Excited to finally buy your dream flat? Hold on! Before you get swept away with the vision of your new home, there’s a crucial step – the builder-buyer agreement (BBA). This contract holds the key to a smooth property purchase. When purchasing a house, it’s crucial to carefully review the agreement to ensure that your interests are protected.
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What Is A BBA And Things to Check In Builder Buyer Agreement
Builder-buyer agreement is the most common meaning and refers to a legal contract between a builder (seller) and a buyer purchasing a flat (apartment). It outlines the terms and conditions of the sale, including details about the property, payment schedule, possession date, and dispute resolution mechanisms. It’s vital to carefully review and understand the BBA before signing to protect your interests as a buyer.
What to check before buying a flat?
Let’s dive in and see what you, the buyer, need to watch out for. Here are some key things to check in the agreement:
- Project Details: Ensure that all the details regarding the project are accurately mentioned in the agreement, including the project name, location, size, and specifications of the flat.
- RERA Registration: Confirm the project is registered under RERA (Real Estate Regulation and Development Act).
- Other Approvals: Check for approvals like Commencement Certificate (CC), Occupancy Certificate (OC), and fire NOC.
- Payment Schedule: Check the payment schedule carefully to understand the instalment and due dates. Make sure there are no hidden charges or ambiguous clauses related to payments.
- Possession Date: The agreement should mention the expected date of possession. Look for clauses regarding penalties for delay in possession and conditions under which the possession date may be extended.
- Construction Quality and Specifications: Verify that the agreement includes details about the quality of construction materials to be used and specifications of fittings and fixtures in the flat.
- Amendments and Changes: Ensure that there is a clause specifying how any amendments or changes to the agreement will be communicated and documented.
- Legal Compliance and Approvals: Check if the project has received all necessary approvals and clearances from local authorities. Look for clauses related to legal compliance to avoid any future legal disputes. Check with local municipal authorities about the details of the builder.
- Cancellation and Refund Policy: Understand the conditions and procedure for cancellation of the agreement, as well as the refund policy in case of cancellation by either party.
- Maintenance Charges: Verify the maintenance charges mentioned in the agreement and understand what services and facilities they cover.
- Rights and Responsibilities: Review the rights and responsibilities of both the buyer and the builder mentioned in the agreement to ensure fairness and clarity.
- Dispute Resolution Mechanism: Look for clauses outlining the mechanism for resolving disputes, such as arbitration or mediation, to avoid lengthy legal battles in case of disagreements.
- Penalties and Compensation: Look for clauses specifying penalties or compensation in case of default by either party.
- Transfer of Ownership: Understand the process and conditions for the transfer of ownership, including any restrictions or charges involved.
- Parking and Common Areas: Ensure that the agreement clearly defines the rights and access to parking spaces and common areas within the project.
- Warranties and Guarantees: Check if the builder provides any warranties or guarantees for construction quality, fittings, or fixtures, and understand the terms and duration of such warranties.
It’s advisable to consult with a legal expert or real estate advisor to thoroughly review the builder-buyer agreement before signing to safeguard your interests.
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