BUILDER’S AGREEMENT

BUILDER’S AGREEMENT

The Builder’s Agreement (BA) we are concerned is the Agreement the Buyer of a Flat sign with the Builder or Promoter to sell the flat to him. 
 
It is the most important document covering all aspects of the transaction and should be carefully studied before signing. A correctly worded BA will give no room for doubts and go a long way in peaceful and happy enjoyment of the property in the future.
No construction activity could begin without the plan being approved by the concerned authorities, and the Approved Plan should form part of the BA.

The BA should contain the following essential details

The Carpetarea, the Plinth area and the Super built up area.: The Carpet area as the name suggests is the area inside the flat. The Plinth area or the built up area is the Area of the walls and balcony added to the Carpet area. When common areas like the lobby, staircase, lift room, swimming pool, etc. are added, it becomes  the Super Built up area. You are going to pay for the Super built up area, and it must be clearly mentioned in the agreement along with the breakup  under each head.

The area of the undivided land that is the Undivided Share of Land (UDS) associated with your flat.

All specifications/ facilities that are agreed to be provided to the flats.
The common facilities that are offered in the complex.
Total value of the flat, the payment mode and the stages of payment. The final handing over date.
 
Compensation or damages the Builder should pay in the event of their inability to adhere to schedule.
 
Undertaking from the Builder to give the Completion Certificate from CMDA as and when the building is complete as per plan
 
Undertaking to hand over all the original documents to the society once the Building is complete and the Association of flat owners was formed.
 
A clause on the payment of all taxes and other dues to the governments and maintaining the building by the Builder till it is handed over to the Association.
 
Full details of any additional facilities/work that the builder has agreed to give in your apartment for which you have been charged extra.
 
Car Parking:  It is laid down in various judgments that the builder cannot sell the Car Parking area separately to any apartment. If the builder is charging separately for this facility that means they are increasing the overall rate.
Escalation Clause: Builders would try to include this clause in the BA as the prices of construction materials are fluctuating. It is better to resist to including this clause. It depends upon your bargaining strength.
 
Ensure while taking over that the flat, that  it is in order in all respects as per the agreement . Any violation should be rectified at the initial stage itself. If, however, any dispute is there, then it must be recorded it at the earliest.
 
CMDA’s Guide 
The CMDA has on its website, advised the buyers about the points that are to be taken care of while buying a flat. We reproduce them below for the benefit of readers.

Points To Be Considered Before Buying A Flat 

Save Your Hard Earned Money

 Check whether the details of approved plan have been displayed on the site.
Check whether the flat has been constructed as per the Approved Plan.
Check whether the Promoter/Power of Attorney has a right to transfer the Undivided Shares of land.
Verify whether entire Undivided Shares of land have been transferred by the land owner/Promoter/Power of Attorney to you.
Land owner/promoter/Power of Attorney has no right over the open spaces and in the terrace after entire Undivided Shares of land has been transferred.
Check whether the Completion Certificate issued by the CMDA has been obtained after the completion of the building.
If you have any further clarifications regarding the purchase of flat, kindly contact the counselling counter at CMDA.

Now, registration of Builders Agreement (Construction Agreement) made compulsory in Tamilnadu. Click HERE for details .

By John das

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