…And while most of us do read them quite carefully,
seldom to we really understand what the consequences of agreeing to certain
terms can be! Here is where we can help.
Read on…
1. The builder
/ owner assumes your signing the allotment letter, as a fact testifying that
you (the purchaser /buyer) have read each clause carefully, analyzed the legal
implications and fully understand your as well as the company's obligations and
liabilities.
This means you have read everything and understand
everything; which is not the case many times! It is advisable to consult a
legal expert before signing any such document. Negotiate hard and work on your
terms.
2. If you
(the purchaser / buyer) fail to execute and deliver to the company the signed
allotment letter in its original form within 30 days of booking the property, your
application shall be cancelled and any deposit will be forfeited without any
notice or reminder.
This means, you have every right to refuse to sign an
agreement after applying even when you receive a copy and ask for a refund of
the deposit money. However, you may forfeit the booking amount paid with the
application if you haven't taken note of this clause in the application form.
3. The purchaser
/ buyer has seen and accepted the plan, design and specifications of the
property which is tentative and subject to approval by the authorities. It will
not be necessary for the developer / builder to seek the purchaser’s / buyer’s
consent for any changes made in the design or layout plan in order to comply
with the government's directions.
This is one of the most dangerous things to sign without
reading. This means you fully understand that layout and design plans are
subject to alteration extreme modification without your knowledge. This clause
is exceptional only if you purchase after the clearances.
4. The purchaser
/ buyer is aware of the various approvals, licenses, ownership records and all
other documents related to the land title and rights of the developer. The
purchaser or buyer agrees that there shall be no further investigation or
objection for the same.
This means that you have received and verified all the
legal documents for the project and all your queries have been addressed. For new projects dealing directly with
builders, you can check with the concerned nationalized bank which they have
tied up with for authenticity on this matter.
5. The
super built-up area (total area of your apartment along with your share of
common areas such as lobbies, corridors, service areas, staircases and lifts)
mentioned in the agreement is tentative and subject to change during
construction. The cost of the property is re-calculated after confirmation of
the super area. If there is an increase, the buyer will have to pay the
increased price on demand. If there is a reduction, the refund will be adjusted
in the final installment. In both cases, no interest is payable.
Though builders try to stick to the plan, you must be
prepared for a 25 % - 35 % variation in area during construction. If the area
of your property rises, so will the cost. You must keep some extra money for
this. This also stands true for construction and material costs.
6. If
the project is delayed due to non-availability of materials or water/power,
strike, dispute with construction agencies, civil commotion, war, natural
disaster or notification by any competent authority or any reason beyond the
control of the developer, the delivery of the flat will be extended by a
reasonable time. If the developer abandons the project for any reason beyond its
control, its liability will be limited to refunding the amount paid by the purchaser
/ buyer.
If the builder can invoke this “force majeure” clause,
you have very limited options. It would be best to consult a legal expert for
proper guidance!
Be cautious, be alert!
** With inputs from Real Estate Business Today
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