Must-have Documents from builder after Property Registration

Buying a house from a builder is a long drawn process which requires various documents to be submitted as well as received to/from representatives of different agencies/institutions. There are many documents that need to be submitted to the builder for purchasing property as well as to the bank/lender for obtaining a home loan. Similarly, there are various documents that the buyer has to obtain from the builder at various stages like before paying any money, for under-construction property as well as before possession of the residential unit.

Moreover, there are various documents that buyers must ensure they get from the builder after registration of the property and before its actual possession.

·  Allotment Letter

The Allotment letter is an important document that a buyer should obtain from the builder. It includes details regarding the property being sold by the builder. It also includes details regarding the project as a whole. Before obtaining the allotment letter it is imperative to discuss with the builder various details regarding the residence he is purchasing like the choice of floor or his preference with regards to the view from the house. This document is especially important if the buyer is planning to avail a home loan from a bank because it mentions about the amount that the buyer has already paid the builder. On the basis of this document, the bank can finance the remaining amount required.

·  Builder-Buyer Agreement

The Builder-Buyer agreement is an important document for both the builder and the buyer. It includes all the terms and conditions, clauses and legal implications for both the builder and buyer in case there is a default from either side. It is meant to protect the rights of either party. Some of the important points that are included in this document are the time frame of the project, the terms and clauses of payment, interest, penalties and default charges of the buyer, approvals and sanctions obtained by the developer to construct the project, approved layout plans and drawings, title and approval of the project etc.

·  Copy of Possession certificate

After the builder has provided all the amenities that he has promised at the time of purchase, the size of all the rooms and their different associated features are provided as promised, the house can be considered ready for possession. The buyer signs the possession certificate based on the criteria mentioned above and gives it back to the builder while keeping a copy of it.

·  Allotted Parking

It specifies the specified area that has been allotted to the buyer for parking his vehicle. It is also an agreement on the part of the buyer/allottee that he will not sell or transfer the parking space allotted to him.

·  Tripartite Agreement

Such an agreement is made in case the builder has taken a loan from a bank to develop the property. It literally means an agreement between three parties – the buyer, the bank and the builder. The agreement contains all relevant information related to the residence like the carpet area as well as the amount of loan that the bank has extended to the customer. It mentions about the possession date as well as the penalty clause, if any, and the rate of penalty. It also spells out the obligations of all the three parties involved in the agreement. Banks lend a loan against a security which in this case is the residential property. Since the residence is not in the buyer’s name until possession, the builder is also involved in this agreement with the bank.

·  Power Back-up details

This is included in the Builder-Buyer agreement. It mentions about the power back-up facility that the project provides and the source for the same. It may be a solar or battery powered power back-up. It also gives other details regarding the capacity of the power back-up device as well as if it is uninterrupted. If it is for a particular duration, it should mention the duration and the devices that can be used during that period.

·  Full payment break-up

It shows the break-up of all the payments made by the buyer to the builder towards possession of the property. It also states that there are ‘No Dues’ from the buyer towards the builder.