Section 16 : Obligations of promoter regarding insurance of real estate project - The Real Estate (Regulation and Development) Act, 2016

What is the Obligations of promoter regarding insurance of real estate project under section 16 of The Real Estate (Regulation and Development Act, 2016). Obligations of promoter regarding insurance of real estate project is defined under Section 16 of the Act. Provisions under Section 16 are:

Section 16 "Obligations of promoter regarding insurance of real estate project" - The Real Estate (Regulation and Development Act, 2016)

(1) The promoter shall obtain all such insurances as may be notified by the appropriate Government, including but not limited to insurance in respect of -

(i) title of the land and building as a part of the real estate project; and

(ii) construction of the real estate project.

(2) The promoter shall be liable to pay the premium and charges in respect of the insurance specified in sub-section (1) and shall pay the same before transferring the insurance to the association of the allottees.

(3) The insurance as specified under sub-section (1) shall stand transferred to the benefit of the allottee or the association of allottees, as the case may be, at the time of promoter entering into an agreement for sale with the allottee.

(4) On formation of the association of the allottees, all documents relating to the insurance specified under sub-section (1) shall be handed over to the association of the allottees.