When it comes to real estate transactions in India, the Real Estate (Regulation and Development) Act, 2016 (RERA) has brought a sea change in the way the industry functions. One of the most important aspects of RERA is the requirement for a builder buyer agreement. This agreement is signed between the builder and the buyer before the start of construction and outlines the terms and conditions under which the property will be built and delivered.
The builder buyer agreement format mandated by RERA is a legally binding document that provides protection to both the builder and the buyer. The agreement defines the obligations and responsibilities of both parties and sets out a clear roadmap for the construction process. The format also includes details of payment schedules, timelines for completion of the project, and the penalties for delays.
One of the most significant changes introduced by RERA is the requirement for the builder to register the agreement with the relevant state authority. This means that the format of the agreement needs to be in compliance with RERA guidelines, failing which the agreement might not be considered valid.
The RERA builder buyer agreement format has several key clauses that need to be included. These include:
1. Project details: This includes the name of the project, location, the land area, number of floors, number of units, and the total area of the flat.
2. Price and payment schedule: The total price of the flat, the payment schedule, and the interest rate for delayed payments.
3. Construction timeline and possession date: The timeline for completion of the project, the date of possession, and the penalty for delay.
4. Carpet area and built-up area: These two terms are defined in the agreement to avoid any confusion between the buyer and the builder.
5. Amenities and facilities: Details of the amenities and facilities provided by the builder like water supply, electricity, parking, security, etc.
6. Termination clauses: The agreement must also specify the circumstances that can lead to termination of the agreement by either party.
7. Dispute resolutions: The agreement must also include details of the dispute resolution mechanism in case of any conflicts between the builder and the buyer.
The RERA builder buyer agreement format is designed to bring transparency and accountability to the real estate sector in India. By mandating strict guidelines, the government aims to protect homebuyers from unscrupulous builders and ensure that construction projects are completed on time. If you are planning to invest in a property, it is important to ensure that the agreement you sign with the builder adheres to RERA guidelines.
