An indemnity bond is a vital term in the mortgage and loan sector. It is basically an obligation that safeguards any lender if any borrower violates the loan terms and conditions. This bond is made on a stamp paper with a certain monetary value that varies across States.
Key points about indemnity bonds
Here are some aspects that are worth knowing about:
• Indemnity bonds are sureties offered by those signing contracts/undertakings. They assure that they will incur losses in case of any breach of contract.
• Hence, if the person has an obligation to execute contractual commitments but does not, the lender can legally recover the damages/losses arising due to the default.
• The concept comes from indemnity or Indemnis in Latin which means being free from loss/damage or being unhurt.
• Based on Section 124 of the Indian Contract Act (1872), the indemnity bond is thus the agreement between two parties/individuals. One person agrees to make payments for damages/losses caused to the other due to his/her violation or the agreement or conduct.
• Indemnity bonds are often necessary while transferring property and borrowing funds.
• The bond will be imposed if any terms or conditions are infringed in a contract.
What are some other vital things about indemnity bonds?
Indemnity bonds are helpful since you can restructure them to cover losses that are unexpected. Both parties will be in the loop about damages and compensation that is payable under specific circumstances. The first parties are always safe from losses in case of any contract breach/violation. These contracts are executed on the basis of mutual trust between individuals or parties. The bonds only cover losses linked to the contract or agreement. All terms that are considered in the agreement should be legally admissible for the indemnity bond to be valid in case of the breach.
A building code is a vital term in the real estate industry. Knowing more about the same is essential if you are a developer or homebuyer.
What is meant by a building code?
A building code is a set of specific regulation and guidelines that help regulate construction activities. This is the set of laws that mention how buildings should be constructed or designed. These regulations ensure that the minimum welfare and safety standards of building residents are maintained. The code encompasses development requirements and administrative strictures.
What are the provisions of the Indian Building Code?
The Indian National Building Code (NBC) was first released in the year 1970. Some of its key provisions include the following:
• Structural Safety
• Easy access for differently-abled citizens and senior citizens
• Life and fire safety
• Earthquake resistant building design
• Usage of alternative techniques for construction
• Solid waste management
• Eco-friendly construction techniques including rainwater harvesting and solar power
Why are building codes important?
Building codes set the minimum safety and development standards that developers have to abide by. Codes contain guidelines relating to the welfare of building occupants along with the structural aspects like room sizes, wall assemblies, floor plans, foundations, roof structures, staircase design and even the electrical and mechanical assemblies including the drainage system, lighting, plumbing, and fixtures.
Building regulations have been frequently revised in India ever since they were notified. The first such modification took place in 1983, followed by instances in 1987 and 2005. The Central Government also revised the national building code in 2017 for ensuring adherence to the highest construction quality standards. Builders are now directly liable for the safety of their buildings. The code has multiple clauses with regard to using innovative building technologies and materials to help the Government achieve its housing targets. The revised building code also specifies the updated life and fire safety regulations, particularly for high-rises.
