The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect the interests of home buyers and regulate the real estate sector in India. One of the key aspects of RERA is the builder-buyer agreement, which lays down the terms and conditions of the transaction between the builder and the buyer.
The builder-buyer agreement is a legally binding document that governs the rights and obligations of both parties. As per RERA, certain clauses must be included in the agreement to ensure transparency and fairness in the transaction. Here are some of the key clauses that must be included in the builder-buyer agreement as per RERA:
1. Project details: The agreement must specify the details of the project such as the name, location, and the proposed date of completion.
2. Carpet area: The agreement must clearly indicate the carpet area of the apartment or unit being sold. This is important as it will determine the amount of money the buyer will have to pay for the property.
3. Price and payment schedule: The agreement must mention the price of the apartment or unit and the payment schedule. It should also include details of any other charges such as parking, club membership, etc.
4. Construction timeline: The agreement should include the construction timeline of the project and the penalties that will be levied on the builder in case of delays.
5. Possession date: The agreement must specify the possession date of the property and the consequences in case of delay.
6. Quality standards: The agreement must include details of the quality and specifications of the materials used in the construction.
7. Termination clause: The agreement should have a termination clause that allows buyers to cancel the agreement in case of any breach or violation by the builder.
8. Dispute resolution mechanism: The agreement should mention the dispute resolution mechanism in case of any conflicts between the builder and the buyer.
9. Obligations of the parties: The agreement must clearly mention the obligations and responsibilities of both the builder and the buyer during the construction and after the possession of the property.
In conclusion, the builder-buyer agreement is a crucial document that protects the interests of both the builder and the buyer. As per RERA, certain clauses must be included in the agreement to ensure transparency and fairness in the transaction. Buyers must carefully review the agreement before signing it and ensure that all the necessary clauses are included.
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