Until the implementation of RERA, builders and developers exerted a lot of dominance in the construction and sale of real estate properties. Many times, there was a delay in construction and completion of the projects and the buyers were left with no remedial measures whatsoever. While RERA streamlined many things and acted as a blessing for real estate buyers, buyers and builders must be on the same page in a real estate transaction. That’s where the Builder Buyer Agreement comes into the picture.
Let’s understand the meaning of the Builder Buyer Agreement and its importance in real estate dealings.
Builder Buyer Agreement (BBA) is a contract for the sale of property, or you can say a purchase contract for a home. It states that the concerned property has been transferred to the buyer and all the rights relating to the said property are transferred to the new owner’s name subject to the terms, conditions, and clauses mentioned in the agreement. The agreement lays down detailed information about the property including approvals, terms, conditions, and flat layout as agreed between the buyer and seller.
In 2021, the Supreme Court emphasized the importance of the Builder Buyer Agreement (BBA) and stated it as a very important document for consumer protection. It also asked the Centre to bring uniformity to the BBA. It asked the Centre to frame model agreements for the agent buyer agreement and builder buyer agreement. This will bring more transparency to the real estate transaction. Further, it also stated that such model agreements must conform to the Real Estate (Regulation and Development) Act, 2016 to protect the interest of homebuyers.
The model builder buyer agreement will replace the existing arbitrary agreements and eliminate the one-sided agreements that can harm the interest of the real estate buyers. Such a one-sided contract for sale of property can place the customers in a disadvantageous position as compared to the builders, promoters and agents. The model agreement will bring the buyers and builders on the same page, streamline the real estate transactions and reduce the overall physical, mental and financial strain for the customers.
As BBA acts as a purchase contract for a home, the following are some of the conditions and information that you will find in the builder-buyer agreement:
Here are some of the important points you should remember while going through the builder-buyer agreement:
Builder Buyer Agreement is an important document that all prospective real estate buyers should be aware of. Negligence here gives an upper hand to the builders over the real estate transaction, leaving buyers in the lurch. Being aware alone can make the real estate transaction seamless for the buyer. Another aspect of buying real estate is choosing the right lender.
IIFL Home Loan is one of the preferred institutions that provides seamless home finance to real estate buyers. With quick processing and minimal home loan documents required, you can get your real estate financed purchase in no time. All this while enjoying affordable interest rates and flexible terms. Build your dream home now with IIFL Home Loans.
Ans: Builder buyer agreement lays down what the buyer is signing for and protects the interests of the property buyer. It also holds the builder accountable for the deliverables.
Ans: Yes. You can negotiate the terms of the builder buyer agreement with your builder.
Ans: Yes. The builder can cancel the sale of the property if it is permissible as per the builder-buyer agreement and satisfies the relevant conditions. Some of the most common causes include non-payment or delayed payments by the buyers.
Ans: If the builder fails to fulfill its obligations, then the buyers can file a complaint with RERA authorities for further course of action.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.