 
(i) of the layout of the colony and plan of develop ment works to be executed in a colony as 
approved by the prescribed authority in the case of a colony; and 
 
1. Omitted vide Punjab Act No. 21 of  2014 w.e.f 27.08.2014  
2. Substituted by ibid. 
3. Substituted for words “over such land” vide Punjab Act No. 21 of 2014, w.e.f. 27.08.2014 
(ii) of the plan, and specifications of the buildin g built or to be built on the land as well as of 
the common areas and facilities and common services  provided (including supply of 
electricity and water, sewerage and drainage system s, lifts, fire-fighting equipment), 
such plans and specifications being in accordance w ith the provisions of the building 
regulations, and approved by the authority which is  required so to do under any law for 
the time being in force, indicating thereon what pa rts of the building and the appurtenant 
areas are intended to be kept as common areas and facilities in the case of apartments : 
Provided that the number and sizes of the apartments shall conform to such building regulations, and 
the area of an apartment shall not exceed such limit as may be fixed by the competent authority; 
(d) display or keep all the documents, plans and sp ecifications or copies thereof referred to in 
clauses (a), (b) and (c) of this sub-section at the  site and in his office and make them available 
for inspection to persons taking or intending to ta ke a plot or an apartment and after the 
association is formed, he shall furnish the associa tion a copy of these documents and of the 
sanctioned plan of the building; 
(e) disclose the nature of fixtures, fittings and a menities, including the provision for one or more 
lifts, provided or to be provided; 
(f) disclose on reasonable notice or demand, if the  promoter is himself the builder, the prescribed 
particulars as respects the designs and the materia l to be used in construction, and, if the 
promoter is not himself the builder, disclose all a greements entered into by him with the 
architects and contractors regarding the design, materials and construction of the building; 
(g) specify, in writing, the date by which possessi on of the plot or apartment is to be handed over 
and he shall hand over such possession accordingly; 
(h) except where there are no agreements about spec ific plots or apartments and allotment is 
made by draw of lots, prepare and maintain a list of plots or apartments with their numbers, the 
names and addresses of the parties who have taken o r agreed to take plots or apartments, the 
price charged or agreed to be charged therefor, and  the terms and conditions, if any, on which 
the plots or apartments are taken or agreed to be taken: 
[Provided that the Government may by notification direct, - 
(i) in the case of residential apartments, ten perc ent of the total apartments be reserved for 
economically weaker section of society; and 
(ii) in the case of colony, five percent area of the gross area of the project, be reserved for plots to 
be allotted to the persons belonging to economicall y weaker sections of society, in such 
manner and on terms and conditions, as may be specified.] 
(i) state in writing, the precise nature of and the  terms and conditions governing the association to 
be constituted of persons who have taken or are to take the apartments; 
(j) not allow persons to enter into possession unti l an occupation certificate required under any 
law is duly given by the appropriate authority unde r that law and no person shall take 
possession of an apartment until such occupation certificate is obtained; 
(k) make a full and true disclosure of all outgoing s, including ground rent, if any, municipal or 
other taxes, charges for water and electricity, rev enue assessment, interest on mortgages or 
other encumbrances, if any; 
(l) give the estimated cost of the building and the  apartments proposed to be constructed, or 
colony to be developed, and the manner in which esc alation in such cost for valid reasons may 
be approved by mutual agreement; 
(m) make a full true disclosure of such other infor mation and documents in such manner as may 
be prescribed; and 
(n) give on demand and on payment of reasonable cha rges true copies of such of the documents 
referred to in any of the clauses of this sub-section as may be prescribed. 
4. Issuing of advertisement or prospectus.  - [(1) No promoter shall develop any land into a c olony 
or offer plots for sale or transfer or construct ap artments or issue any advertisement or prospects fo r 
such sale inviting persons to make advances or deposits for booking, unless, - 
(a) he obtains licence under sub-section (3) of sec tion 5, which is in force and has not been 
suspended or revoked and its number is mentioned in the advertisement or prospects ;] 
(b) a copy of the advertisement or prospectus is fi led in the office of the competent authority 
before its issue or publication. 
(2) The advertisement or prospectus issued under su b-section (1) shall disclose the area of the 
apartments or plots offered for sale, title to the land, extent and situation of land, the price payab le 
and in the case of colonies, also layout of the col ony, the plan regarding the development works to be  
executed in a colony and the number and the validit y of the licence issued by the competent authority 
under sub-section (3) of section 5, and such other matters as may be prescribed. 
(3) The advertisement or prospectus shall be availa ble for inspection at the office of the promoter an d 
at the site where the building is being constructed  or on the land being developed into a colony, 
alongwith the documents specified in this section and in section 3. 
(4) When any person makes an advance or deposits on  the faith of the advertisement or prospectus, 
and sustains any loss or damage by reason of any un true statement included therein, he shall be 
compensated by,- 
(a) the promoter, if an individual; 
(b) every partner of the firm, if the promoter is a firm; 
(c) every person who is a director at the time of i ssue of the advertisement or prospectus, if the 
promoter is a company; 
Provided, however, that such person shall not be liable if he proves that,- 
 
