Agreement to sale Key Points

 

Agreement to Sale is an important document represent  the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment. Being an important document in the sale transaction, it enables the process of sale to go through without any hurdles. All the terms and conditions included in the agreement of sale must be understood thoroughly by both the parties and obeyed throughout the sale process till the time the sale deed is made. Agreement of sale is the base document on which the sale deed is drafted.

Agreement to sale cover below mentioned points

1)    History of document:- In which promoter/developer need to mention whole documentation record of the land with document number. Anyone can demand copy of the mentioned document to. developer/promoter  

 

2)    Payment detail:- Agreement to sale contain total payment detail.

3)    Carpet Area :- The promoter/developer shall confirm the final carpet area that has been allotted to the Allottee after the construction of the building is complete and the occupancy certificate is granted by the competent authority, by furnishing details of the changes, if any, in the carpet area. Ever since RERA Act 2016 has been implemented, the builders have been instructed to sell the flat, apartment, or building based on the carpet area.

As per the definition, Carpet Area means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment. , the expression “exclusive balcony or verandah area” means the area of the balcony or verandah, as the case may be, which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee; and “exclusive open terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee.

A)    Common Areas :- Areas developed by the builder in a real estate project for the common use of all the allottees. Eg. Staircases, lifts, gym, swimming pool, parks, footpath, etc.

B)    Exclusive verandah or balcony area:- Verandah or balcony area permanently affixed to the flat or apartment of the buyer

C)    Exclusive open terrace area:- Open terrace area permanently affixed to the flat or apartment of the buyer

 

 

4)    DELIVERY OF POSSESSION :- Every Buyer need to check date of possession which is mentioned in the agreement. It is a final date for delivery of the possession. In case a builder fails to deliver the project within the mentioned date, the buyer can move to a court and send a legal notice to the builder under the RERA Act. The builder is required to pay 10% interest on the property’s value to the owner. Ideally, six months should be the maximum grace period, from the date of possession specified in the agreement. As per the Maharashtra Ownership of Flats Act, 1963 (MOFA), the exact date of possession should be disclosed in the agreement of sale.

 

5)   Defect Liability :- Once the Apartment is ready for use and occupation, the Promoter shall send a written intimation/notice to the Allottee, about the same. Thereafter, the Allottee shall be bound to take the possession of the said Apartment within 15 days from receipt of the written intimation/notice. If the Allottee brings to the notice of the Promoter, any structural defect in the said Apartment or in the said Building, within the period of 5 years from the date of handing over the said Apartment to the Allottee, then wherever possible such defect shall be rectified by the Promoter at his own cost. In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects.

 

 

a.       MAINTENANCE :- In some real estate projects, the builder commits to maintain the projects number of years initially, and he recovers a maintenance charge for this, payable by the purchaser/allottee either in lump-sum or in instalments. Maintenance charges are compulsory in every new apartment. It is an integral part of the contract between the builder and the buyer. Generally maintenance charge is higher in commercial properties than residential ones. These maintenance costs can be related to any cost of managing and maintaining the commercial property.