A quick guide to your purchase agreement!
A purchase agreement is a legal document detailing the final consideration of a purchaser who agrees to buy and a seller who agrees to sell the specified property under the stated terms and conditions. It is a binding contract on both the parties. The failure to fulfil the commitment even by one of the parties, automatically gives the legal capacity to the other party to call the contract as a null and void contract.
We bring to you a quick and handy guide to go through to avoid the common mistakes before you buy a property. Normally disputes arise because the buyers are ignorant and don’t read and check the specifics on the agreement before signing.
Points to check in a purchase agreement:
- Important details of both the parties concerned like the name, age, residential address and pan card details.
- the price at which the transaction is taking place.
- other details like any mortgages on the property and any other liabilities created.
- should include any additional charges such as special location charge or club membership charge, taxes applicable by the government, mode of payment, details of occupancy certificate and whether the building has been insured.
- should also provide exact details of the property's location and municipal, district or collector's land record number.
- if there is any clause which includes the mention of any hidden costs that may arise due to change in plans or extra cost for registration, maintenance, amenities etc.
- time-line related to construction and handing over of the property must also be included in the agreement.
- should also have the necessary schedule for the possession of the property, remedies in case the developer fails to deliver on time, conditions for delays beyond the control of the company, conveyance of the said property and general compliance with respect to the said apartment.
- agreement must fully indemnify the buyer from any disputes related to title and possession of the property.
- if the carpet area that you are purchasing is mentioned and also the date of completion vis-a-vis the possession.
- a penalty clause that safeguards the buyer to an extent against the delay in the construction.
- other aspects like the rights of the purchaser for transfer of the allotment to a nominee or sale of interest pending completion of construction.
- in event of cancellation, amount details that shall be retained by the developer.
The seller must confirm the authenticity of the title documents and ownership transfer in the agreement, and state clearly that the transfer and handing over of possession is happening in a legal and fully attested manner. It must be witnessed by two individuals from the seller's side to avoid any cheating on his part. The agreement also reflects the fact that all dues related to the property have been cleared up to the date of transfer. Wishing for a successful and beneficial real estate purchase for you!
