Buying A House? Read Your Purchase Agreement First

Before signing the dotted lines:

It is necessary to read the agreement precisely before signing. That is, soon after you sign on the dotted lines, your developer will have all the right to do changes based on the clauses stated in the agreement. Such changes can be the right to modify, additions or removals, changes in building plans, floor designs, locations and so on. Some developers mention such clauses in the application form also.

Shveta Jain, executive director, residential services, Cushman & Wakefield India said that, developers always try to maintain their safety by including some clauses. For example, Right of the company to additional floor area ratio (FAR), where the allottees give consent that if the FAR is raised by a government authority beyond the existing one which is applicable then the additional ratio’s exclusive right and ownership is with the firm. It means the developer will have possession of the extra area and can sell it to the potential home buyers for an extra cost.