Model builder-buyer agreement: Buying a home can get easier soon; here’s why

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In order to speed up the home-buying process and safeguard customers from potential abuses, among other things, the government has decided to form a committee to work on a model buyer agreement, a top government official said on Tuesday, according to a PTI news report.According to the PTI, Consumer Affairs Ministry Secretary Rohit Kumar Singh told reporters that the committee, which will include representatives from the Ministry of Consumer Affairs as well as judges, national and state consumer commissions, various consumer bodies, and lawyers, is anticipated to be established within the next three months.

The representative had previously spoken at a round table discussion on “How to Effectively Redress the Grievances Relating to the Real Estate Sector” that had been organised in the city by the Department of Consumer Affairs in collaboration with the Government of Maharashtra, reports PTI.

If the contract between a builder and a buyer is standardised and uniformity is created, the issue (conflict between the home buyers and the developer) could be handled to a significant extent, added further.

It should be a unique document that is relevant throughout the country, and then it might be able to fix the problem to some extent, Singh said.

“So we have decided to form a committee and a model agreement document between the buyer and the seller, who is the builder,” Singh said.

“We will develop this model agreement, of course, in consultation with all stakeholders (and) then we will submit it to the Supreme Court and send it to all the states,” he said.He stated that some states already have a model agreement in place and that the Supreme Court has also ordered that there be one for the entire nation.

Almost 5.5 lakh complaints are currently outstanding in the nation’s consumer courts, with over 54,000 of those claims being specifically related to the housing industry, according to Singh.

According to the ministry, the backlog of cases emphasises the value of instant justice and streamlining the procedure for homebuyers.

The main issue was identified as being the delay in giving homebuyers possession of the property, the lack of compensation for this delay, biassed, unfair builder-buyer agreements, the failure to provide amenities as agreed upon, and deceptive marketing tactics used by developers and influencers to attract buyers, reports PTI.

What is a builder-buyer agreement
A builder buyer agreement is a document which specifies the modalities, conditions and clauses between a builder and a homebuyer. The builder buyer agreement format as per RERA lays the terms regarding the layout of the overall project, unit to be allotted to buyer, additional rights, conditions for cancellation of agreement, and the list goes on.
The Builder Buyer Agreement certifies the concerned property is transferred in the name of the new owner, and this transfer is subject to mutually acceptable terms and conditions. The Builder Buyer Agreement governs the entire sale of the property. It includes clauses, annexures, conditions and peculiarities about the sale or transfer of property.

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