Agreement for Sale Between Builder and Purchaser: Important Points to Consider
An agreement for sale between a builder and purchaser is a legally binding document that outlines the terms and conditions of the sale of a property. This document is crucial for protecting the rights of both parties and ensuring a smooth and hassle-free transaction. In this article, we will discuss some important points to consider when drafting an agreement for sale between a builder and purchaser.
1. Description of the Property
The agreement should start with a clear description of the property, including its location, size, and other relevant details. This is important for avoiding any confusion or disputes later on. The agreement should also specify any amenities or facilities that are included with the property, such as parking, swimming pool, or gym.
2. Price and Payment Terms
The agreement should clearly mention the sale price of the property and the payment terms agreed upon by the builder and purchaser. This includes the amount of the down payment, installment plan, and final payment. The agreement should also state the consequences of default in payment, such as cancellation of the agreement or forfeiture of the down payment.
3. Possession and Delivery
The agreement should specify the date of possession and delivery of the property. The builder should ensure that the property is completed on time and handed over to the purchaser as per the agreed terms. The agreement should also state the consequences of delay in possession, such as compensation for the purchaser.
4. Rights and Responsibilities of the Parties
The agreement should clearly define the rights and responsibilities of both the builder and purchaser. This includes the obligation of the builder to provide a clear and marketable title of the property, maintain the property during construction, and ensure that all necessary approvals are obtained. The purchaser, on the other hand, is responsible for paying the agreed amount on time and maintaining the property after possession.
5. Termination and Cancellation
The agreement should mention the circumstances under which the agreement can be terminated or canceled by either party. This includes the right of the builder to cancel the agreement in case of default by the purchaser or breach of any terms and conditions. The agreement should also specify the consequences of termination or cancellation, such as refund of the down payment or forfeiture of the same.
An agreement for sale between a builder and purchaser is an important document that lays the foundation for a successful property transaction. It is important to ensure that the agreement covers all the crucial points discussed above to avoid any disputes or disagreements later on. By keeping these points in mind, both the builder and purchaser can protect their rights and interests and enjoy a smooth and hassle-free transaction.