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Blog / RM Reports

7 Things to know before signing the Builder – Buyer Agreement

by Anushree Ghosh

‘Dream Home’ is a term that holds a special place in our minds, as there are numerous factors that one considers before finalizing the place where one would like to spend a lot of time in the coming years. Therefore, it is important to ensure that everything runs smoothly till one gets the possession.

Many fraudulent builders entrap buyers in the legal hassle by making false claims. The builder-buyer agreement is an extremely significant document as it binds the buyer and the developer in a legal bond – both the parties become equally responsible to abide by the rules written in the agreement. If any of them don’t follow the written rules, then the matter can be taken to court.

Here are the guidelines for signing the builder-buyer agreement:

  1. Possession Deadline: The agreement must clearly mention the date on which the builder tends to deliver the possession of the house. If the deed mentions that it will be delivered within 60-90 days, then the buyer has the right to ask for a specific date.

  1. Price: The exact price must be mentioned in the agreement – the advance amount for booking the house, instalments and miscellaneous (if any). This will ensure that the builder does not impose any extra amount for anything that is not written in the agreement.

  1. Right to cancel the agreement: Buyer should have the right to cancel the deal, in the case where the developer violates any of the clauses mentioned in the agreement. For example, if the builder does not give the possession of the house to the buyer on the same date as mentioned before.

  1. Completion certificate: The respective municipal body gives a completion certificate to the builder and while handing over the possession of the house, the builder should provide the completion certificate also to the buyer.

  1. Major Checkpoints: The exact carpet area, the actual size of the house, and the super built-up area must be mentioned in the agreement.

  1. Dispute Related Clause: Check for dispute resolution clause so that the buyer can approach the right place in case he/she wants to file a case. Also, the agreement should describe the amenities that the buyer can ask from the developer in case of a dispute.

  1. No Change in The Building Plans: the agreement should clearly mention that the developer cannot change the building’s layout without the knowledge of the buyer. This clause will save the buyer from any unwanted changes in the plan which can ruin the perfect picture of his/her dream home.

It is important that buyers understand the guidelines of the agreement and negotiate the points that are inclined towards the developer’s side.

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