5 Things To Check In The Builder-Buyer Agreement

-

 Purchasing a property is quite a big decision. It takes months or even years in some cases to find your dream house. After an extensive market survey and bargaining when you finally manage to seal the deal, remember to go through the sale agreement carefully before signing on the dotted line. Once signed you will be bound by the agreement and you will not be able to counter anything on it. It is pertinent to note here that sale agreement is not a standard contract and there might be some clauses that can land you in trouble, hence it is advisable to scrutinize the agreement minutely.


There are a number of complaints against fraudulent sellers who delay in delivering the possession or commence the project without obtaining the requisite approvals. Here are the five most important things that every buyer should look for in his builder-buyer agreement-


Connect with an expert lawyer for your legal issue


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 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.


Consult: Top Property Lawyers in India


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.


Related Article : Action against Builder for Delayed Possession


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 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.


Connect with an expert lawyer for your legal issue


It is advisable to get your sale deed reviewed by a lawyer experienced in real estate transactions to protect yourself from any sort of delay in delivery of your property or any other legal hassles. 

Comments

Post a Comment

Popular posts from this blog

INCOME TAX SECTION 32AD - Investment in new plant or machinery in notified backward areas in certain States

-
 Description (1) Where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new asset for the assessment year relevant to the previous year in which such new asset is installed. (2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii)or cla
Read more

INCOME TAX SECTION 35D - Amortisation of certain preliminary expenses

-
 Description (1) Where an assessee, being an Indian company or a person (other than a company) who is resident in India, incurs, after the 31st day of March, 1970, any expenditure specified in sub-section (2),- (i) before the commencement of his business, or (ii) after the commencement of his business, in connection with the extension of his undertaking or in connection with his setting up a new unit, the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of an amount equal to one-tenth of such expenditure for each of the ten successive previous years beginning with the previous year in which the business commences or, as the case may be, the previous year in which the extension of the undertaking is completed or the new unit commences production or operation : Provided that where an assessee incurs after the 31st day of March, 1998, any expenditure specified in sub-section (2), the provisions of this sub-section shall have effect a
Read more