Do Not Miss Reading The Builder-Buyer Agreement | Sikka Realtors

The builder-buyer agreement is a legal document that is signed by both the builder and buyer. It is a very important document with regards to property dealings. The buyer must be aware of all the terms and conditions mentioned in this document so that if there is any breach of contract by the builder, the buyer is in position to revert back. Mentioned below are certain provisions which you must be aware of as a buyer:

Ø  Timeline Of Construction: As per this agreement the buyer is supposed to be given possession of the property within 36-42 months from the beginning of construction. You should note the difference between commencement of construction and date of booking and then calculate the time limit.

Ø  Alteration In Area: The builder might change the square footage of the property and if increased, extra amount is charged from the buyer. But the point to be noted here is that the change is in the super area and not in the carpet area. Why will you be paying 10% extra when the additional area is almost nil?

Ø  Increment In Price: This clause states that the builder may increase the cost of the property if there is delay in completing the project. They justify their point by stating that the costs of raw materials have gone up although the delay was totally their fault. The buyer is penalised here out of no reason.

Ø  Delay In Payment: The buyer is charged an interest of 18-24% if there is delay in paying an instalment. This clause also states that the builder has right to cancel the property right of the buyer if there is delay in payment beyond a point.

Ø  Change In Building Plans: This is a new clause that has come up which states that before making any changes in the setup plan, the builder must take the written consent of the buyer.

Ø  Transfer Charges: This amount is charged in case the property is resold before possession. Make sure this charge is known to you beforehand.

Ø Actual Cost Basis Payment: As per this clause certain items are to be paid on actual cost basis. The builder might charge a high amount at the time of giving possession. 

It is clear from the above discussion that almost all the clauses are inclined towards the builder. The consultancy provided by Sikka Realtors in this regard can help you to a great extent. We have established a very good position in Dwarka real estate and are associated in helping the buyers get the best property for sale in Dwarka. Our professional team is well known as the best property dealers in Dwarka.