The builder-buyer agreement is an essential legal document for home buyers. It is termed as a contract which contains all the terms and conditions which have to be complied by both the buyer and the builder. Buyers need to read this document carefully as the T&C mentioned will help to ensure that your rights are protected and you get what you have paid for. This agreement can empower a home buyer to stand up for their rights at any legal or non-legal forum.
Builder-Buyer Agreements after RERA
After RERA was introduced, the agreement between the builder and buyer has to have all possible T&C clearly laid out in the agreement. All projects which are comes under registered RERA should mention the same. Both parties will now have to make sure that the agreement adheres to the regulations laid down by RERA and the project has to be registered under RERA as well.
The RERA section is 11 (4) which talks about the builder-buyer agreement.
Here are some of the major take-away for you:
- Builder will have complete responsibility for all the functions & obligations as described under RERA based on the sale agreement till the handover of possession to the buyer.
- The builder will have responsibility for any defects in the structure or other flaws for the period as stated in sub-section (3) in section 14. This responsibility will hold for this particular duration even after delivery of apartments/plots to customers.
- Buyers should check the RERA site and check the RERA registration no. for their project. All details of the same will be posted online and the document format is also given online.
- The agreement should be registered.
The agreement should ideally be scrutinized by a lawyer or real estate professional in order to stay on the safe side and safeguard the buyer from any clauses which may lead to issues in the future. The Builder-Buyer agreement is of prime importance since it gives you the right towards the housing unit/property that you are purchasing. You should check the compensation clauses for any delays and the place for filing complaints in case of any dispute.
Check the clauses for resolution of disputes with amenities & other specifications of your housing unit too. Check whether these are given to you when you get possession. The agreement will help you demand these amenities if the builder does not provide you the same. In case of any legal issue, the document will also help you work out your own legal rights to ask for something from the builder. Sign the agreement once you have carefully and properly check and read it.
These Points need to check in Builder-Buyer Agreement:-
Apart from the things mentioned above, here are the top things you should keep an eye on when checking your Builder-Buyer agreement:
Certificate of Completion- Whenever you get possession of your home, the developer has to give you the completion certificate for the same. This is given by the requisite authority which states that the housing unit adheres to the plan approved. This certificate is very important for registering your property and getting other facilities. The completion certificate provision should be there in your agreement. If it is not there, make sure that you get it inserted, that is the agreement should have a clause which makes it essential for the builder to give you the certificate of completion upon delivery of your housing unit.
Possession– Read the clauses for possession of your housing unit. In case the agreement has a clause that the delivery will be given within a particular duration, say 100 days from the beginning of construction without any fixed date, be very careful. Make sure that a fixed possession date is given in the agreement, after which the builder should pay you compensation.
Building Plan- Builders care not supposed to change the plans of any building without getting written approval from buyers. Check this kind of clause in the agreement and make sure that your builder asks for your consent every time he/she wishes to get the building plan changed.
Indemnity Clause- This is a vital aspect since it offers protection/security for the builder against any financial losses/burdens in case of any legal issue/dispute with the property. Make sure that there is the clause which says that in case of any such legal issues, the seller will be offering compensation to the buyer in case the latter has any loss raised due to the same.
Opting Out- The right to cancel the purchase deal should always be there with the homebuyer in specific situations without having to bear any penalty or any fines. Suppose the builder does not provide suitable documents that you need or there are any legal/title issues prior to the sale deed being executed. In such condition, buyers should have the right to cancel their deals. This should be mentioned very clear in the Builder-Buyer agreement.
The Builder-Buyer agreement is thus a mandatory legal document that not only should you thoroughly read and understand before signing, you should also get the help of experienced professional to check the same.