India's top court advises Centre to develop model buyer-builder agreement after chinks emerge in RERA model

Builder-Buyer Agreement: Supreme Court has advised the central government to develop a model buyer-builder agreement that can be implemented throughout the country.

While Real Estate Regulatory Authority (RERA) has already developed a uniform agreement model, the current development is in the wake of problems being faced by the homebuyers in understanding the nittty gritties of the agreement.

The conditions are written down in the agreement in a legal and technical terms and at times it becomes a bit difficult for the common people to understand its meaning. Due to this, it has often been witnessed that the builder time and again convinces the buyer into an agreement that suits his purpose.

RERA by looking after the convenience of the homebuyers all over the country brought out its own model. The states can execute this with some changes which they consider to be suitable.

The Supreme Court has come forward to do away with this kind of misery of the homebuyers.
As per the existing rule, the size of the property, price and the payment details are included in the agreement. Furthermore, the maintenance, electricity, common facilities and more are also mentioned in the agreement.

Now, there are certain conditions in the agreement that pose problems for the buyers in future. In the agreement, it is written that the buyer will have to pay a penalty if he fails to pay on time . However, there is no mention of the fact that if the builder fails to deliver the property in time, then he will have to provide compensation.

Furthermore, regarding the construction of the building also, there is nothing clear from the builder regarding the quality of the materials used for the building.

Amidst this situation, if the buyer-builder agreement as recommended by the Supreme Court comes into place all over the country, then there will be some stability in the real estate sector and the home buyers will also be not duped so easily.