There are many things that you need to be aware of when you are buying a home. If you Are Planning to buy a property in Pune. The builder-buyer agreement is a very important legal document for home buyers. Safeguarding and upholding the rights of homebuyers is the primary motive of RERA or the Real Estate (Regulation And Development) Act, 2016. One of the measures under the RERA regime is the focus on a builder-buyer agreement between the homebuyer and the builder.
A builder-buyer agreement is a legal document that lays down the terms and stipulations regarding the sale of the property to take place between the homebuyer and builder. It is the most imperative legal document in a purchase of property as it can be used as evidence in case the builder fails to uphold his end on any count.
The builder-buyer agreement is fashioned in the manner of an Agreement to Sell and lays down the provisions relating to the property size, building layout delivery date, and construction standards. The agreement is signed by both the homebuyer and builder and serves as the official proof of the deal between them.
A builder buyer agreement must be drafted by a lawyer who holds experience in drafting legal documents for the sale and purchase of the property. However, the agreement must include the following provisions to provide blanket protection to both buyer and builder in case any of them breaches the agreement.
Timeline for Construction
The time period when the builder will deliver the flat possession to the buyer must be stated. A construction timeline specifies the time when the buyer will be getting possession of their property. This clause is important as it also establishes when the buyer will have the right to file a complaint against the builder for Delayed property possession.
The building layout must be included in the builder-buyer agreement as it can be used as evidence in case there arises a dispute regarding the change in the plan by the builder. The inclusion of building plans acts as their validation from both the builder and buyer when they sign the agreement.
The price to be paid by the buyer must be included in the agreement. This includes the booking amount paid, installments to be paid by the homebuyer. This ensures that the builder does not charge any extra amount at a later stage for raw material or additional charges for electricity connection, water connection, etc.
The buyer-builder agreement must also include a clause allowing the buyer to cancel their booking in case the builder violates any terms of agreement or delays in delivering the possession. This clause must also state that the buyer will be entitled to get a refund of the amount already paid along with interest.
Certificate for completion is issued by municipal authorities laying down that the completed house/flat/unit matches and complies with the approved plans. The builder-buyer contract must mention that the builder will be liable to provide the completion certificate when handing over the possession of the property.
Delay in Payment
The agreement must state the legal remedy that the builder can resort to in case the buyer causes a delay in the payment of installments. Usually, the clause only states that a certain percentage of interest would be levied in case the buyer causes a delay in payment. This provision also protects the buyers as the builder can only resort to the remedy laid down in the agreement and not go as far as to cancel the booking of the buyer.