Before You Sign: The Particulars RERA Says Your Agreement for Sale Must Contain
Section 13(2) of the RERA Act sets out the particulars every agreement for sale must specify, and Section 13(1) links the agreement to the ten per cent advance limit. A practical, clause by clause check for Bengaluru buyers before they sign and register.
The agreement for sale is usually the longest document a flat buyer signs, and often the one read least carefully. It arrives after the excitement of booking, when the allotment letter is in hand and the bank is asking for paperwork. Yet it is the document that fixes your payment schedule, your possession date and what each side pays if the other is late. Under the Real Estate (Regulation and Development) Act, 2016, it is also the document that unlocks most of your rights.
Section 13(2) of the Act lists what the agreement must specify. This guide turns that list into a clause by clause check for Bengaluru buyers, using the text of the Act from the Gazette copy of the RE(R&D) Act, 2016 hosted on the Telangana RERA portal. The Act is central law; Karnataka's RERA rules prescribe the actual form of the agreement, so read both together.
The short answer. Section 13(2) says the agreement for sale shall specify the particulars of development, including construction of the building and apartments, specifications, internal and external development works, the dates and manner of payments, the possession date, and the interest rates payable by promoter and allottee on default, plus anything else the rules prescribe. Section 13(1) bars a promoter from taking more than ten per cent of the cost without first entering into and registering a written agreement for sale. The trade-off: taking time to compare clauses may delay registration by days, but once signed and registered, these terms are the yardstick for every later dispute.
What does Section 13(2) say the agreement must contain?
It says the agreement for sale shall be in such form as may be prescribed and shall specify the particulars of development of the project, including the construction of building and apartments, along with specifications and internal development works and external development works; the dates and the manner by which payments towards the cost of the apartment, plot or building are to be made by the allottees; the date on which possession is to be handed over; the rates of interest payable by the promoter to the allottee and by the allottee to the promoter in case of default; and such other particulars as may be prescribed.
That is a short list, but each item maps to a question you should be able to answer from the document alone. If you cannot find the answer in the draft, ask for it to be added or clarified before you sign. Our earlier piece on the agreement for sale versus the conveyance deed for a new flat explains how this document relates to the sale deed you sign later.
Why does registration of the agreement matter?
Because the Act ties larger payments to it. Section 13(1) says a promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot or building as an advance payment or an application fee from a person without first entering into a written agreement for sale with that person and registering the agreement under any law for the time being in force.
In practice, this means payments up to the ten per cent line can be collected before the agreement, and payments beyond it should follow a registered agreement. If a demand letter for the next instalment arrives before the agreement is registered and you have already paid ten per cent, that is a point to raise in writing.
Where can I check the agreement against what the builder filed with RERA?
In the registration file. Section 4(2)(g) requires the promoter's application for registration to include a proforma of the allotment letter, agreement for sale and conveyance deed proposed to be signed with allottees. Ask the promoter for that proforma, or check whether it is available on the project's RERA page.
Compare it with the draft you are offered, clause by clause, with special attention to the possession date, the payment schedule and default interest. A difference is not automatically wrong, but you are entitled to understand why the terms changed between what was filed with the regulator and what you are asked to sign.
Which clauses deserve the closest reading?
Four clauses carry most of the weight. First, the possession date: Section 18(1) frames your right to withdraw with a refund and interest, or to stay and receive monthly delay interest, around completion or possession in accordance with the agreement or by the date specified in it. A clearly stated date matters more than a vague promise of possession within a period after some future event.
Second, the payment schedule: Section 19(6) obliges you to pay in the manner and within the time specified in the agreement, and Section 19(7) makes you liable for interest at the prescribed rate on delay. Make sure each instalment is tied to a clear trigger, such as a construction stage, and that the agreement says how you will be notified.
Third, default interest on both sides: Section 13(2) requires the rates of interest payable by the promoter and by the allottee in case of default to be specified. Read both and check that they are consistent with the Act and the state rules. Fourth, the description of what you are buying: the carpet area, as defined in Section 2(k), along with exclusive balcony, verandah and terrace areas, and the specifications and amenities.
