Without assistance from a specialist, you can determine the validity of your purchase documentation. However, the following considerations must be made before signing on the dotted line.

You can undoubtedly be protected from developers’ dishonest tactics by exercising caution and being informed of your rights. Despite the numerous restrictions that have been put in place over the past five years, there is still a lack of transparency in the real estate market, therefore it is advisable to physically inspect all of the paperwork before making a purchase. In order to guide you through this difficult process, it is also strongly advised that you hire a lawyer. If, however, that doesn’t seem likely, the buyer can still close on the house by exercising extreme research.

Checklist for buyers

1. Personal details

The entire seller’s information must be included in the agreement. Name, residence, PAN, Aadhaar, and bank account information for the father are included. The exact address of the property and the municipal, tehsil (administrative division), or collector’s land registration number must also be included. There should be two witnesses to the agreement, one from the buyer’s and one from the seller’s side.

2. Property documents

The agreement’s ownership transfer and title documents’ veracity must be attested to by the seller. Additionally, he must make it abundantly evident that the transfer of ownership is taking place in a legitimate and thoroughly proved manner. The agreement must state that all debts owed on the property have been paid in full as of the transfer date. The contract also needs to fully hold the buyer harmless from any disagreements over the property’s ownership and title.

3. Date of possession

For the purpose of transferring the property from the builder, “the date of possession of a unit is significant to the purchaser. It is the day the buyer is supposed to take possession of the property, and it obligates the developer to turn over possession by the time specified in the contract. The buyer has the right to file a lawsuit if possession is not provided by that date, according to Anirudh Hariani, a lawyer at Hariani & Company.

The “time of the essence” provision in an agreement specifies the dates by which the parties must carry out their respective commitments.

4. Payment schedule

According to Hariani, “the paragraph that establishes the payment schedule lays down the total sum to be paid and the timeline within which it is to be paid.” If the payment is made in instalments, the payment plan explains each instalment in detail. This helps to eliminate any potential uncertainties in the future, observes Hariani. The contract must include all relevant payment information from the buyer, including any applicable mortgage information.

5. Termination

The termination clause outlines the penalties imposed on the parties in the event that they violate the code of conduct that is required of them. Either party may terminate the agreement under a “termination by convenience” clause in the contract.

6. Dispute resolution

The dispute resolution clause sets out the mechanism by which the parties can resolve their disputes. This is alternative to settling the matter through litigation. Besides this, other processes used to settle commercial contracts include adjudication and mediation.

7. Amenities

The amenities clause helps the purchaser know the additional benefits he will be entitled to and mentions the supplementary amount towards maintenance charges. In case of any default on the amenities sought to be provided, the purchaser may consider it as a breach of contract.

8. Penalty

A penalty clause should be incorporated in the purchase agreement, clearly specifying milestones and the penalties in case of failure from both, seller and buyer.

Finally, registering a legal purchase agreement, is of benefit to the buyer, since it offers protection from legal complications at any stage of ownership or eventual resale. No change can be made once the purchase agreement is drafted and registered. If any change needs to be made, the consent of the buyer must be obtained and an addendum will be made in the agreement.

Property documents’ verification

All the terms and condition and clauses mentioned in the property documents must be read and understood carefully, before you agree to enter into any deal. Also, because of the frequent usage of legalese, you might find the working complex to understand. Do not assume a word to have a specific meaning, unless you consult a legal book on the same.