Have you heard of a builder-buyer agreement? It is the first document which brings the builder and home buyers on a common ground regarding the sale/ possession/ delivery of the project. The BBA or builder buyer agreement format as per RERA lays the terms regarding the layout of the overall project, unit to be allotted to buyer, additional rights, conditions for cancellation of agreement, and the list goes on. All such terms depict how important a RERA builder-buyer agreement is.
Since the terms in BBA are not written in local language or simple English, buyers often find it complex and hard to understand. There is no uniformity regarding conditions followed in different states and UTs in India. While buying a property in Kolkata while residing in New Delhi, understanding the documentation through property lawyers in Kolkata could save a lot of time and effort, and future interests of the people concerned. If the terms agreed are not understood beforehand, it could result in a lot of trouble for home buyers in the longer run. Hence, the crucial pointers to be taken care of before signing a BBA are enunciated below.
Although builder projects are prevailing in all states and UTs in India. However, there is no uniform format that decides the conditions of agreement between home-buyers and the builders. The validity of builder-buyer agreement depends upon the terms and conditions included in the document. Given below are the general conditions which should be scrutinised by the home buyers before signing any document:
If the terms and conditions contained in the builder-buyer agreement are too tricky and complex to be understood by a lay person, real estate lawyers are the rescue professionals. Before signing the RERA builder buyer agreement, it is recommended to understand the terms thoroughly. The reason being that BBA is drafted by experienced legal professionals hired by the builders. Hence, the document mostly inclines towards the builder’s interests and thus, the home-buyer’s interests are often compromised.
In a recent 2021 case, a Public Interest Litigation (PIL) sought a uniform builder-buyer agreement across the nation. Currently, it is upto the states to or not to issue a model builder buyer agreement format which specifies the terms and conditions to be included in such state in the real estate. However, the same is not followed at the state level as well. The PIL seeks a common format from the central government which applies to all the states, upholds the buyer’s rights and strictly requires the builders to follow the requirements under RERA. Proceedings are ongoing in this case, and hence, the uniform RERA builder-buyer agreement is awaited.
Q- What is a builder buyer agreement?
A- The conditions agreed upon by the builder and a buyer regarding delivery of one of the units of a builder’s housing project is usually termed as RERA builder buyer agreement or a BBA agreement. The conditions range from specifications of carpet and super area, date of possession, building layout, delay in delivery, payment plan, etc.
Q- Is builder buyer agreement a contract?
A- The major difference between agreement and contract is that promise and acceptance to do or abstain from something is agreed upon which forms an agreement. For an agreement to become a contract, there are certain legal obligations. Hence, the validity of builder-buyer agreement or it being a binding contract depends upon the legality of terms included. If such agreement is against the existing real estate laws, it is not valid and hence, not a contract.
Q- Can a builder cancel the agreement?
A- If the builder-buyer agreement specifies the terms on which the deal can be terminated, it can indeed be cancelled by the builder rightfully. Delays in payment or no payment after a few instalments are one of the major reasons for cancellation of builder buyer agreement registration.