Skip to main content

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

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske

Rules as to delivery of goods

                             Rules as to delivery of goods Section 2(2) of Sale of Goods Act defines ‘delivery’ as a ‘voluntary transfer of possession from one person to another.’ Thus, if the transfer of goods is not voluntary and is taken by theft, by fraud, or by force, then there is no ‘delivery. Moreover, the ‘delivery’ should have the effect of putting the goods in possession of the buyer. The essence of the delivery is a voluntary transfer of possession of goods from one person to another. There is no delivery of goods where they are obtained at pistol point or theft. 1. Mode of Delivery: According to Section 33, delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf. Delivery of goods may be actual, symbolic or constructive. 2. Expenses of Delivery: According to Section 36(5), unless otherwise agree