1 Substituted for the words “upto one year or with fine which may extent upto five thousand rupees” vide Punjab Act No. 21 
of 2014 w.e.f. 27.08.2014. 
2 Section 5 substituted vide Punjab Act No. 21 of  2014 w.e.f. 27.08.2014. 
(a) he withdrew his consent to become a director be fore the issue of the advertisement or 
prospectus; or 
(b) the advertisement or prospectus was issued with out his knowledge or consent, and on 
becoming aware of its issue, he forthwith gave reas onable public notice that it was issued 
without his knowledge or consent; or 
(c) after the issue of the advertisement or prospec tus and before any agreement was entered into 
with buyers of plots or apartments, he, on becoming  aware of any untrue statement therein, 
withdrew his consent and gave reasonable public not ice of the withdrawal and of the reasons 
therefor. 
(5) When any advertisement or prospectus includes a ny untrue statement, every person who 
authorised its issue, shall be punished with impris onment for a term which may extend [upto three 
years or with fine which may extend upto five lac r upees], or, with both, unless he proves that the 
statement was immaterial or that he had reason to b elieve and did upto the time of issue of the 
advertisement or prospectus believe that the statement was true. 
[5. Development of land into colony . - (1) Any promoter, who desires to develop a land  into a 
colony having the prescribed qualifications, shall make an application in the prescribed form alongwit h 
his title of minimum twenty five per cent of project land and irrevocable consent for the rest of land, if it 
is owned by other persons, permission for conversio n of land use from the competent authority and 
the prescribed information, with the prescribed fee  and charges, to the competent authority for grant 
of permission for the same and separate permission shall be necessary for each colony. 
(2) On receipt of the application under sub-section  (1), the competent authority, after making enquiry  
into the title of the land, extent and situation of  the land, capacity of the promoter to develop the 
colony, layout of the colony, conformity of the dev elopment of the colony with the neighboring areas, 
plan of development works to be executed in the col ony, and in case of apartment buildings, design, 
specification of material to be used, common areas and facilities to be provided, structural safety an d 
fire safety and such other matters as it may specif y, and after affording the applicant an opportunity  of 
being heard and also taking into consideration the opinion of the prescribed authority, shall pass an 
order, in writing recording reasons either granting or refusing to grant such permission. 
(3) Where an order is passed granting permission un der sub-section (2), the competent authority shall 
grant a license in the prescribed form after the pr omoter has complied with the following conditions, 
namely: - 
(i) the promoter shall acquire the title of land no t owned by him, within the time period given in the  
terms and conditions of the licence, and shall not make any sale or transfer of land which is 
not under his title; 
(ii) furnish a bank guarantee equal to thirty five percent of the estimated cost of the development 
works certified by the competent authority, or mort gage plots falling in the same project equal 
to thirty five percent value of estimated cost of d evelopment by equitable mortgage deed to the 
satisfaction of the competent authority in the mann er prescribed, which shall be marked on the 
layout plan and entered in the revenue record; 
(iii) has entered into an agreement with the compet ent authority in the prescribed form for 
carrying out the development works in accordance with the conditions of the licence; 
(iv) has paid, subject to the provisions of sub-sec tion (6), the Change of Land Use Charges, 
External Development Charges and such other charges , as may be notified by the 
Government from time to time. 
(4) In case, a promoter intends to revise the layou t plan or zoning plan of the approved colony or 
building plan, he shall be required to obtain a rev ised permission, subject to fulfilment of all liabi lities 
created due to prior permission, on payment of such  charges and such fee and on such terms and 
conditions, as may be specified after giving due no tice to the plot or apartment holders. However, the  
said revision shall not extend the period of validity of the license granted under sub-section (3). 
(5) The license granted under sub-section (3), shal l be valid for a period of five years and shall be 
renewable for a further period of two years on paym ent of such fee and charges, and on such terms 
and conditions, as may be specified by the competent authority. 
(6) The promoter shall enter into agreement give undertaking to pay development charges for external 
development works carried out or to be carried out by the Government or a local authority. 
(7) The State Government shall determine the develo pment charges and the time within which such 
development charges as referred to in subsection (6 ), shall be paid to the State Government or to 
