First let us know what builder buyer agreement is?
Builder buyer agreement is the legal contract between the builder and the buyer regarding the entire transaction of house purchase. If the developer does not keep his word on any count, it is the most important legal document that the buyer will have to fall back upon.
Scenario prior to the Real Estate Regulatory Authority Act (RERA) was bit different. Frauds were carried out without any fear as there was no penalties for the same.
Intentional delay in possession, selling the property to multiple buyers, price escalation were some of the common frauds.
In this ruling as per RERA Punjab, the builder-buyer agreement or sale agreement can’t be one-sided. In the present case, sale agreement was detrimental to buyer’s interest and was favoring builder.
The sale agreement didn’t mention the date of handing over the possession of the flat in question and in case the allottee seeks the refund, the stipulation was laid down that 10% of the deposited amount would be deducted and the balance amount would be paid in three months.
The Punjab Real Estate Regulatory Authority held that sale agreement between the buyer and the builder in a Kharar residential project as unilateral favoring the builder only.
The authority directed Kharar based Bajwa Developers to refund Rs 13.2 lakh apartment cost, along with the interest and Rs 25000 compensation for delayed possession.
It is for the benefit of the buyer to read the builder buyer agreement carefully and not just sign it on the asking of real estate agents without going through the whole agreement exhaustively.
The ruling once agains reminds us of Latin maxim “caveat emptor” meaning let the buyer be aware. In today’s era, both buyer and seller need to be vigilant before signing any agreement.
For more info about RERA Punjab or RERA Mohali in particular, you may dial 99888-17966 for LegalSeva. Stay Informed Stay Strong.
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