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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  • Originally Posted by Ram.bharose
    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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  • 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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  • 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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  • Originally Posted by MANOJa
    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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  • Thanks

    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.

    :bab (38):
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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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  • Originally Posted by SMJ2011
    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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  • 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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  • 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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  • I can GUARANTEE you that 90% Of Buyers even on this Forum will be VERY VERY HAPPY...if builder delivers 70% of what he promised in his brochures...and Delivers within 12-14 months Delay....
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  • Since you haven't signed the agreement yet, those conditions are not binding on you yet.

    If you have given 10% in advance, you can negotiate with the builder to get that money back without any deduction. Only BBA is binding, any clause on the booking form cannot be legally binding unless ratified on stamp paper by BBA.

    You can still see pros and cons of both the situations, whether you want to book under these conditions or not.

    When people say the BBAs are always heavily tilted in favor of builders, they are 100% right. This is the trend of the industry in the absence of any regulator.

    Do see the reputation of the builder. If it is OK, you can go ahead and sign the agreement. I very much doubt if all builders are using or have started using clause as stated above (20-d). I signed the agreement six months back, and there were no clause like that. However, as I mentioned earlier, the court always can strike down such clauses as illegal if ever the matter reaches the court, but why on first place to take these chances?

    Enquire in the market if all builders have included such clause, and based on that, you can make a decision.
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  • You are talking about BBA, which comes much later

    See what a so called reputed builder saying on their marketing material

    ****************************

    A. Price The prices indicated in the PAYMENT SCHEDULE under the Down Payment Schedule or Installment Payment Schedule as enclosed are firm except in the case of any increase in the prices of steel or cement or Govt. Levies / Taxes. BENGAL DCL reserves the right to increase the price of the apartments both under Down Payment Schedule and Installment Payment Schedule, accordingly.
    (Cement and Steel are the two items that have a large impact on cost of any Project and the price of the same is entirely subject to vagaries of market. Actual impact is known after completion of a Project; however, the amount varies from 18% to 25% of the Project revenue. For the present purpose we will take it as 20%. The component of steel shall be 12% and of cement 8%.
    Any fluctuation in the above prices as reflected by a change in RBI Price Index (PI) will be chargeable to the price of apartments in the ratio of the variation, reflected on the RBI publication on the relevant PI with respect to PI as on 31.03.11)
    ***************************

    Professionalism gaye tel lene!!
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  • RE in India is FREE FOR ALL...Builders and Brokers along with Govt. are doing whatever they want....this is what happens with No regulator...and i am sure..even if there is...Loop Holes will ensure..such a free run continues.

    I have never seen it in developed nations that a Sector / Colony which has Many builders have so much differences in Quality, etc etc. even though all were of same class

    Look at sector 93...and get a real experience...ATS, Supertech, Parasvnath, Eldeco, Silver city all in One Row...and still so much difference
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  • Bhaiya, agar exit karna hain, then be prepared for a deduction ( if the Builder is decent ) . Agar kucch pull-shul hain, then u might get a refund without deductions . If the Builder is one of the run of the mill kind ( Noida is full of them ), pray hard to god or approach the courts ( try doing that as a group ) .

    Baaki if u can wait, Anna Hazare ka Bill aane wala hain, which is perceived to solve all the ills of this country . U may wait & then try yr. luck .
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  • Ram Bharose ji, Can you please disclose builder name ? I guess it is Ajnara... right ?

    Here is the link of Mahagun and PAN Oasis agreement
    https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/noida-real-estate/10567-buyer-agreement-of-different-project-of-noida?t=12974

    atleast these clause are not there, although it is in full favor of builder only.
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