Stop! Before You Sign a Property Deal, Read This
Before signing any property papers, it is very important to understand the builder agreement properly. This agreement decides how much you will pay, when you will get possession of the flat, and what the builder is responsible for.
Buying a home is not just about money; it’s an emotional decision too. Many buyers focus on price, location, and amenities but skip reading the legal documents carefully. This small mistake can later lead to delays, disputes, or refund problems.
The builder buyer agreement is not just a formality. It protects your rights as a buyer and clearly mentions what the builder must deliver. Understanding this document can save you from future stress.
Buying a home is an emotional investment, not just a financial one. Purchasing a house is a major choice. However, buyers may sometimes miss important legal details when making their choice. This can lead us to overlook the important legal aspects of the transaction.
The BUILDER BUYER AGREEMENT is not just a piece of paper. It protects your rights as a buyer. It helps prevent future disputes and outlines what the builder must do.
A Builder Buyer Agreement is a legal contract. The property builder and the homebuyer sign it when booking a property.
It clearly explains the terms and conditions of selling property. This includes construction details, total cost, payment schedule, possession date, and cancellation or refund terms. This agreement follows RERA, i.e., the Real Estate Regulation and Development Act, 2016.
Table of Content
- Importance of legal agreements in property deals
- What is the buyer-builder agreement?
- Major components of buyer-builder agreement
- When is the builder-buyer agreement signed?
- What actually are the obligations of the builder and rights of the buyer that we keep discussing?
- Common mistakes buyers shoulder avoid while entering the builder-buyer agreement
- Here’s how to verify the agreement while safeguarding your interest.
- How to deal with the breach of an agreement?
- Conclusion
- FAQs
What Is a Builder Buyer Agreement?
A builder buyer agreement is a written contract between you and the builder when you book a flat. Many people also call it a flat agreement or builder agreement.
It clearly explains:
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Flat details
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Total price and payment schedule
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Possession date
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Refund and cancellation rules
This agreement is governed by RERA, which means the builder must follow clear rules and timelines.
Why Is the Builder Agreement So Important?
A properly written Buyer- builder agreement avoids confusion. later,
It makes sure:
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You know exactly what you are paying for
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The builder cannot change terms without your consent
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Both sides are clear about their responsibilities
Without a clear agreement, buyers may face hidden charges, possession delays, or construction quality issues.
What Does a Builder Buyer Agreement Usually Include?
A standard builder buyer agreement format usually covers:
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Project details: Project name, location, and RERA number
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Flat details: Unit number, carpet area, and amenities
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Total cost: Base price, taxes, and extra charges
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Payment plan: When and how payments will be made
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Possession date: Expected handover date with grace period
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Cancellation rules: Conditions for refund or cancellation
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Construction quality: Materials and fittings promised
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Penalty clause: What happens if either side defaults
Many buyers also ask for a builder buyer agreement PDF in advance so they can read and understand these points calmly.
When Do You Sign the Builder Buyer Agreement?
The builder buyer agreement is usually signed after you book the property and before you pay more than 10% of the total price.
Here’s how it usually happens:
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First, you show interest and receive the brochure
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Then, you pay up to 10% as booking amount
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After that, the builder signs the agreement with you
Under RERA:
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Builders cannot ask for more than 10% before signing
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The agreement must include all key project details
Legal Rights of Buyers and Duties of Builders
Rights Of Buyers
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Get possession on time
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Refund with interest if there is delay
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Regular updates on construction
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Fixing of defects up to 5 years
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No major changes without your approval
Builder’s Responsibilities
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Register the project under RERA
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Deliver what was promised
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Follow the agreed timeline
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Fix construction defects
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Communicate transparently
Common Mistakes Buyers Should Avoid
Many disputes happen because buyers:
- Sign the agreement without legal review
- Ignore possession and delay clauses
- Don’t check RERA registration
- Miss hidden charges
- Accept unclear refund terms
- Don’t understand the difference between builders and developers
How to Check the Builder Buyer Agreement Safely
Before signing:
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Match brochure promises with agreement clauses
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Check possession date and penalty for delays
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Verify total cost and extra charges
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Confirm refund and cancellation terms
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Always get the agreement reviewed by a professional
What If the Builder Breaks the Agreement?
If the builder does not follow the agreement:
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You can file a RERA complaint
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You can approach consumer court for poor service
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You may ask for compensation or refund with interest
Conclusion
Signing a builder buyer agreement is a big step in your home-buying journey. Take time to read it carefully, ask questions, and understand every clause. A little attention at this stage can help you avoid delays, disputes, and unnecessary stress later.
If you have any doubts about your builder agreement or are facing issues related to clauses, possession, or refunds, you may seek professional guidance to understand your options clearly before taking the next step. You can also explore detailed guidance on handling buyer–builder disputes and related legal concerns to gain better clarity on possible solutions.
FAQs
- Is RERA approval of the buyer-builder agreement mandatory?
Yes, under the RERA act, all agreements must follow its format and content for registration.
2. Is it possible to modify the contract?
Ans. You can ask for changes before you sign the agreement. Once signed, any changes require mutual consent from both parties.
3. Is it possible to terminate the agreement later?
Ans. Yes, but the cancellation charges will be applied as per the terms of agreement. In case of a major breach by the builder, you can claim a refund.
4. What documents should accompany the agreement?
Ans.
- Project Brochure
- Allotment letter
- Receipt of payments made
- RERA registration certificate
- Approved building plan
