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Here’s a checklist of the top points to review in your BBA to ensure a smooth and secure home-buying experience.
Make sure to seek legal advice before signing the agreement to avoid any pitfalls. (Representative image)
Purchasing a flat is a significant financial decision, and ensuring that the builder-buyer agreement is clear, comprehensive, and legally sound is crucial to protect your investment. This agreement outlines the terms and conditions of the transaction, including payment schedules, delivery timelines, property specifications, and the responsibilities of both parties. Before signing on the dotted line, it’s important to carefully examine key clauses in the agreement to avoid future disputes or misunderstandings.
Here’s a checklist of the top points to review in your builder-buyer agreement to ensure a smooth and secure home-buying experience.
1. Project Details
Project Name and Address: Ensure the details of the flat and the project are clearly mentioned, including the complete address and specific flat number.
Size and Carpet Area: Verify the carpet area, super built-up area, and any common areas.
Completion Date: Check the expected possession date. Also, confirm the penalties or compensation if there’s a delay in possession.
2. Payment Schedule
Payment Plan: Ensure the payment plan is clear, including the advance, instalment breakdown, and due dates.
Escalation Clauses: Check for clauses that may allow the builder to increase the price after signing the agreement.
3. Title and Ownership
Land Title: Verify the builder’s title to the land and ensure there are no legal disputes or encumbrances.
Permissions: Ensure that the builder has all the necessary approvals, including from local authorities, RERA registration, and environmental clearance.
4. Specifications of the Flat
Construction Materials and Fixtures: Get detailed specifications on the materials used in the construction, including flooring, fittings, and electrical fixtures.
Quality Checks: Confirm if the builder is following quality standards and whether any warranties are provided for materials or equipment.
5. Possession and Handover Process
Possession Procedure: Understand the process of taking possession, including handing over of keys, installation of utilities, and any formalities.
Maintenance Period: Check for a defined period during which the builder is responsible for maintenance or repairs after possession.
6. Defects Liability Period
Defects Clause: Ensure a provision is included for repairs or rectifications if there are any defects in the construction or fittings within a specific period after possession.
7. Change in Layout
Modification Clause: Understand the clause around changes to the original design, structure, or layout. Ensure that the builder cannot make significant changes without your consent.
8. RERA Compliance
RERA Registration: Verify that the project is RERA-registered. The agreement should mention the registration number, and the builder should provide RERA documents.
Delay Penalty: Ensure that a penalty clause for delay in possession (as per RERA guidelines) is included.
9. Stamp Duty and Registration
Stamp Duty Clause: Verify who will bear the stamp duty and registration costs—usually, it’s the buyer, but the terms should be clear.
Registration of Sale Deed: Ensure that the agreement mentions the process for the registration of the sale deed once the flat is ready for possession.
10. Amenities and Common Areas
Common Area Usage: Clarify the builder’s responsibilities regarding the maintenance of common areas like the lobby, lifts, and parking spaces.
Amenities: Check the amenities mentioned (gym, swimming pool, etc.) and confirm whether they are part of the final delivery or may incur extra costs.
11. Legal Jurisdiction
Dispute Resolution: Review the dispute resolution mechanism—whether it’s arbitration or judicial and in which court jurisdiction the disputes will be handled.
12. Additional Charges
Maintenance Fees: Understand the ongoing maintenance charges and whether they are applicable post-possession.
Development Charges: Check for any hidden charges for development or infrastructure costs.
13. Transfer of Ownership
Transfer Clause: Check if the agreement allows for the transfer of ownership in case you want to sell the property before the possession date.
14. Force Majeure Clause
Force Majeure: Ensure that the agreement includes a force majeure clause, which protects both parties in the event of unforeseeable circumstances (e.g., natural disasters, legal changes) that might delay the project.
15. Builder’s Liability
Insurance: Confirm whether the builder provides any insurance coverage during the construction phase.
Breach of Contract: Check the penalties for a builder’s failure to fulfil contract obligations.
Make sure to seek legal advice before signing the agreement to avoid any pitfalls. Having a lawyer review the terms can safeguard you from unforeseen issues later.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.
