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AGREEMENT TO SELL

Agreement to Sell

AGREEMENT TO SELL NOIDA

 An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment.

 Being an important document in the sale transaction, it enables the process of sale to go through without any hurdles. All the terms and conditions included in the agreement of sale must be understood thoroughly by both the parties and obeyed throughout the sale process till the time the sale deed is made. Agreement of sale is the base document on which the sale deed is drafted.

An agreement to sell is also a contract of sale of goods, in which the seller agrees to transfer goods to the buyer for a price at a later date or after the fulfilment of a condition.

When there is a willingness of the both the parties to constitute a sale i.e. the buyer agrees to buy, and the seller is ready to sell the goods for monetary value. In an agreement to sell the performance of the contract is done at a future date, i.e. when the time elapses or when the necessary conditions are satisfied. After the contract is executed, it becomes a valid sale. All the necessary conditions required at the time of sale should exist in the case of an agreement to sell too.

If the seller rescinds the contract, then the buyer can claim damages for the breach of contract. On the other hand, the unpaid seller can also sue the buyer for damages.

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Builder Buyer Agreement in Noida

BUILDER BUYER AGREEMENT IN NOIDA

The builder-buyer agreement is an immensely important document as it is the legal contract between the builder and the buyer. 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 on. Many builder-buyer agreements are heavily tilted in the builder’s favour.

The agreement says that the builder will offer possession of the apartment (usually) within 36-42 months from the ‘start of construction’. Note, that it does not say that possession will be offered within the specified time from the ‘date of booking’. The commencement of construction is entirely up to the builder’s discretion. Some developers take the liberty of considering construction to have started after the excavation work is completed.

Builders include this clause in the agreement which allows them to raise the price of the apartment. If the project has been delayed, it could be due to the builder’s fault. They then penalise the buyer by raising the cost, claiming that raw material and other input costs have increased.

The agreement could include a clause allowing the builder to change the square footage of the apartment. If it has increased, he charges extra for it. “What changes, is not the carpet area but the super area,” explains AnujSood, head of Noida-based Sood Properties. “You may end up paying 10-15% extra, while the benefit to you, in terms of the additional area, may be marginal or nil.”

The agreement says that if the buyer delays in paying an installment, there will be interest to pay as well. The charge could be hefty – as much as 18-24% compounded quarterly. The developer may even include a clause stating that if you delay payment beyond a point, he reserves the right to cancel your allotment and that you may have to forfeit the earnest money, which could be as high as 20-25% of the total cost. The balance will be returned to you without any interest.

The agreement may say that you will have to pay for certain items on actual cost basis at the time of possession. He may then spring an unpleasant surprise by demanding an unexpectedly high amount. This could be for things like club membership, electricity connection charge, etc. Similarly, at the time of booking, he may not specify the PLC (preferential location charges). Later, he could charge you anywhere from Rs 100 to 500.

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