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Old August 25 2011, 06:18 AM   #1
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Default "Builder buyer agreement -CAN IT BE ALTERED

Hi senior members/legal experts......I'm soon going to sign BBA with my builder. Luckily one of my friend already had property in the same project so I have got scanned copy of the BBA. I had studied the same (as a amateur off course) and judged that these BBA's are heavily scewed in favor of the builders (what more to expect). However there were 2 terms in that for which I required some help.

1. The penalty term (for non execution of the project on time)
2. In case the land goes in some legal trouble

Can you please help me on this.

>> can these terms be altered if I push the builder hard
>> Is there any other critical term that I can include which might help safe guard my interest.

I need help from members who have gone through this and done some changes in their BBA's.

Kindly help!!

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Old August 25 2011, 07:35 AM   #2
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Quote:
Originally Posted by Ram.bharose View Post
Hi senior members/legal experts......I'm soon going to sign BBA with my builder. Luckily one of my friend already had property in the same project so I have got scanned copy of the BBA. I had studied the same (as a amateur off course) and judged that these BBA's are heavily scewed in favor of the builders (what more to expect). However there were 2 terms in that for which I required some help.

1. The penalty term (for non execution of the project on time)
2. In case the land goes in some legal trouble

Can you please help me on this.

>> can these terms be altered if I push the builder hard
>> Is there any other critical term that I can include which might help safe guard my interest.

I need help from members who have gone through this and done some changes in their BBA's.

Kindly help!!
Why would you sign such an agreement? What is the emergency? Is this the only builder selling?

Class d is a ridiculous class. In fact, the builders claims that he is not aware if there is a pending litigation, or the property's title is clean or not. I would suggest you not to go to that level. It will only encourage these unscrupulous builders to blackmail all prospective buyers.

Ask the builder to come clean, and remove these clauses. Dont suggest any additions, but also don't accept such nonsense clauses.
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Old August 25 2011, 07:44 AM   #3
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I am not sure, but there are little chances that the "Noida Authority" (If you are buying something in Noida) may also be involved in encouraging builders to get this clause (d) included in new agreements.

In the current scenario, if a builder fails and bankrupts because of the farmers litigation, buyers still can sue claim for the compensation from the NA and UP Government. If court ever agrees to this clause (which I doubt - court may term this clause as illegal), then the buyer looses all rights of recourse from NA and UP Government.

However, you should not take a chance and shouldnt sign this agreement.
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Old August 25 2011, 07:49 AM   #4
 
 
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BBA's r normally heavily tilted towards the Builder .

Builder will not change them for u .

One has the following options -

a) Accept the BBA & pray to god that everything ultimately turns out to be fine ( more than 90 % buyers belong to this category ).

b) Go & book with some other Builder ( but his BBA is likely to be similarly one sided ) .

c) Fight it out & approach the Courts or the CCI ( who seems to have woken from sleep now ) .
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Old August 25 2011, 08:25 AM   #5
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Originally Posted by MANOJa View Post
BBA's r normally heavily tilted towards the Builder .

Builder will not change them for u .

One has the following options -

a) Accept the BBA & pray to god that everything ultimately turns out to be fine ( more than 90 % buyers belong to this category ).

b) Go & book with some other Builder ( but his BBA is likely to be similarly one sided ) .

c) Fight it out & approach the Courts or the CCI ( who seems to have woken from sleep now ) .
Very well articulated by Manoj Bhai. The BBA has a standard draft with all the builders, and none would change for 1 customer, as they have 100 others who are happily ready to accept. Most of the agreements, be it home loans, BBA, Commercial contracts etc etc, are allways one sided, and its very difficult to protect the interest of both the parties.

So you may have to accept the same. Even if you move on to some other builder, he would have the similar terms in BBA.
The best and only solution is to search for a ready to move or nearly 80% complete project, so atleast you know what you are getting.

Also in order to get some background details of the builder thru authorities, you might file an RTI, to know about exact map approvals, building approvals, land title, if you are too much inclined for this project.
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Old August 25 2011, 12:47 PM   #6
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Thanks Kumar and manoj........Actually I had already given 10% as booking and next installment of 20% is also due.....I was contemplating for a loan which won't get reimbursed till BBA is signed that is the problem.......Anyways let me check if builder if clause c can be removed. otherwise its going to be wait n watch like lakhs of buyers of Noida.

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Old August 25 2011, 01:29 PM   #7
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My Dear Rambharose....it is your own mistake. It is an existing project where your friend had booked earlier. You should have studied BBA before paying 10%. It is too late for you now. You are already under the clutch of builder. If you refuse to sign on dotted line...be sure builder will forfeit 10%.

You have no choice now really...........Pray God & Sign.
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Old August 25 2011, 01:48 PM   #8
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Originally Posted by SMJ2011 View Post
My Dear Rambharose....it is your own mistake. It is an existing project where your friend had booked earlier. You should have studied BBA before paying 10%. It is too late for you now. You are already under the clutch of builder. If you refuse to sign on dotted line...be sure builder will forfeit 10%.

You have no choice now really...........Pray God & Sign.
Its not the mistake of Mr. Rambharose.....Its the mistake of Lakhs and Lakhs of some retail buyers who blindly accepts the terms laid by the builder, in the sweet dream of owning the house.
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Old August 25 2011, 02:24 PM   #9
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As many already said, almost all agreements, be it BBA, Loan, Credit Card, Bank Account, your employment letter ... all are one sided.

Once one of my friend commented on his offer letter... except the salary line, rest are all threatening statements.

Now, be practical, ask simple question
Do you have much option?
What if things go wrong?

The silver lining is, all these one sided agreements can be challenged in court, no matter whether you signed or not. Very easy to say ... but the onus is on you to prove in court that the agreement is one sided and not equally fair to both the party.

So practically, you do not have much option, just be happy that if there is some major issue then you still have option to jointly fight against all these one sided agreements. As an individual, you have very little chance unless you are well connected and well resourced.
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Old August 25 2011, 02:26 PM   #10
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I will be CLEAR CUT with you:

1. BBA will not be changed by builder for you.

2. He will give you an option "Take it or leave it"...There are enough Investors in Market...Have you NOT SEEN THEIR ATTITUDE...they behave as if they are doing YOU a favour by selling you a flat !!!

3. The only way i can see a BBA Clause being altered is when there is a HUGE GROUP BOOKING of around 100+..and then probably the Builder will consult his lawyers

4. Penalty clause has many Ifs and Buts....and I have gathered that in the past 15 years or so...only 2-3% Of Builders have paid Penalty clause.

5. In the Past 15 years I have noticed that 90% Of Buyers are happy as long as they get their home to move in....in that also if Builder does 70% of what he promised..he is hailed as a Top Builder


In the past 4-5 years..there have been many many stalled projects...you are free to do a study on them and check what happened with the Buyers.

There is No RE Regulator in this country and as Politicians are heavily invested in this business...its not going to happen..and even it does..i am certain loop holes will be there.

In short and simple words...if you book an under construction property of a Builder....LUCK plays the Biggest Role.
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