{"id":1819,"date":"2020-01-16T05:19:04","date_gmt":"2020-01-16T05:19:04","guid":{"rendered":"https:\/\/www.lawyersonia.com\/?p=1819"},"modified":"2020-01-16T05:19:04","modified_gmt":"2020-01-16T05:19:04","slug":"7-essentials-of-a-builder-buyer-agreement-you-should-know","status":"publish","type":"post","link":"https:\/\/zinavo-clientupdates.in\/raja\/lawyer\/7-essentials-of-a-builder-buyer-agreement-you-should-know\/","title":{"rendered":"7 Essentials of a Builder \u2013 Buyer Agreement You Should Know"},"content":{"rendered":"
Home<\/a>\"\"Blog<\/a>\"\"7 Essentials of a Builder Buyer Agreement You Should Know<\/h5>\n

<\/p>\n

A builder-buyer agreement is a legal contract between a real estate developer and a buyer of a property. It sets out the terms and conditions of the purchase and sale of the property, including the price, payment terms, possession, and delivery date. The agreement also includes details about the property’s construction, specifications, amenities, and the developer’s obligations, among other things. Here are some of the essentials of a builder-buyer agreement:<\/span><\/p>\n

    \n
  1. \n

    Parties involved<\/b><\/span>: The agreement must clearly mention the names and addresses of the developer and the buyer. It should also state the property’s details, such as the location, dimensions, and land use.<\/span><\/p>\n<\/li>\n<\/ol>\n

      \n
    1. \n

      Property details<\/b><\/span>: The agreement should contain a detailed description of the property, including the construction specifications, amenities, fixtures, fittings, and finishes. The developer must provide this information to the buyer before the agreement is signed.<\/span><\/p>\n<\/li>\n<\/ol>\n

        \n
      1. \n

        Payment terms<\/b><\/span>: The agreement must state the purchase price and the payment terms, including the instalment schedule, the amount of each instalment, and the interest rate charged on any outstanding amount.<\/span><\/p>\n<\/li>\n<\/ol>\n

          \n
        1. \n

          Possession and delivery date<\/b><\/span>: The agreement should specify the possession and delivery date of the property. The developer should hand over the property to the buyer on or before the delivery date mentioned in the agreement.<\/span><\/p>\n<\/li>\n<\/ol>\n

            \n
          1. \n

            Developer’s obligations<\/b><\/span>: The agreement must include the developer’s obligations, such as the construction of the property in accordance with the specifications mentioned in the agreement. The developer should also obtain all necessary approvals and permits from the local authorities.<\/span><\/p>\n<\/li>\n<\/ol>\n

              \n
            1. \n

              Buyer’s obligations<\/b><\/span>: The agreement should state the buyer’s obligations, such as the payment of the purchase price and the maintenance of the property after possession.<\/span><\/p>\n<\/li>\n<\/ol>\n

                \n
              1. \n

                Dispute resolution<\/b><\/span>: The agreement should include a dispute resolution mechanism in case of any disputes between the developer and the buyer. This can be through arbitration, mediation, or court litigation.<\/span><\/p>\n<\/li>\n<\/ol>\n

                One case that highlights the importance of a builder-buyer agreement is Pioneer Urban Land and Infrastructure Ltd. vs. Govindan Raghavan (2019). In this case, the developer failed to hand over possession of the property to the buyer within the agreed timeframe. The buyer filed a complaint with the National Consumer Disputes Redressal Commission (NCDRC) and sought compensation for the delay.<\/span><\/p>\n

                The NCDRC ruled in favour of the buyer and ordered the developer to pay compensation for the delay. The court also stated that the builder-buyer agreement is a sacrosanct document and must be adhered to strictly. The court emphasized the need for developers to fulfil their obligations under the agreement and deliver the property to the buyer within the agreed timeframe.<\/span><\/p>\n

                In Lucknow Development Authority v. M.K. Gupta,2 this Court held that when a person hires the services of a builder, or a contractor, for the construction of a house or a flat, and the same is for a consideration, it is a \u201cservice\u201d as defined by Section 2 (o) of the Consumer Protection Act, 1986. <\/span><\/p>\n

                The inordinate delay in handing over possession of the flat clearly amounts to deficiency of service. In Fortune Infrastructure & Anr. v. Trevor D\u2019Lima & Ors., the Court held that a person cannot be made to wait indefinitely for possession of the flat allotted to him, and is entitled to seek refund of the amount paid by him, along with compensation.<\/span><\/p>\n

                Conclusion<\/b><\/span><\/p>\n

                In conclusion, a builder-buyer agreement is a crucial document that outlines the terms and conditions of the purchase and sale of a property. It protects the interests of both the developer and the buyer and ensures that the transaction is carried out smoothly. It is essential for both parties to carefully review and understand the terms of the agreement before signing it.<\/span><\/p>\n

                Feel free to write to us at <\/span>mail@lawyersonia.com<\/span><\/a><\/u><\/span> or call <\/span>+91 9845944896 <\/b><\/span>if you wish to consult or discuss your matter. \u201cSonia and Partners\u201d is a Boutique law firm led by Adv. Sonia Rajesh supported by a team of qualified and among the Best Lawyers in Bangalore practicing in the area of Family Law, Property Law, and Criminal defence serving Citizens of India, Overseas Indians, NRIs and Global International Clients.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                A builder-buyer agreement is a legal contract between a real estate developer and a buyer of a property. It sets out the terms and conditions of the purchase and sale of the property, including the price, payment terms, possession, and delivery date. The agreement also includes details about the property’s construction, specifications, amenities, and the developer’s obligations, among other things. Here are some of the essentials of a builder-buyer agreement..<\/p>\n","protected":false},"author":2,"featured_media":1820,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[24],"tags":[],"class_list":["post-1819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-law"],"yoast_head":"\n7 Essentials of a Builder \u2013 Buyer Agreement You Should Know - Lawyer Sonia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lawyersonia.com\/7-essentials-of-a-builder-buyer-agreement-you-should-know\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"7 Essentials of a Builder \u2013 Buyer Agreement You Should Know - Lawyer Sonia\" \/>\n<meta property=\"og:description\" content=\"A builder-buyer agreement is a legal contract between a real estate developer and a buyer of a property. 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