Buying A House? Read Your Purchase Agreement First

Must check for buyers:

Home buyers need to check the section that has included the information regarding costs. This means, the base price of the property, extra charges like favoured location, club house membership and the levy charges. Sometimes developers pushed in some hidden charges concerning change in prices if there is any modification in building plans or amenities provided. It is always better to read the terms and conditions carefully that based on the earnest money and the retaining amount by the developer if there is any cancelation of property purchase.

Adding to it, you also need to check the carpet area, the completion date of the project and the date of possession. Nowadays, delays in project completion have become a common term for developers and so, in case of project delays the agreement should provide the alternative option or compensation and a penalty clause which will uphold your rights in case of delays.

Registration of the purchase agreement is an important thing that buyers need to bear in mind. "The objective is to prevent fraud, as well as create and maintain a public record that is up to date. Unregistered owners are not recognised as lawful owners of the property. So, you must register the property and relevant documents to avoid any fraud or litigation. However, in some cases, the developers do not register the buyer agreement. Instead, they register the conveyance or sale deed that is executed on possession," added Jain, reports Economic Times.