such authority, as may be notified by the State Government. 
(8) The Government may allow payment of external de velopment charges and other charges 
mentioned in such installments, as may be notified by it from time to time. In such case, the first 
installment shall be deposited before the grant of licence and the promoter shall furnish and give 
undertaking to pay the balance installments as per notified schedule supported by such additional 
bank guarantee or mortgage of such additional prope rty, as may be necessary to secure payment of 
the balance installments. 
(9) The promoter shall carry out and complete the d evelopment of the land in accordance with the 
provisions of the Punjab Regional and Town Planning  and Development Act, 1995 (Punjab Act 11 of 
1995). 
(10) The promoter shall construct or get constructe d at his own cost, schools, hospitals, parks, 
community centers and other community buildings, on  the land set apart for this purpose or promoter 
may sell or transfer land meant for schools and hos pital etc. on such terms and conditions, as may be 
specified by the Government. Further, the area unde r roads, open spaces, parks and other public 
utilities shall be transferred to the local authority before issue of completion certificate. 
(11) The promoter shall, reserve five percent area of the gross project area in the case of colony and  
ten percent of the apartments in the case of apartm ents in the manner, as may be specified by the 
Government for reservation and disposal of such plo ts/apartments for economically weaker section of 
the society. 
(12) The promoter shall carry out all directions is sued by the competent authority for ensuring due 
compliance of the execution of the layout and the d evelopment works therein and to permit the 
competent authority or any officer authorized by it to inspect such execution. 
(13) The promoter shall be responsible for the main tenance and upkeep of all roads, open spaces, 
public parks and public health services for a perio d of five years from the date of issue of completio n 
certificate or till the date of transfer the same, free of cost to the State Government or the local 
authority: 
Provided that after the completion of development w orks in the colony, in all respects, the competent 
authority, may allow the promoter to hand over the maintenance of the infrastructure and services 
mentioned in this sub-section to an association of residents formed under section 17-A, which shall be 
responsible for management, maintenance, upkeep of common areas, infrastructure and common 
services of the colony. 
(14) In the event of the promoter contravening any provisions of this Act, or rules made thereunder or  
any conditions of the licence granted under sub-sec tion (3), the competent authority may, after giving  
an opportunity of being heard, suspend or cancel th e licence and enforce the bank guarantee or 
mortgage property furnished by the promoter under subsection (3). 
(15) When a licence is suspended or cancelled under  sub-section (14), the competent authority may 
itself carry out or cause to be carried out the dev elopment works, and after adjusting the amount 
received as a result of enforcement of bank guarant ee or by disposal of mortgaged property, recover 
such charges, as the competent authority may have t o incur on the said development works from the 
promoter and the allottees in the manner prescribed as arrears of land revenue. 
(16) The liability of the promoter for payment of d evelopment charges referred to in sub-section (15),  
shall not exceed the amount the promoter has actual ly recovered from the allottees less the amount 
actually spent on such development works, and that of the allottees shall not exceed the amount, 
which they would have to pay to the promoter toward s the expenses of the said development works 
under the terms and conditions of the agreement of the sale or transfer entered into between them: 
Provided that the competent authority may, recover from the allottees with their consent, an amount in  
excess or what may be admissible under the aforesaid terms of agreement of sale or transfer. 
(17) Notwithstanding anything contained in this Act , after development works have been carried out 
under sub-section (15), the competent authority may , with a view to enabling the promoter, to transfer  
the possession of, and the title of, the land to th e allottees within a specified time, authorize the 
promoter by an order to receive the balance amount,  if any, due from the allottees after adjustment of  
the amount which may have been recovered by the com petent authority towards the cost of the 
development works and also transfer the possession of, and the title of, the land to the allottees wit hin 
aforesaid time and if the promoter fails to do so, the competent authority shall on behalf of the 
promoter transfer the possession of, and title of, the land to the allottees on receipt of the amount 
which was due from them. 
(18) After meeting the expenses on development work s under subsection (15), the balance amount 
shall be payable to the promoter.] 
 
