Today, a lot of people prefer renting a house as opposed to actually buying one as that is more convenient. However, owning your residence and setting down roots for the future is the more stable option in the long run. The process of buying your own home may seem complicated and daunting to most people.
You must make a careful study of all documents involved and be familiar with the terms used. The home buying agreement is a legal contract between a seller and buyer that outlines the sale’s terms and conditions. This document also includes the purchase price and has five significant clauses included within it, which are:
Indemnity Clause – This is a clause that prevents any potential loss and includes every scenario that can cause damage. This is a safety measure as there are a lot of things that can go wrong in property sales.
Penalty Clause – This is a clause inserted in the document that is binding on the seller and the buyer. This details a penalty amount should one party back out of the deal.
Right to Call Off the Agreement – This is a provision that is inserted for the buyer of the property. This enables the buyer to call off the sale without financial penalization. There are special circumstances for this, including non-approval of bank loans, failure to provide legal documents, and property default.
Dues – If there are outstanding dues owed by the seller of the property, these have to be cleared before the sale. It is imperative to include this clause in the agreement.
Special Clauses – This unique clause must be included in the agreement and takes into account special conditions that may occur. For example, this will detail that the deposit money will be due only after completion of standard checks and formalities.
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