Before Signing the Buyer Agreement

Aug 27, 2011     Posted under: Investment

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Go Through The Document Carefully: Homebuyers should carefully go through all clauses of the agreement before signing on the dotted line. Buyers should also be open to negotiating key terms with the developer.

What is penalty? Buyers should also check for penalties in case they wish to terminate the agreement. Forfeiture charges in such cases could be quite high, usually ranging from 15% to 20% of the total sale consideration.

What is the date of delivery? Ask for the exact date/month of completion at the time of signing the builder-buyer agreement and ensure that is mentioned in the agreement

Opt for a construction-linked plan: Buyers should opt for construction-linked payment plans where installments are payable according to stage-wise completion of the project, if such plan is being offered by the developer

Redressal Mechanism: In case there is any breach of any term of the agreement or there are any clauses that may affect the consumer’s interest adversely, the consumer can approach the court.

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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