6. Contents of agreement of sale. -  (1) Notwithstanding anything contained in any othe r law for the 
time being in force, a promoter who intends to cons truct or constructs a building of apartments, all o r 
some of which are to be taken or are taken on owner ship basis, or who intends to offer for sale plots 
in a colony, shall, before he accepts any sum of mo ney as advance payment or deposit, which shall 
not be more than twenty five per cent of the sale p rice, enter into a written agreement for sale with 
each of such persons who are to take or have taken such apartments, or plots, as the case may be, 
and the agreement shall be in the prescribed form t ogether with prescribed documents and shall be 
registered under the Registration Act, 1908 (Central Act No. 16 of 1908) : 
Provided that, if only a refundable application fee is collected from the applicant before draw of lot s for 
allotment, such agreement will be required only after such draw of lots. 
 
(2) The promoter shall not cancel unilaterally the agreement of sale entered into under sub-section (1 ) 
and if he has sufficient cause to cancel it, he sha ll give due notice to the other parties to the 
agreement and tender a refund of the full amount co llected together with interest at the rate as may 
be prescribed. 
(3) The agreement to be prescribed under sub-sectio n (1) shall contain inter alia the particulars as 
hereunder specified in clause (a) in respect of apa rtments and as specified in clause (b) in respect o f 
plots in a colony and to such agreement shall be at tached the copies of the documents specified in 
clause (c),- 
(a) the particulars in the case of apartment,- 
(i) if the building is to be constructed, the liabi lity of the promoter to construct the building 
according to the plans and specifications approved by the authority which is required so 
to do under any law for the time being in force; 
(ii) the date by which the possession of the apartment is to be handed over to the allottee; 
(iii) the area of the apartment including the area of the balconies which should be shown 
separately; 
(iv) the price of the apartment including the propo rtionate price of the common areas and 
facilities which should be shown separately, to be paid by the allottee of the apartment 
and the intervals at which the instalments thereof may be paid; 
(v) the precise nature of the association to be con stituted of the persons who have taken or 
are to take the apartments; 
(vi) the nature, extent and description of the comm on areas and facilities and the limited 
common areas and facilities, if any; 
(vii) the percentage of undivided interest in the c ommon areas and facilities and in the 
limited common areas and facilities, if any, appert aining to the apartment agreed to be 
sold, such percentage shall be the ratio of the bui lt-up area of the apartment to the total 
built-up area of all the apartments; 
(viii) the statement of the use for which the apart ment is intended and restrictions on its 
use, if any; 
(b) particulars in the case of plots in a colony,- 
(i) the date by which the possession of the plot is to be handed over to allottee; 
(ii) the area and price of the plot; and 
(iii) the statement of the use for which the plot is intended and restriction on its use, it any; 
(c) the copies of documents to be attached with the agreement,- 
(i) the certificate by [officer not below the rank of Assistant Collector Grade-II] referred to in 
clause (a) of sub-section (2) of section 3; 
(ii) certified copy from any relevant revenue recor d showing the nature of the title of the 
promoter to the plot or the land on which the build ing of apartments is constructed or is 
to be constructed;  
(iii) the plans and specifications of the apartment  as approved by the authority which is 
required so to do under any law for the time being in force [; and] 
[(iv) copy of the approved layout plan of colony.] 
7. Registration of agreements of sale.  - (1) Any agreement of sale entered into under the  sub-
section (1) of section 6 shall be presented for reg istration under the Registration Act, 1908, (Centra l 
Act No. 16 of 1908), by the promoter or by any othe r person competent to do so at the proper 
registration office and execution thereof shall be admitted by the person executing the document or 
his representative, assignee or agent. 
(2) Where any agreement of sale is entered into or is purported to be entered into at any time before 
the commencement of this Act, such document may be presented for registration at the proper 
registration office and its execution may be admitt ed by any of the persons concerned within six 
months of the commencement of this Act, and the reg istering officer shall accept such document for 
registration and register it as if it was presented and its execution admitted within time. 
(3) On presenting a document for registration under  sub-section (2), if the person executing such 
document or his representative, assignee or agent d oes not appear before the registering officer and 
admit the execution of the document, the registerin g officer shall cause a summons to be issued 
requiring the executant to appear at the registrati on office either in person or by duly authorised ag ent 
on a date fixed in the summons and if the executant  fails to appear in compliance with the summons 
so issued, the execution of the document shall be d eemed to be admitted by him and the registering 
officer may proceed to register the document accord ingly and if the executant appears before the 
registering officer but denies execution of the doc ument, the registering officer shall, after giving him a 
reasonable opportunity of being heard, if satisfied  that the document has been executed by him, 
proceed to register the document accordingly. 
 
