Sound Agreement Between Buyer & Builder

After all the running around you have finally made up your mind and chosen your dream home. Do you think it is the end of your worries and it’s just a matter of time and you’ll soon sign the ‘sales agreement’ to become a proud home owner?

In reality post selection procedure is more crucial than the selection procedure. Are you wondering why and how? This is the stage where one actually has to pay and get away with his life savings.

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Rather than reading and analyzing the impact of each and every clause in the agreement or consulting a property lawyer, most of the time buyers simply sign it. They usually think it’s too long or they simply ignore it as the language is too technical or at times are overwhelmed about owning a house, and hence, fall in the trap. Developers take advantage of buyers’ ignorance and draft agreements which are highly developed based.

Here is a list of checkpoints that a buyer must keep a check before signing the sales agreement with the developer:

Firstly a sales agreement is a legal document which lists the terms and conditions of the transaction. These are agreed upon by the parties involved and bind the parties to fulfil their part of the commitment.

Most of the contracts have a clause stating that the given plans are tentative and therefore, there can be alterations in the final product. Also, the final price of the house is adjusted accordingly. There should always be a mention of the permissible extent of such changes.

Usually the builders sell on super built up area which includes the actual area of the house along with an unaccountable addition for common spaces. One should be careful and should make the developer include the details of carpet area and super area in the agreement. This also gives the buyer an account of the extra charges demanded with respect to alterations in the plans at a later stage.

Details of all the charges starting from the basic cost of the house to all the extra charges the buyer has to bear should be clearly mentioned. All the levied charges like utility charges, maintenance fees, club house membership charges, parking charges should be included in the agreement. There have been cases especially in Mumbai where developers have sold the parking to external parties even when as per the contract they belong to a resident of the society.

Another critical and must do point is registering the sales agreement to avoid litigation at a later stage. Being a legal document it helps in case of a fraud and creates a public record of your property. In case of any discrepancy a buyer should always go to the consumer court as they favor buyers. Also, buyers facing similar problems should collectively work on the issue to build up pressure on the developer and other concerned parties. Consumer forums and other social networking mediums are also strong in today’s time.

In the end, with the absence of any regulation defining real estate practices in India, it is a buyer’s duty to check the agreement before signing it. It is advisable to consult a lawyer and demand alterations in the agreement if required before formally signing it. It’s always best to do a check on builder’s track record. Above all, a sales agreement should always be registered.

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Tags : Tips for purchasing real estate property,things to keep in mind,Cosmic Projects,Cosmic Structures.