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05 JANUARY, 2023
A Builder Buyer Agreement (BBA) document is vital for both the buyer and seller. As the name states, it is a contract between the buyer and seller stating specific clauses, modalities, and conditions both parties need to follow. Each of the clause is important as these are related to builder-buyer agreement terms, property details, delivery details, and so on. All the clauses are detailed and what is most important for you is that it is a legally binding document subject to the laws of the state.
What we have done is compiled the major aspects of the BBA, what it means, what it covers, its importance, and more.
What Does Builder Buyer Agreement Refer To?
The Builder Buyer Agreement refers to a legal agreement between the buyer and seller, which is known as a contract of sale. The BBA real estate sets out the terms and conditions of buying a property, including payment arrangements, delivery date, inspection period and other obligations on both parties.
The importance of this document increased rapidly, conforming to the Real Estate (Regulation & Development) Act 2016. The RERA Act mandates that all private real estate developers register their projects with their respective state governments within three months of the notification being issued. Once registered, they will be required to publish an advertisement regarding their registered project before selling it off or offering possession to any consumer (buyer).
We have all heard of homeowners not getting the property they signed up for, and the BBA can help the buyer take legal action against the developer in such cases.
Importance of a Builder Buyer Agreement (BBA)
A Builder Buyer Agreement (BBA) is a legal document which states both the builders and the buyers responsibilities. It protects both parties - you as a buyer and the builder's interests, and maintains transparency between both parties throughout the procedure.
For a flat purchase agreement with a builder, a BBA can also cover matters such as the deposit money amount you will pay, the delivery timeline, and so on.
Why Should You Sign a Builder Buyer Agreement?
The agreement should cover all aspects of your building project, including:
What Are the Parts of a Builder-Buyer Agreement?
The Builder-Buyer Agreement (BBA) has all the terms and conditions of sale. Both parties should sign the BBA before handing possession of the property to the buyer.
The BBA can be divided into three parts:
The BBA is a legal document that needs to be signed by both parties before handing over possession of the property to the buyer, even though you are paying home loan EMI. The BBA should include all the terms and conditions of sale and any special clauses that apply to your case.
Read Also: Commercial Vs Residential Property: Which Is Best For The Investing And Rental Purpose?
Things to Keep in Mind before Signing a Builder-Buyer Agreement:
Check your Builder-Buyer agreement for:
Builder Buyer Agreement Before RERA
Also, there was no mention of transfer charges in the pre-RERA agreement, due to which the builders used to charge massive amounts as transfer fees.
Builder Buyer Agreement After RERA
The BBA document now stands as a guiding document for both parties that maintains transparency efficiently.
The builder-buyer agreement is an important document you should sign before moving into your new home. It may seem like a mammoth task but believe us it is an excellent way for both parties to understand the expectations from their partnership. It will help to resolve any legal issues you may face in the future with respect to quality of the house you receive or the timely delivery of your property. Once again, we cannot stress the importance of reading every clause carefully and in detail.
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