8. Effect of non-registration of agreement.  - Where may agreement for sale entered into under sub-
section (1) of section 6, whether entered into befo re or after the commencement of this Act, remains 
unregistered for any reason, then notwithstanding a nything contained in any law for the time being in 
force, or in any judgement, decree or order of any court, it may be received as evidence of a contract  
in a suit for specific performance under Chapter II of the Specific Relief Act, 1963 (Central Act No. 47  
1. Substituted vide Punjab Act No. 21 of 2014 w.e.f 27.8.2014 
2. ‘and’ omitted vide ibid. 
3. Word ‘ánd’ added vide ibid. 
4. Added vide ibid. 
of 1963), or as evidence, of part performance of a contract for the purposes of section 53A of the 
Transfer of Property Act, 1882, (Central Act No. IV  of 1882), or as evidence of any collateral 
transaction not required to be effected by registered instrument. 
 
[9. Accounts of sums taken by promoters.  - The promoter shall maintain a separate account i n any 
scheduled bank of sums taken by him from persons in tending to take or who have taken apartments 
or plots, as advance, towards sale price or for any  other purpose, or, deposit, including any sum so 
taken towards the share capital for the formation o f a co-operative society or a company, or towards 
the outgoings (including ground rent, if any, munic ipal or other local taxes, charges for water or 
electricity, revenue assessment, interest on mortgages or other encumbrances, if any, stamp duty and 
registration fee for the agreement of sale and the conveyance); and the promoter shall hold the said 
moneys for the purposes for which they were given a nd shall disburse the moneys for those purposes 
including for the construction of apartments and, i n the case of colonies, for meeting the cost of 
development works, and shall submit quarterly state ment to the competent authority making full and 
true disclosure of all transactions in respect of t hat account and may utilize not more than fifty per cent 
for any other purpose from the amounts so collected.] 
 
10. Responsibility for outgoings till transfer.  - A promoter shall, while he is in possession, and , 
where he collects from persons who have taken or ar e to take apartments or plots, sums for the 
payment of outgoings, even thereafter, pay all outg oings (including ground rent, municipal or other 
local taxes, charges for water or electricity, reve nue assessment, interest on mortgages or other 
encumbrances, if any) until he transfers the proper ty to the persons taking over the apartments or 
plots, where any promoter fails to pay all or any o f the outgoings collected by him from the persons 
who have taken over or are to take over apartments or plots, before transferring the property to the 
persons taking over the apartments or plots, the pr omoter shall continue to be liable, even after the 
transfer of the property, to pay such outgoings and  penal charges, if any, to the authority or person to 
whom they are payable and be responsible for any le gal proceedings which may be taken therefor by 
such authority or person. 
 
