Hopefully, the Regulator to be set up under the recent amendment to Real Estates Act will lay it down that all Agreements between builders and owners/buyers should conform to the specimen that gets formulated by him and includes clauses such as the following:
(1) All buyers, present and future should join an Association of Buyers
(2) The funds paid up by the buyers should be lodged in an Escrow A/c from which drawing is allowed only jointly by two or three of buyers authorized by all the buyers
(3) Any change in Design from that originally notified to the buyers and agreed to by them will require prior written permission from them; if the change is not acceptable to any buyer, the buyer should have the option to be out of the Agreement and be refunded the amount paid in to the Builder
(4) In case for any reason the builder is unable to complete construction within the stipulated time-frame the buyers will have the power to engage another builder to complete the construction more
(1) All buyers, present and future should join an Association of Buyers
(2) The funds paid up by the buyers should be lodged in an Escrow A/c from which drawing is allowed only jointly by two or three of buyers authorized by all the buyers
(3) Any change in Design from that originally notified to the buyers and agreed to by them will require prior written permission from them; if the change is not acceptable to any buyer, the buyer should have the option to be out of the Agreement and be refunded the amount paid in to the Builder
(4) In case for any reason the builder is unable to complete construction within the stipulated time-frame the buyers will have the power to engage another builder to complete the construction more
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I agree with the latest comment of Mr. Sudalai Ponnuswamy that a Bank be involved. But I am afraid that no Bank may like to take up the direct responsibility to be involved except through an 'Escrow' A/c. more
Dec 22
My only point is that Association should not be involved in money matters even with joint accounts because it is lakhs in dealing. I was in the employees association more than 3 decades and 1 decade I was the President of the Association. If bank is involved money and property is being safe for the buyers. more
Dec 22
By way of comment on the posting of Mr.Ponnuswamy it is stated as follows: Even if two or three buyers who can contact each other (with the help, if necessary and possible) of the builder who would generally be cooperative at least in the initial stages the others may come to know and join later. Moreover, once the Regulator stipulates the conditions proposed, the onus will be on the builder to get the Agreements signed by all the buyers who do not have to take the initiative on their own to involve other buyers. The Escrow Ac will be held with a Bank who will be responsible to make sure that the funds in the A/c will be utilized only for the construction of the Building. more
Dec 22
(1) All buyers, present and future should join an Association of Buyers is not a easy task because all buyers are not known to each one of them and where you find all the buyers, every one of them in a different corners, every one of them may not be possible to know each one of them in the present and future situation and forming the Association is advisable. All the buyers should entered into an agreement with the builder and the buyer should not make any kind of payment to the builder and he should tie up with the banker, the banker will supervise the builder's construction step by step and release the payment on your behalf. You should avail the bank loan for buying the property while handing over the property the buyer may close the loan on satisfaction. more
Dec 22
Apropos of Mr. N. Mohan's comment, I believe that ordinary buyers will not have the clout or competence to demand, obtain and study the various documents proposed by him. Such Documents may be called for and studied by the Regulator who may assign a rating to each Builder based on study of the documents. more
Dec 22
