Include this in clause 1 that, title in the undivided share in the Schedule ‘A’ Property vest in seller and have clear title free from attachments, encumbrance etc.

Sale deed must contain an indemnity clause wherein seller indemnifies you in case any claims are made

2) The VENDOR hereby agrees and undertakes to indemnify and save the PURCHASER harmless in the event of any defect in the title of the schedule property or any claims put forth either by the VENDOR herself, or his legal heirs, representatives, successors or anybody, claiming any right, title, under or in trust for the VENDOR and also to reimburse all such cost and expenses of litigation or in the event the schedule property or any portion thereof is lost to the PURCHASER as a result of defective title or breach of covenants by the VENDOR"

3) clause 1 and 2 will help you in case of dispute

Despite 1and2, in case things do not go as expected, you can't claim a refund from the builder since you're giving him an undertaking saying that you have no questions as regards to the title of the builder on this land which he's developing.

To overcome the above position, ask your builder to include an indemnity clause in this agreement which protects you from all kinds legal action w.r.t. to the legal defect in the title of this property.

Dear Sir,

No amount of verification do not prevent you from proceeding against the builder if you put to any loss. The vendor must have clear title before the selling a property otherwise it amounts to cheating and attracts the following offense.

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Section 415 in The Indian Penal Code

415. Cheating.—Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any proper­ty to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”. Explanation.—A dishonest concealment of facts is a deception within the meaning of this section. Illustrations

(a) A, by falsely pretending to be in the Civil Service, inten­tionally deceives Z, and thus dishonestly induces Z to let him have on credit goods for which he does not mean to pay. A cheats.

(b) A, by putting a counterfeit mark on an article, intentionally deceives Z into a belief that this article was made by a certain celebrated manufacturer, and thus dishonestly induces Z to buy and pay for the article. A cheats.

(c) A, by exhibiting to Z a false sample of an article, inten­tionally deceives Z into believing that the article corresponds with the sample, and thereby, dishonestly induces Z to buy and pay for the article. A cheats.

(d) A, by tendering in payment for an article a bill on a house with which A keeps no money, and by which A expects that the bill will be dishonored, intentionally deceives Z, and thereby dishonestly induces Z to deliver the article, intending not to pay for it. A cheats.

(e) A, by pledging as diamonds article which he knows are not diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money. A cheats.

(f) A intentionally deceives Z into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money. A not intending to repay it. A cheats.

(g) A intentionally deceives Z into a belief that A means to deliver to Z a certain quantity of indigo plant which he does not intend to deliver, and thereby dishonestly induces Z to advance money upon the faith of such delivery. A cheats; but if A, at the time of obtaining the money, intends to deliver the indigo plant, and afterwards breaks his contract and does not deliver it, he does not cheat, but is liable only to a civil action for breach of contract.

(h) A intentionally deceives Z into a belief that A has performed A’s part of a contract made with Z, which he has not performed, and thereby dishonestly induces Z to pay money. A cheats.

(i) A sells and conveys an estate to B. A, knowing that in conse­quence of such sale he has no right to the property, sells or mortgages the same to Z, without disclosing the fact of the previous sale and conveyance to B, and receives the purchase or mortgage money from Z. A cheats.

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Section 420 in The Indian Penal Code

420. Cheating and dishonestly inducing delivery of property.—Whoever cheats and thereby dishonestly induces the person de­ceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Sir if you have taken reasonable steps for verification and then agreed to this agreement even then if any issue arises out of the property then also you shall be eligible for the compensation as in case reasonable steps to check are taken then you are bone fide purchaser in that case and the agreement cannot restrict your right to claim compensation in event of any claim of third party. Further any agreement cannot restrict your legal right in view of Indian contract act.

A person who signs any agreement, cannot refute the same. However, an agreement and/or any document has to be read in whole and not a particular part thereof. In your case, your assumption and/or satisfaction of the title of the Vendors derives from the Clause 1 and 2. Any violations of the said Clauses also entitles you to ask compensation.

1. the clauses are fine

2. before the builder can commence construction on the land, the Corporation does a due diligence through its legal department about the title to the land being clear and marketable and only then sanctions the building plans submitted by the builder for making construction on the land

3. so if in future any person raises any claim or disputes the title of the owners to the land, firstly such person has to prove his case before the court

4. even if such person succeeds, his remedy will lie against the persons who projected themselves as true owners of the property

5. court passes its decision considering equity and fair play and justice

6. so if valuable third party rights are created in favour of several buyers, then court will definitely not order for demolition of the building which is already occupied and possessed by the flat buyers, unless the building itself has been constructed in violation of sanctioned plans and other approvals

Points 1 and 2 pertain to the purchase of property and legal validity of the vendor.

Point 3 is the covenant agreed by the buyer undertaking that he has fully satisfied himself about the genuineness of the property and the documents.

Though these are routine in nature, you always can initiate legal actions in case of any irregularity that may emerge at a later stage.