5 Crucial Clauses You Must Include in the Home Buying Process in Thrissur

Posted onApr 26, 2024

The real estate investment strategies in thrissur indicate that the time is right to invest in property. But there are several things you need to consider before you take the plunge. The builder, the locality, your budget, and so on. Even after you have finalized the property, you need to have an airtight home purchase agreement.

What is a sale Agreement?

This is a document signed by the buyer and seller of property, defining the term and conditions of the sale. It can be enforced legally, and its importance dictates that it must be drafted meticulously. This way, you can ensure that it is unambiguous and transparent. In fact, it’s one of the most important things to remember before purchasing flats in Thrissur. There are 5 clauses you must ensure to include to protect yourself.

1. The Indemnity Clause

This helps protect buyers and sellers against loss and should be carefully drafted. As several parties are often involved in real estate transactions, legal complications can arise. Indemnity clauses consider possible negative outcomes and include the following in the agreement - categories of loss, the extent of liability, and the liability cap.

2. The Penalty Clause

Both main parties to the sale must be accountable, as real estate transactions means a lot of money changes hands. It is essential to have mechanisms in place in case either party pulls out:

• Agreement termination - if either pulls out after the booking amount is paid, this defines a penalty structure
• Timely payments - buyers who don’t pay the instalments on time must be penalized
• the agreement must include penalties for buyers who don’t pay on time
• Project delays -penalty is defined for builders who don’t stick to delivery schedules
• Adhering to plans - setting penalties for developers who don’t adhere to the approved floor plans
• Quality - penalty to be paid by developers if the construction quality is not up to par

3. Right to Call Off Agreement

This is to protect buyers from excessive financial pressure who may have to pull out of the deal because of exigent circumstances like:

• Bank loan being rejected
• Seller not furnishing mandatory property records
• Seller not furnishing requisite legal documents at the time of contract execution

4. Outstanding Dues

The buyer must check if there are any dues outstanding on the property; the seller may have taken a loan to purchase the property. It must be ascertained that all such dues are cleared before the sale so that there is stability and clarity in the transaction.

5. Unique Clause

Think of possible situations that can arise and the potential impact, and include them in the unique or special clause. Examples include due dates for instalments, deposit amount and so on. It is important to mention the possible impact on both buyer in seller in those situations and provisions for remedy or penalty.

Conclusion

A properly drawn up purchase agreement will help ensure a smooth property transaction, transparency in the deal, and a hassle-free process that holds everyone accountable and protect their interests too. The city is the cultural capital of Kerala and is an important financial hub, offering numerous benefits of real estate investment in Thrissur.

Nature, culture, modernity, and tranquillity amalgamate to offer a unique living experience.

There is a very high demand for real estate in Thrissur thanks to the rapid growth of infrastructure, and opportunities for business and employment.

Varma Homes is one of the most reputed builders of Kerala, bringing you premium 2 and 3 BHK flats in one of the top residential areas of Thrissur, Poochatty. Varma Homes is known for transparent dealings and consumer-centric approach, ensuring that you have a smooth and enjoyable purchase experience.