Buying a flat is a major financial decision, and signing the builder agreement is a critical step. This document outlines the terms between you and the builder, safeguarding your interests. However, it often contains complex clauses that can be overlooked. Here’s a simple checklist to ensure you’re fully informed before signing on the dotted line.
1. Verify Project and Flat Details
Before signing, confirm that the agreement mentions:
- Project Name and Address: Ensure these details are accurate.
- Flat Details: Check your flat number, carpet area, and super built-up area.
- Possession Date: Look for the promised date of possession and ensure the agreement mentions compensation for delays.
2. Understand the Payment Terms
The payment schedule should clearly include:
- Advance Amount and Installments: Review the due dates for all payments.
- Price Escalation Clause: Check if the builder reserves the right to increase the flat price. Avoid agreements with vague conditions allowing price hikes.
3. Land Ownership and Legal Clearances
Ensure the builder legally owns the land. Request documents like:
- Land title papers to confirm ownership.
- Approvals for construction from local authorities.
Avoid projects where approvals are pending, as this can lead to legal issues later.
4. Flat Specifications: Know What You’re Paying For
The agreement must include:
- Materials and Fittings: Details of construction materials, flooring, and fixtures.
- Quality Standards: Clearly specified standards will help hold the builder accountable for promised quality.
5. Possession Process and Post-Handover Formalities
Review the possession process, including:
- Required formalities for taking possession of the flat.
- Maintenance terms post-possession, as repairs and upkeep are inevitable.
6. Changes in Layout or Design
Builders often modify layouts due to unforeseen circumstances. Ensure the agreement specifies:
- Permissible Changes: Limit changes to what is explicitly mentioned.
This safeguards against major alterations that could affect the flat’s usability or aesthetics.
7. RERA Registration Compliance
The Real Estate (Regulation and Development) Act (RERA) protects buyers. Ensure the project is:
- Registered with RERA: Verify the RERA number in the agreement.
- Builder’s Accountability: Registered builders must comply with RERA norms, and you can file complaints against them if needed.
8. Stamp Duty and Registration Costs
Clarify who will bear the cost of:
- Stamp Duty: Typically paid by the buyer.
- Registration Fees: Ensure these charges are transparently stated.
9. Common Areas and Amenities Responsibility
Check details about shared facilities such as:
- Maintenance Responsibility: Ensure the builder is accountable for maintaining lobbies, lifts, and parking areas.
- Amenities: Conditions related to access and upkeep of gyms, swimming pools, or gardens should be clearly stated.
10. Builder’s Liabilities and Insurance
Ensure the builder has insured the project during construction. This protects against:
- Damage or accidents during construction.
- Additional liabilities arising due to unforeseen issues.
Pro Tips for Buyers
A. Don’t Rush
Take your time to read the agreement thoroughly. If needed, consult a legal expert to decode complex clauses.
B. Seek Clarifications
Ask the builder to clarify any unclear terms or conditions.
C. Verify RERA Number Online
Visit the state RERA website to cross-check the builder’s claims.
D. Negotiate Terms
Don’t hesitate to request modifications to unfavorable clauses. Builders often accommodate reasonable requests to close the deal.
E. Keep Copies
Ensure you receive a signed copy of the agreement for future reference.
Buying a flat is a long-term commitment. By carefully reviewing these 10 points, you can avoid unpleasant surprises and ensure your home-buying journey is smooth.
