To All Experts of Real Estate Forum,

I have purchased an apartment in 2009, for currently under consturction property, for which builder has sent a builder buyer agreement, which I havent yet signed and sent it back and was pending with me from last 1-1/2 years. I am currently out of india and now since the property pocession is coming near, Wanted to check,
1) IS it really required to sign and send back the document to the builder? Failing which, is there any legal implication?

2) The builder has sent me 2 copies (1 Original on stamp paper, and one the Xerox), Which one should I sent back to the builder, the original one or the Xerox one.

I know it is pretty naive, but being en end user, and the first time owner, This is all new :) :)

Would appreciate your response!!!
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  • Why did you send the BBA back and not sign it? If you had some concerns then you should have discussed that with the builder and either get them changed or accepted the way it was. BBA tells what day your agreement starts and in this way there is no agreement b/w you and the builder.

    How is the project construction going and are you sending payments on time? In worse case scenario, you could get stuck with nothing in your hand(as your allotment without BBA is not confirm) and also lose all the payments made so far. Not trying to scare you, but you have to be careful with the tricks builders play.

    It would be better for fellow members to help you on this forum if you can tell us a little more about the builder and the project.
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  • I didnt send it back, it is still with me and I am planning to send it Soon . I have the allotment letter and I am paying up the installments.. and everything is going Good.. Builder is 3C and project is LP.... Ppl.. dont scare me, please tell me is it really a very horrible mistake I did...
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  • Originally Posted by vikas2012
    I didnt send it back, it is still with me and I am planning to send it Soon . I have the allotment letter and I am paying up the installments.. and everything is going Good.. Builder is 3C and project is LP.... Ppl.. dont scare me, please tell me is it really a very horrible mistake I did...


    Hi Vikas

    with little knowledge I have its good to have a BBA. Mainly it is required when you want to get your project financed by the bank etc etc . Moreover it gives all the details of the projects and mutually what you have agreed with the developer etc etc.

    Incase of legal battle with the builder BBA agreement can get handy ....

    But at the same time its not that important a document that Builder can just run away with your money. Incase Builder has to run away with your money he will do so even if you have a BBA or not. Moreover incase of any other dispute too BBA agreements are normally made so much in favour of Developers that they will find a way to get through . Infactpersonally I feel
    that its just a document to console your heart that all will be fine though
    I dont think any big dispute can be decided just based on the BBA at least in the Indian context with the type of judical system we have .

    Infact if a situation does arise you may have BBA or not still the legal case can be fought against the Developer and BBA will not have a mazor impact in practice....

    To conclude other then getting then to get the project financed its just a Good To have Document....
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  • bro....not clear form your post if the bba is signed by the builder or not.

    if signed you also sign, retain stamp paper copy with you and send xerox one to builder for his records.

    if not signed by the builder it is useless piece of paper...throw in dust bin.
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  • Thanks for the replies guys... It is not yet signed by the Builder, as they wanted me to sign it first and then they will sign it ...

    I know getting it signed from both parties is important... Let me know what should I do.. and what are the major implications.. I hope they can't just have my money and say you have no right to claim..

    I am planning to send them the original today... Would it be ok???
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  • Originally Posted by vikas2012
    Thanks for the replies guys... It is not yet signed by the Builder, as they wanted me to sign it first and then they will sign it ...

    I know getting it signed from both parties is important... Let me know what should I do.. and what are the major implications.. I hope they can't just have my money and say you have no right to claim..

    I am planning to send them the original today... Would it be ok???


    Just for your information

    first of all you will sign both the copies of the BBA Agreement and then send to the Builder and then Builder will sign them and return you one copy .

    That way oth of you will have a copy to retain and use in future.

    I see no major implication of BBA agreement as such .. Infact thsi document is relevent for under construction properties for mutual agreement between 2 parties and as far as 3 C kind of reputed builder I dont think you should fear that he will ask you to go away and take away your money.....

    Well as said before you may get it signed now.
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  • Thanks.. IS there any reason, builder can deny signing it now.. stating that it is too late...
    as the agreement start date on the BB is, from the date of allotment letter issue....so even if I sign it today, IT should still be applicable from date of allotment...
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  • BBA is probably the only "Legally Binding" agreement between the buyer and the seller until the possession.

    Allotment letter is just a piece of paper and questionable in court, same is receipts of installments.

    Since your project appreciated significantly, without a legally binding agreement, your builder MAY choose to refuse you your apartment. Whether 3C will do that or not is a different question but they have all the legal rights to do that, even though you made the payments on time.

    So, you must complete the BBA immediately.

    Just curious, why you delayed signing of the BBA soooo long? Most of the people will be behind the builder to sign the BBA.

    Please share the reason.
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  • Originally Posted by vikas2012
    Thanks.. IS there any reason, builder can deny signing it now.. stating that it is too late...
    as the agreement start date on the BB is, from the date of allotment letter issue....so even if I sign it today, IT should still be applicable from date of allotment...


    I dont see any reason why builder will deny it as such.......

