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SC Judgment states Buyers will have to forfeit in payment if remaining instalments
are not made on time
Make sure that you read the agreement carefully before you buy a flat and sign on the dotted line.Recently in Delhi, a Buyer
lost Rs. 7 Lakh to a Builder after he was unable to pay the rest of the amount
for the property. As per on October 18, the Supreme Court Judgement, the
Builder had the right to keep the initial amount paid and even cancel the deal
since the Buyer had failed to make the payment on time. The property was worth of
Rs. 63 Lakh.The Purchaser of an immovable property could forfeit his money if
he fails to pay the remaining sum, the apex Court said.
The Realty Experts
believes the Judgment could set a dangerous precedent. “Builders who aren’t
Professional could collect earnest money and then come up with some frivolous
excuses claiming that the Buyer didn’t stick to the agreement, and thus call
off the deal and forfeit the money.
The agreement holds the
key to the deals. The Buyer will now have to be very cautious before signing
and registering an agreement. Even a simple mistake could cost him not only his
money but even the deal. This helps the Builders to save themselves from Buyers
who give a small amount of money and then not pay the rest, because of which
the Builder’s project gets stuck.The agreement executed by the total amount
from the Purchaser should be in conformity with the Law of the land.
A Builder has no right to
collect more than 20 percent of the total amount from the Purchaser before
executing the registered agreement.The Builders cannot collect more than 30
percent thus, aggregating 50 percent unless he completes the construction of
all slabs of the building to be sold. Such rules should be read before signing an agreement.
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