Part II: Everything you Need to Know about Sale Agreement!

Continued From Part I: Everything you Need to Know about Sale Agreement!
What can one do once a sale agreement is lost?

In case of Resale – fresh agreement can be signed, with reference to the initial agreement, which was lost, since this is a short-term agreement executable within 30-90 days in case of resale
In case of Builder Sale – It is important to ensure this agreement is stored safely. In case of loss of this agreement, the following are the recourse:
a. Builder agreements are always made in 2 original copies, 1 for the Builder & 1 for the Buyer
b. Based on this, the Buyer can get a certified true copy from the Builder
c. Apart from this, the Buyer has to do the following, as legal process, as this is the primary document for the apartment that is in question:
i. Lodge a Police complaint in the place of actual loss of the document – FIR
ii. Make an affidavit (self-declaration) that is to be notorised
iii. Release a newspaper advertisement in place of actual loss – 1 in English daily & 1 in Vernacular news paper, intimating the loss of document & if the same is found by anyone, the same needs to be returned back to the Buyer; this is to be done by giving 10 days notice
Post this proceed with the Certified True Copy, and all other documents in original, which will form part of the title documents for the Property.

What happens if the seller ‘defaults’ the agreement? Are there any clauses to protect buyers’ interest?
In order to safeguard Buyer’s interest, first necessary due-diligence should be done on the Property, the Seller. Post this at the time of entering into agreement ensure the following:
i. The time for completion of the registration should be between 30-60 days or maximum stretch to 90 days, so that ensuring specific performance within short period of time…
ii. Cancellation clause should be kept at atleast 5% of the Agreement value
iii. Ensure the agreement is franked for 0.1% of the Transaction Value, thereby recording the prospective sale with the govt., so that any legal recourse is fully in tact
iv. By this, the Seller can be first prevented from making the sale to a new party or enter into agreement with another party…in meanwhile, can proceed with Legal claim with the Compensation

What are the important things that one must check during possession of an apartment?
a. Ensure all basic fittings & requirements that were to be part of the apartment, as promised by the Builder in his apartment specification is delivered, else do not take possession. This rejection of possession should be made in writing with due acknowledgement from the Builder. Also take time frame/ revised schedule for completing the pending work & handover of possession
b. In case of resale, ensure an Inventory made at the time of Agreement is delivered. The same can be verified before proceeding to registration at designated Sub-registrar office.
What the important documents that one gets during possession? Are there any payments to be made during possession?
a. In case of Builder sale, the standard format provided by Builder is the document, whereby you will acknowledge that the apartment was taken possession by you after satisfying that the same is in order & as per specifications agreed. So it is the responsibility of the Buyer to inspect & be satisfied with the finished product.
b. In case of resale, the aforesaid inspection would have to be carried out by the Buyer prior to registration. Note that since the apartment is being sold on AS-IS-WHERE-IS basis, no repairs would be done by the Seller, except for structural related repairs.
c. There would be no payment due at the time of possession, as in both cases, possession is arranged or given only after completing all payment processes.

Ultimately, the law is BUYER BEWARE, hence it is the responsibility of the Buyer to ensure that what is being bought is as per his requirement & all the deliverable are actually delivered, as per schedule. Also before entering into agreement, it is imperative that the Buyer understands the entire process thoroughly, clearly fix responsibilities for each aspect of the actual purchase process, so that all ambiguities are removed upfront from the transaction. This would ensure minimum issues in actual performance of the process.