Here is a quick map of the main clauses to the Act.
| Clause in your agreement | Provision it connects to | What to check |
|---|---|---|
| Possession date | Section 13(2) and Section 18(1) | A specific date, not an open ended period |
| Payment schedule | Section 13(2) and Section 19(6) | Each instalment tied to a clear stage and notice |
| Default interest | Section 13(2) and Section 19(7) | Rates for both promoter and allottee stated |
| Unit description | Section 2(k) and Section 4(2)(h) | Carpet area and exclusive balcony or terrace areas |
| Mortgage after agreement | Section 11(4)(h) | No new charge on your unit after signing |
What protections start once the agreement is signed?
Several. Section 11(4)(h) says that after the promoter executes an agreement for sale for an apartment, it shall not mortgage or create a charge on that apartment, and if any such mortgage or charge is created, it shall not affect the right and interest of the allottee who has taken or agreed to take it. Our explainer on Section 11(4)(h) and builder project loans covers what this means in practice.
Section 11(5) says the promoter may cancel the allotment only in terms of the agreement for sale, and the allottee may approach the Authority if aggrieved by a cancellation that is not in accordance with the agreement, unilateral and without sufficient cause. Section 14(2) limits changes to sanctioned plans and specifications once disclosed to you. All of these become easier to rely on when your agreement is clear and registered.
When you shortlist, a PropNewz project profile such as Godrej Woodland on Sarjapur Road can help you identify a project, but the agreement in front of you and the RERA filing are the documents to compare.
What costs and duties does the agreement put on me?
The agreement is also where your own obligations become concrete. Section 19(6) says an allottee who has entered into an agreement for sale under Section 13 shall make the necessary payments in the manner and within the time specified in it, and shall pay at the proper time and place their share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges, if any. Section 19(8) adds that these obligations and the liability for interest may be reduced when mutually agreed between the promoter and the allottee.
Two later duties are worth noting now, because the agreement may refer to them. Section 19(10) says every allottee shall take physical possession within two months of the occupancy certificate being issued, and Section 19(11) says every allottee shall participate towards registration of the conveyance deed under Section 17(1). Read the agreement's possession and handover clauses with those two timelines in mind, and budget for the charges the agreement assigns to you.
If you want a broader view beyond the RERA particulars, our earlier guide to builder buyer agreement clauses to read in Bengaluru covers commercial terms such as escalation, parking and transfer charges.
What should I do before signing and registering?
Work through these steps with the draft agreement and the RERA filing side by side.
- Ask for the proforma agreement filed under Section 4(2)(g) and compare it with your draft.
- Find the possession date and confirm it is a specific date, not an open ended period.
- Check that each instalment is tied to a clear trigger and that notice terms are stated.
- Find the default interest rates for both sides and note them on a single page.
- Confirm the carpet area and any exclusive balcony, verandah or terrace area for your unit.
- Check that the specifications and amenities listed match the brochure and sanctioned plans you were shown.
- Make sure the agreement is registered before you pay beyond ten per cent of the cost.
Frequently asked questions
What must an agreement for sale specify under RERA?
Section 13(2) says it shall specify particulars of development including construction of the building and apartments, specifications, internal and external development works, the dates and manner of payments, the possession date, the rates of interest payable by each side on default, and other particulars prescribed by rules.
Does the agreement for sale have to be registered?
Section 13(1) says a promoter shall not accept more than ten per cent of the cost as an advance or application fee without first entering into a written agreement for sale and registering it under the law in force. Payments above that level should follow a registered agreement.
Where can I compare the agreement I am offered?
Section 4(2)(g) requires the promoter to file a proforma of the allotment letter, agreement for sale and conveyance deed with its RERA registration application. Ask for that proforma and compare it with the draft you are given, noting any change to dates, payments or default interest.
Can the builder mortgage my flat after the agreement is signed?
Section 11(4)(h) says that after executing an agreement for sale, the promoter shall not mortgage or create a charge on that apartment, and if one is created it shall not affect the right and interest of the allottee who has taken or agreed to take the apartment.
Last updated 2026-10-28. PropNewz Team.
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