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Builder Property Transaction

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Builder Buyer Agreement

A builder buyer agreement is a document which specifies the modalities, conditions and clauses between a builder and a homebuyer. Clauses of the builder buyer agreement are related to the property concerned, delivery details, and conditions related to default and delay in project delivery among other clauses. The builder must get the Completion Certificate even if the flat owners take possession before issuance of such certificate.

Transfer of under-construction properties

The transfer of an under-construction property is subject to multiple factors, including the project's construction status, the buyer's home loan profile, the reputation of the builder, payment methods and the transfer charges.

Conventionally, a tri-party transfer deed is used to transfer an under-construction property. In this scenario, the seller and the buyer sign the deed while the builder acts as the confirming party.

  • Mother deed or sale deed
  • Khata certificate & extracts
  • Allotment letter & possession letter
  • Receipts of payment to developer
  • Latest tax receipt of property
  • Encumbrance certificate
  • Construction plan & sanctioned layout plan

At Legal Assure, we provide diverse real estate legal services to our clients.

Builder Property Transaction

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Frequently asked questions

Yes, this is referred to as 'flipping a property'. This technique is used by many investors to earn returns.

Yes, but taking a loan on an under-construction property does not result in the disbursement of the entire loan amount to the builder at once. Disbursement occurs in phases as the builder completes each stage of construction.

The builder may or may not return the transfer fee paid by the assigner if the new buyer backs out. To resolve this issue, you should request that the builder keep the fee until a new buyer can be found.

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