I am a new user of your forum. I am living in Coimbatore, South Tamil Nadu where I intend to buy a new flat with in the corporation limit,from a new promoter.I have made an initial payment as advance and now,a construction agreement has to be entered between the promoter and myself as the buyer.So, I kindly request you to advice me as to how the agreement wordings will be what all important points to be checked by me as new buyer? Note, this is the first time I am buying a new flat. HELP!
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  • Generally, the Construction Agreements are made by the Developers and those agreements would invariably one sided favouring the Developers. Therefore, please do not just go by the terms dictated by the Developer. Please take help of an able lawyer who has experience in this field (pls note that all lawyers may not have enough experience to handle this kind of work).

    Make sure you get a title report for the land (from a lawyer appointed by you and not from the lending bank's panels advocate - indepdent scrutiny is essential) and ascertain whether your developer has sufficient right to develop the property by verifying agreements, power of attorneys, etc. given by the landonwners. Check whether planning permission has been obtained from the appropriate authority. If it is not available, make suitable security arrangement in the construction agreement.

    Make sure, your construction agreement - stipulates time lines for completion of the building in time as per the sanctioned plans, prohibits the Developer from making any deviation, makes the developer pays money compensation for the delay, developer obtains completion certificate.

    These are only some of essential areas to be looked into. Your lawyer should be able to guide you properly.

    All the best.