A builder-buyer agreement is nothing but an ‘Agreement for Sale’. This document indemnifies that the said bought property is transferred on the buyer’s name and all the rights towards the same are transferred to new owner’s name subject to the mutually acceptable clauses mentioned in the agreement. It includes different annexures, approvals, flat layout, terms and conditions agreed between the builder and the buyer. In short, it is a legal file that put down all the important terms and conditions about the sale of property to take place amid the homebuyer and builder.
- Completion certificate– When the builder hands over the house to you, the builder also needs to provide you with a completion certificate. A completion certificate is issued by the municipal authorities stating that it complies with the approved plan. You need this certificate for the registration of your house and other government facilities. In case your agreement is silent upon the provision of a completion certificate ensure that there is a clause in your builder-buyer agreement which directs the builder to give you the completion certificate while handing over the house to you.
- Delivery of possession clause- Pay attention to the delivery of possession clause. For instance, if your agreement states that the builder of the apartment will offer possession of the apartment within 60-90 days from the start of construction, it does not state any fixed date for delivery of possession. The commencement of the construction is entirely the discretion of the builder. To save yourself from such anomalies ensure that the agreement provides a fixed date of the delivery of possession.
- Protection from any changes in the building plan- The developer cannot change the building’s plan without the written consent of the buyer. So a lot of developers take the buyer’s consent beforehand only. Look for this clause in the agreement and ensure that the builder takes your consent each time he plans to amend the building plan.
- Indemnity clause in the sale agreement- This clause is very crucial for the builder as it provides indemnity (security or protection against loss or financial burden) against any legal dispute or legal defect in the property. Ensure that the clause mentions that in the case of any legal dispute in the future the seller will compensate the buyer in case of any loss incurred by the buyer at then prevailing market rate.
- Right to opt-out of the agreement- As a buyer, you should have the right to call off the deal under certain circumstances without being penalized. For instance, if the buyer fails to provide the statutory documents required by the buyer or if the buyer finds any legal defects in the property before execution of the sale deed or any such situation.
The Builder Buyer Agreement is a key document which governs the terms and conditions of property sale and handover. However, as this is a legal document, the buyer must ensure the following factors-
The property buyer must ensure that the personal details such as name, father’s name, address, pan card and Aadhar card do not have any typos as correction of Builder Buyer Agreement is a tedious process.
In fact, a Builder Buyer Agreement is a document of greater importance for the buyer. Before signing the document, the buyer must read all the terms and conditions and ensure that all the necessary approvals are obtained by the builder. The homebuyer must ensure that documents such as Commencement Certificate (CC), Occupancy Certificate (OC), Fire NOC, Municipal approvals and building plan sanction from RERA before signing the BBA.
The buyer must ensure that there are no encumbrances on the concerned property. Encumbrances refer to the loan or mortgage taken against the property in question. The buyer can also ask for the ‘Encumbrances Certificate’. This certificate would enumerate the instances of loans taken and if there are any running loans against the property.
The buyer must ensure that the clause clearly mentions the action to be taken in cases of default by any party.
If the buyer is considering an under-construction property, he/she must ensure that the commitments made by the builder in the Builder Buyer Agreement are adhered to.
Despite the intervention of RERA, the Builder Buyer Agreement across India does not have a standard format. Builders kept adding clauses favouring the builders and made the document one-sided.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.
We do conduct several Courses, Quizs and Webinars, Click here to register
The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.
If you would also like to contribute to my website, then do share your articles or poems at firstname.lastname@example.org