Under MOFA Agreement for Sale of Flat Must Include: Everything You Need to Know
If you`re a potential homebuyer in India, you`re likely to come across the term `MOFA agreement` during your research. But what does it mean, and why is it important? Let`s take a closer look.
What is MOFA Agreement?
MOFA stands for Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963. This act is applicable to the state of Maharashtra but has been adopted by several other states in India with some amendments.
The MOFA agreement is a legal document that should be signed between the builder and the flat buyer at the time of the sale of the flat. It is a type of agreement that outlines the terms and conditions of the sale, and the rights and responsibilities of both the parties.
What Must be Included in the MOFA Agreement?
The MOFA agreement is a crucial document that must be drafted carefully and diligently. It should include a few essential clauses to protect the interests of both the parties.
1. Details of the Flat: The agreement should include a detailed description of the flat, including its dimensions, location, and amenities. It should also mention the flat`s permission for construction, occupation certificate, and the builder`s title to the land.
2. Payment Terms: The agreement should clearly outline the payment terms, including the total cost of the flat, the payment schedule, and any penalties for delayed payments. It should also mention the terms of cancellation, refund, and transfer of ownership.
3. Delivery of Possession: The agreement should specify the date of delivery of possession and the builder`s liability for delay in possession. It should also mention the compensation that the builder will have to pay in case of delayed possession.
4. Maintenance Charges: The agreement should clearly state the maintenance charges that the buyer will have to pay after the possession. It should also mention the method of calculation and escalation of maintenance charges.
5. Dispute Resolution: The agreement should mention the dispute resolution mechanism, whether it is arbitration, mediation, or litigation. It should also mention the jurisdiction of the courts in case of disputes.
Why is the MOFA Agreement Important?
The MOFA agreement is important as it protects the interests of both the parties involved in the sale of the flat. It ensures that the buyer gets what they have paid for, and the builder fulfills their obligations.
The MOFA agreement also helps in resolving disputes quickly and efficiently, saving time, money, and hassle for both parties.
Conclusion
The MOFA agreement is a crucial document that must be drafted carefully to protect the buyer`s and builder`s interests. It should include essential clauses like details of the flat, payment terms, delivery of possession, maintenance charges, and dispute resolution.
As a potential homebuyer, you must ensure that the MOFA agreement is in place before making any payment. It is always advisable to consult a legal expert before signing the agreement to avoid any legal hassles in the future.