4 essentials to know before you sign a home agreement

4 essentials to know before you sign a home agreement

18 Jan

So you have recognized the house that you want to buy, got the home loan passed, and now are ready to own your home. If you think it is a regular sail from here onwards, think again. Once you have created these formalities, the next part is ensuring that the constructor does not involve you in any legal traps. There are some very important tips to consider when you are about to agree with the developer. Here is a look at five such points you need to memorize:-

  • Original price of the house

    The agreement you enter in with the builder details the various costs that you will need to bear for buying the house. This would include the cost for services like electricity and water, parking space, various taxes, and in some cases even the registration charges. However, the builder may then Charge some extra charges for any of these.

    Measures to take

    • Check the agreement very thoroughly for all the charges applicable.
    • If possible, get the agreement checked by a lawyer for any missing or hidden charges and get the anomalies (if any) rectified by the builder.
    • If the extra charges are for alterations made to the original plan, ask the builder for the sanction letter provided by government authorities for such alterations.
  • Actual size of the house

    The agreement would specify the size of the house you are buying. However, there is a clause which states the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications. Therefore, you may agree on a certain size, but the builder can give a different size.

    Measures to take

    • Before settling on your choice of a builder, do some research on the builder's past projects?
    • If possible, talk with other customers who already have got ownership of the difficulties faced by them.
    • Try and add a clause in the agreement stating the minimum and maximum size behind which the constructor cannot increase or decrease.
  • Carpet Area

    The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area in which a 'carpet' can be laid. When the area of the walls including the balcony is calculated along with the carpet area, it is known as a built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden, and swimming pool is called the super built-up area. The carpet area can be 15-30 percent less than the super built-up area. However, you will not get to know the specific size until the flat constructions are completed.

    Measures to take

    • Purchase the property based on the carpet area of the flat.
    • Assure that this area is mentioned in the contract.
    • Try to get a string included to assure that the contract can be terminated if the builder gives a house with a carpet area less than what is mentioned in the contract.
  • Date of Possession

    The contract normally mentions a tentative date of possession. However, there have been instances where builders have delayed possession by more than a year.

    Measures to take

    • Check the process of the construction personally.
    • If the progress is slow and would not meet the date of possession on time, build pressure on the builder.
    • Creating a society with other buyers sometimes helps a lot in making things speed up at the builder's end.

    Completion certificate

    On handing over the house to you, the builder needs to also give a completion certificate. This is issued by municipal authorities, which establishes that the building complies with the approved plan. You would need this certificate for the registration of your house and other government formalities.

    Measures to take

    • If the agreement does not mention the certificate, ensure that the agreement has a clause which states that the builder will provide the certificate while handing over the house to you.
    • If the builder delays a lot, forming a society with other buyers sometimes helps.

    Other than these four points there more points such as the quality of the construction, management of the society, etc. For this, you can try to add clauses to the contract or form a society to get the contractor to meet your requirements. Since there is no industry control you can turn to for the redressal of issues, you must be aware of what you want and what you are perceiving.

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