If you’re a homebuyer on a limited budget, you’re probably looking to invest in under-construction projects. These projects are launched at competitive prices, at rates lower than typical property rates, allow flexible payments, and even give the option of customising the property once it is built.

However, such under-construction projects are often subject to delays in construction. And this could mean that your funds could get stuck in unfinished projects.

Thanks to the Builder Buyer Agreement, you can be assured that your rights as a homebuyer are protected. You can also ensure that the delivery of the project you invest in complies with the agreed terms. Here’s everything you must know about the agreement.

  • What is the Builder Buyer Agreement?

In simple terms, the Builder Buyer Agreement (BBA) is an “Agreement for Sale” of the property in question. It is an agreement between the builder and buyer that outlines the transfer process and the project’s delivery date. It also includes approvals, terms and conditions, annexures, flat layouts, and more, as agreed upon by both parties.

Since the agreement between the builder and the buyer is a legal document, you must rigorously check it to ensure that the terms are clear and that there are no loopholes. Here’s how you can go about it.

  • Pointers to check before signing the Builder Buyer Agreement
  • Personal details

Ensure that your personal details, i.e., name, address, Aadhar card, and Pan card information, are correct before signing the agreement. This will help you avoid the hassles of correcting the document later.

  • Documents

Check if you have the necessary documents before signing the agreement. This includes the Commencement Certificate (CC), Fire NOC, Occupancy Certificate (OC), building plan sanctions from the RERA, and Municipal approvals.

  • Encumbrances

Ensure that the property in question has no encumbrances by asking for the Encumbrances Certificate beforehand. Since the certificate contains the instances of loans taken against the property previously, you can ensure there are no running loans.

  • Legal action on non-abidance of agreement

Make sure the agreement lays down the legal action to be taken if one of the parties fails to abide by the terms of the contract. This allows any action to be taken promptly.

While the BBA must include all the above information, there is no specified format for it. So, what is the Builder Buyer Agreement Process? How does one draft it?

  • Process of Drafting a Builder Buyer Agreement

As per the RERA Act, every clause and condition should be spelled out clearly in the BBA. And the best way to draft one is with the help of a lawyer.

Seek a property lawyer with experience drafting clauses and subclauses in property contracts. Also, submit a copy of various BBA agreements under different RERA authorities.

Going this extra mile ensures that the Builder Buyer Agreement process is smooth and hassle-free.

Following the above steps ensures that you draft a foolproof BBA that protects your interests as a buyer and that the Builder Buyer Agreement Process is convenient.

Looking to secure additional financing for purchasing that under-construction project in the meanwhile? Get a home loan from Tata Capital! Visit our website for more details on our loan terms. Apply online today.

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