Agreement for Sale of Under Construction Flat: Understanding the Basics
If you are in the process of purchasing an under construction flat or planning to do so in the near future, it`s essential to have a thorough understanding of the agreement for sale. It is a crucial document that outlines the terms and conditions of the purchase, and a professional can play a significant role. In this article, we will discuss the basics of the agreement for sale of an under construction flat.
What is an Agreement for Sale?
An agreement for sale is a legal document that outlines the terms and conditions of the purchase of a property. It is a contract between the builder and the buyer, and it sets out the rights and obligations of both parties. The agreement for sale typically includes details such as the purchase price, payment schedules, possession date, and other important clauses.
What is an Under Construction Flat?
An under construction flat is a property that is still being built. It is not yet ready for possession, and the buyer usually makes the purchase based on a floor plan and other specifications provided by the builder. The agreement for sale of an under construction flat is slightly different from that of a ready-to-move-in property. The key difference is that the buyer pays the purchase price in installments, depending on the construction progress.
Understanding the Clauses in the Agreement for Sale
The agreement for sale of an under construction flat contains several clauses that both the builder and buyer need to be aware of. Some of the critical clauses are:
1. Possession Date: This clause specifies the date by which the builder should complete the construction and hand over possession of the flat to the buyer. The possession date is usually subject to change due to factors like delays in construction, changes in government regulations, etc.
2. Payment Schedule: This clause outlines the payment schedule for the purchase price. The buyer typically pays the purchase price in installments based on the construction progress.
3. Carpet Area: This clause specifies the exact area of the flat that the buyer will get possession of. It`s essential to understand the difference between the carpet area and the built-up area, as the buyer pays only for the carpet area.
4. Amenities: This clause outlines the amenities that the builder will provide, such as parking space, clubhouse, gym, swimming pool, etc.
5. Termination Clause: This clause outlines the conditions under which the agreement for sale can be terminated by either party. Typically, if the buyer defaults on payment, the builder can terminate the agreement and forfeit the amount paid.
Conclusion
In conclusion, understanding the agreement for sale of an under construction flat is crucial for both the builder and buyer. It`s essential to read and understand the terms and conditions laid out in the agreement before signing it. An experienced copy editor in SEO can help in crafting a well-written agreement for sale that satisfies both parties. As a buyer, make sure to ask for clarifications and seek legal help if needed before signing the agreement.