    Its an agreement that mutually decided upon and infact he is the one who has written the details .... On the contrary you as a buyer can have objections to certain clause
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  • Well the reason, was a mistake made by builder on the date of allotment part, which I get it corrected about 9 months ago, and after that there were some issues as I wanted to add a joint applicant,and they asked me to do it before, signing the document, so that both of us, will avoid further paperwork and fees... and because of some travels, it got delayed significantly...
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  • Originally Posted by vikas2012
    Thanks.. IS there any reason, builder can deny signing it now.. stating that it is too late...
    as the agreement start date on the BB is, from the date of allotment letter issue....so even if I sign it today, IT should still be applicable from date of allotment...


    The reason is simple .. GREED

    Even if builder refund you your money with interest, they will make more money selling your apartment in market.

    Many builders does that in one excuse or the other ... whether 3C will do that is different question, no one knows that.
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  • Builder could have all the reason and ammunition to deny and defend it. One of them could be that you were suppose to return BBA after a reasonable amount of time, i.e. 1, 2 or few months but not years. Second, I am sure there is a clause that he could forfeit your booking amount(which is 10%) and will only return rest of the money when he is able to sell your unit. Even you wouldn't know if he has sold your unit for next several years. Most of these main points would be written in the booking form as terms and conditions.

    If builders' intention are okay, then get this odone asap, but don't expect him to pay you any late penalty in case there would be any. Late penalty is based on the time(I think 36 months) from the day you sign the BBA.


    Originally Posted by Indomura
    I dont see any reason why builder will deny it as such.......

    Its an agreement that mutually decided upon and infact he is the one who has written the details .... On the contrary you as a buyer can have objections to certain clause
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  • Originally Posted by djvjain
    Builder could have all the reason and ammunition to deny and defend it. One of them could be that you were suppose to return BBA after a reasonable amount of time, i.e. 1, 2 or few months but not years. Second, I am sure there is a clause that he could forfeit your booking amount(which is 10%) and will only return rest of the money when he is able to sell your unit. Even you wouldn't know if he has sold your unit for next several years. Most of these main points would be written in the booking form as terms and conditions.

    If builders' intention are okay, then get this odone asap, but don't expect him to pay you any late penalty in case there would be any. Late penalty is based on the time(I think 36 months) from the day you sign the BBA.


    Hi Divjain

    Can you please give one live example where the Builder has cancelled the booking of the Buyer because BBA agreement was not signed……though
    1. Builder has given a proper allotment letter to the buyer
    2. Buyer has been making regular payments and same accepted by Builder.

    My intention is not to challenge your knowledge and experience but simply find it very amusing ……..
    I agree that since the BBA is not signed mutually Developer may refuse to agree to some terms which he has agreed upon verbally like late delivery fine payment etc etc but that anyhow in spite of having BBA many builders refuse or you have to really struggle to get with or without BBA…….

    Infact I have even heard that many Builders do not sign BBA agreement or rather the allotment letter itself is considered as BBA agreement and incase exclusive BBA agreement is required then they charge extra for it.

    BTW BBA Builder Buyer Agreement signing is mutual responsibity of both parties and one party alone cannot be considered as defaulter...... In the present case even Developer has not yet sent the signed BBA agreement......
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  • Originally Posted by Indomura
    Hi Divjain

    Can you please give one live example where the Builder has cancelled the booking of the Buyer because BBA agreement was not signed……though
    1. Builder has given a proper allotment letter to the buyer
    2. Buyer has been making regular payments and same accepted by Builder.

    My intention is not to challenge your knowledge and experience but simply find it very amusing ……..
    I agree that since the BBA is not signed mutually Developer may refuse to agree to some terms which he has agreed upon verbally like late delivery fine payment etc etc but that anyhow in spite of having BBA many builders refuse or you have to really struggle to get with or without BBA…….

    Infact I have even heard that many Builders do not sign BBA agreement or rather the allotment letter itself is considered as BBA agreement and incase exclusive BBA agreement is required then they charge extra for it.

    BTW BBA Builder Buyer Agreement signing is mutual responsibity of both parties and one party alone cannot be considered as defaulter...... In the present case even Developer has not yet sent the signed BBA agreement......



    Your points are very sensible and it makes complete sense. I booked a unit in LBG in December and got BBA dated Jan 26th. The logix people gave me original BBA and after i studied it was completely one sided...I wanted to clearfy on Delay Penalty clause and Service taxes they charge which were not mentioned on BBA. They replied on Delay Penalty Clause via email with which I was satisfied but didnt agree to include service tax breakup and amount in BBA. I couldnt take up with them on signatures on BBA as I was absorbed in some important works on family front. But next week I intend to meet the Senior VP Marketing and get it signed.

    It really doesnt feel good signing a very one sided agreement but as you rightly pointed we dont have any other option:(
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  • Hello Everyone,

    Thanks for sharing all the information under this thread.

    Please note that as a buyer we are entitled to scrutinize the BBA of Developer before making any payments, which we seldom ask from the developer.

    Mostly the BBA are one sided and if not signed, one must have adequate communications to prove your concerns for not signing that documents (not to mention registered post/ email with acknowledgement).

    Stick with projects of reputed builders

    you might also say that builder has refused to amend the contract but then do you have any communication to that effect?

    Keep polite and assertive communications with builder.

    Lastly, please understand that the staffs at the builder office are not aware due to their limited knowledge/young age excepting the senior people and these are the ones that give dubious statements which haunts the buyers. Please Please Please communicate/speak with the senior staff and avoid tele callers from their office who are sitting at lower levels with 5-10 grand.

    Cordially
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