Builder-Buyer Agreement: Facts, Terms And Conditions, Legality

Builder-Buyer Agreement: Facts, Terms And Conditions, Legality

Builder-buyer agreements serve as a sales contract between the buyer and the builder and are prepared and signed when a property is being sold while still under construction. The builder-buyer agreement, which outlines the specifics of the property sale, must be followed by both the buyer and the Builder Ivybridge to complete the property transaction.

 

Builder-buyer contracts before RERA

Before the RERA took effect, builder-buyer agreements were virtually invariably biassed in the builders' benefit. In a standard builder-buyer agreement, there may be provisions requiring 20% interest if the buyer doesn't make payments on time. If the builder didn't finish the job by the deadline, he would be penalised with 2% interest.

 

the construction schedules

In most cases, the contract will state that the builder will deliver the apartment to the customer 36 to 42 months from the "start of construction." The fact that this time started on the day of the reservation is not mentioned in the agreement. 

Price escalation clause

This provision allowed Extensions Ivybridge to increase the property's price when necessary. Even if a project was delayed, they could still increase the price by arguing that the cost of raw materials and other inputs had increased. The buyer could not stop the double whammy of increased expenses and delays.

The contracts also contained a provision permitting the builder to alter the apartment's square footage. "Even if the super area increased, you had to pay 10%–15% extra, while the benefit to you, in terms of the additional area, would be marginal or nil."