11. No alterations, rectification of defects.  - (1) After the plans and specifications of the bu ilding as 
approved by the authority which is required so to d o under any law are disclosed or furnished to the 
person who agrees to take an apartment, the promoter shall; 
(i) not make any alterations in the structures desc ribed therein in respect of such apartment, 
without the previous consent of that person; or 
(ii) not make any other alterations in, or addition s to the structure of the building or construct any  
additional structures, without the previous consent  of all the persons who have agreed to take 
apartments in such building. 
(2) Subject to the provisions of sub-section (1), t he building shall be constructed and completed in 
accordance with the plans and specifications afores aid; and if any defect in the building or material 
used, or if any unauthorised change in the construc tion is brought to the notice of the promoter withi n 
a period of two years from the date of handing over  possession, it shall wherever possible be rectifie d 
by the promoter without further charge to the perso ns who have agreed to take the apartments, and in 
other cases such persons shall be entitled to recei ve reasonable compensation for such defects or 
change and where there is a dispute as regards any defect in the building or material used or any 
unauthorised change in the construction, or as to w hether it is reasonably possible for the promoter t o 
rectify any such defect or change, or as regards th e amount of reasonable compensation payable in 
respect of any such defect or change which cannot b e or is not rectified by the promoter, the matter 
shall, on payment of such fee as may be prescribed and within a period of three years from the date 
of handing over possession, be referred for decisio n to the competent authority and the competent 
authority shall, after giving an opportunity of bei ng heard to the parties and after making further 
enquiry, if any, as it may deem fit, record its decision and the decision so recorded shall be final. 
12. Refund of amount.  - If the promoter,- 
(a) fails to give possession, in accordance with th e terms of his agreement, of a plot or an 
apartment duly completed by the date specified, or any further date agreed to by the parties; or 
(b) for reasons beyond his control and of his agent s, is unable to give possession of the plot or 
the apartment by the date specified, or the further  agreed date; the promoter shall be liable on 
demand, but without prejudice to any other remedies  to which he may be liable, to refund the 
amounts already received by him in respect of that plot or apartments with simple interest at 
the rate as may be determined by the competent auth ority from the date the promoter received 
the sums till the date the amounts and interest the reon is refunded, and the amounts and the 
interest shall be a charge on the land on which a p lot it to be developed, or a building is or was 
to be constructed and the construction, if any, the reon shall be subject to any prior 
encumbrances. 
13. No mortgage without consent.  - (1) No promoter shall, after he executes an agreement to sell 
any apartment or plot, mortgage or create a charge on such apartment or the land or the plot, without 
the previous consent of the person who takes or agrees to take such apartment or plot, and if any 
such mortgage or charge is made or created without such previous consent after the agreement 
referred to in section 6 is registered, it shall not affect the right and interest of such person. 
(2) If a promoter has executed an agreement of sale of an apartment or a plot with a person and has 
not yet received from him all the amounts agreed to be paid, the latter shall not mortgage or create a 
charge against such apartment or plot without the previous consent of the promoter : 
Provided that the promoter shall not withhold consent if the mortgage or charge is for the purpose of 
obtaining finance for the payment of amounts due to the promoter. 
 
14. Occupation and completion certificate.  - (1) It is the responsibility of the promoter, - 
(i) in the case of apartments, to obtain from the a uthority required to do so under any law 
completion and occupation certificates for the buil ding and if a promoter, within a reasonable 
time, after the construction of the building, does not apply for an occupation certificate from the 
aforesaid authority, the allottee of an apartment m ay apply for an occupation certificate from 
the said authority; and 
(ii) in the case of a colony, to obtain completion certificate from the competent authority to the 
effect that the development works have been complet ed in all respects as per terms and 
conditions of the licence granted to him under section 5. 
(2) The authority referred to in sub-section (1) shall, after satisfying itself about the agreement of sale 
between the promoter and the allottee, and the compliance of the building regulations and all other 
formalities, issue an occupation certificate: 
[Provided that the promoter shall transfer free of cost the area under roads, open spaces, parks and 
sites meant for public utilities to the local authority or development authority, as the case may be, and 
this transfer would be exempted from stamp duty and any cess applicable.] 
 
[15. Promoter to the execute documents.  - (1) After the occupation certificate is obtained under 
section 14, 

Excerpt shown. Open the full act in Lexace.

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