Builder-Buyer Agreement: The Clauses Every Bengaluru Buyer Must Check
A clause by clause guide to the RERA builder-buyer agreement for Bengaluru buyers, covering carpet area, price, possession date, delay interest and defect liability.
A first time buyer in Sarjapur was handed a thick builder agreement and told, warmly, that it was standard and everyone signs it as is. He almost did. Then he noticed two things on a careful read: the possession date was written as merely tentative, and the interest the builder would pay for a delay was a fraction of the interest he would owe if he was late with a payment. Those were not standard terms; they were one sided terms dressed up as routine. Reading before signing turned a lopsided contract into a fairer one.
The short answer. The builder-buyer agreement, formally the agreement for sale, is the contract that fixes what you are buying and on what terms, and under RERA it must follow a prescribed form and be registered before you pay more than 10 percent. The trade-off to know: builders often present a draft tilted in their favour, but many protections, such as the carpet area, a firm possession date, symmetric delay interest, and a five year defect liability, are your right, so read every clause, question the unfair ones, and never treat the draft as unchangeable.
Why does the builder-buyer agreement matter so much?
It matters because this single document governs almost everything that can go right or wrong in your purchase. The agreement for sale records the flat you are buying, its carpet area, the price, the payment schedule, the date of possession, and the consequences if either side fails to keep its word. Once you sign and register it, its clauses, not the sales pitch or the brochure, are what a court or the regulator will look to if a dispute arises.
Because so much rides on it, the agreement is also where a careless buyer can quietly sign away protection. A vague possession date, an unfair delay clause, or a hidden right for the builder to change the plans can all sit in dense paragraphs that look ordinary. Reading the agreement closely, and insisting on fair terms before you sign, is one of the highest value hours a buyer will ever spend. It is far easier to negotiate a clause before you sign than to fight it afterwards, because once your signature is on a registered agreement, the burden shifts to you to prove that a term is unfair rather than to the builder to justify it.
Is the agreement for sale governed by RERA?
Yes. Under RERA the agreement for sale must follow the prescribed form and be registered, and the builder cannot take a large advance before it is signed. Section 13 of the Real Estate (Regulation and Development) Act, 2016 bars a promoter from accepting more than 10 percent of the cost of the flat as an advance without first entering into a written, registered agreement for sale. So if a builder wants 20 or 30 percent before giving you a proper agreement, that demand runs against the law.
This matters because it means you are entitled to a real, written contract early, not just a booking receipt and promises. The prescribed agreement is meant to carry the essential terms in a standard way, which makes it harder for a builder to bury unfair surprises. Insist on receiving and reading the full agreement for sale before you cross that 10 percent line, since that is exactly the moment the law intends the contract to be in place.
Which clauses must you check on carpet area and price?
Start with the two clauses that define what you are paying for and how much: the carpet area and the price. The agreement should state the RERA carpet area of your specific flat, not a super built-up figure, and it should tie the price to that carpet area. Match the carpet area written here against the figure declared for the project with the regulator, so the number in your contract is the number on the record.
Then check that the total price, the taxes, and every other charge are itemised, along with a clear payment schedule linked to construction stages rather than to arbitrary dates. Watch for open ended clauses that let the builder add unspecified charges later. A price that is fully broken down, and a schedule tied to visible progress, protect you from paying ahead of the work or being surprised by extras near possession. Pay particular attention to how charges such as club membership, parking, maintenance deposits, and infrastructure fees are described, since these one time extras can add several lakh rupees and are easiest to challenge while the agreement is still a draft.
What should the possession date and delay clause say?
The possession clause should give a specific date, and the delay clause should make the builder pay you fair interest if that date is missed. Be wary of language that makes possession merely tentative, or that stretches the date with vague grace periods and wide force majeure wording. A firm date is the anchor for every other remedy, because without it a delay is hard to prove. Read the force majeure clause carefully too, since an overly broad version can let a builder excuse almost any slippage by pointing to routine difficulties, and narrow it to genuine, extraordinary events if you can.
Equally important is symmetry. Many draft agreements charge you a high rate of interest if you are late paying, but promise you only a token rate if the builder is late delivering. Insist that the interest the builder pays for a delay matches the rate you would pay, as RERA envisages an even handed position. If the project is delayed, you also have statutory options, explained in our guide to RERA Section 18 and your rights on delayed possession.
What does the agreement say about defects after possession?
Your agreement should preserve, not dilute, the five year defect liability that RERA gives you. Section 14(3) of the Act makes the promoter responsible for rectifying structural defects and defects in workmanship, quality, or services brought to their notice within five years of possession, without further charge, within thirty days. This is a statutory right, and a clause that appears to shorten or waive it should be challenged, since the protection is not the builder's to remove.
When you read the agreement, check that any warranty or defect clause is at least as strong as this statutory floor, and note the process for reporting defects. Keep the agreement, the possession letter, and any defect complaints together, so you can enforce the five year window if problems appear. Our detailed guide to the five year defect liability period explains exactly what you can demand and how.
Which one sided clauses should raise a red flag?
Watch for clauses that give the builder wide freedom while tying you down, because these are where drafts most often tilt. Common red flags include an asymmetric delay interest, a right for the builder to change the layout or sanctioned plans without the required consent of allottees, a cancellation clause that forfeits large sums if you exit but protects the builder if it does, and open ended charges added near possession. The table below lists the clauses worth checking most carefully.
| Clause | What a fair version looks like |
|---|---|
| Carpet area and price | Exact RERA carpet area, price tied to it |
| Possession date | A specific date, not merely tentative |
| Delay interest | Builder pays the same rate you would pay |
| Defect liability | Five year rectification duty preserved |
How should you review your builder-buyer agreement?
Review it methodically, and never under time pressure at a crowded signing table. The checklist below helps a Bengaluru buyer read an agreement the way it deserves to be read.
- Insist on the full agreement for sale before paying more than 10 percent.
- Confirm the RERA carpet area matches the figure declared with the regulator.
- Check the price is itemised and the payment schedule is stage linked.
- Ensure the possession date is specific, not tentative.
- Confirm the delay interest the builder pays matches your own default rate.
- Check the five year defect liability is preserved, not diluted.
- Flag any clause that lets the builder change plans or add charges freely.
Take the draft home, read it twice, mark it up in the margins, and return with a written list of your questions before you sign anything at all. The buyer in Sarjapur did exactly that, negotiated a firm possession date and symmetric delay interest, and signed only once the agreement matched his rights rather than merely the builder's convenience, whether for a compact flat or a larger home in a project such as Godrej Woodland.
Frequently asked questions
Is a builder-buyer agreement mandatory under RERA? Yes. Under Section 13 of RERA, a promoter cannot accept more than 10 percent of the flat cost as an advance without first signing a written, registered agreement for sale. The agreement must follow the prescribed form, so you are entitled to a full, proper contract before paying beyond that threshold.
Can a builder change the possession date after I sign? The possession date in your agreement should be specific, and a builder cannot simply keep moving it. If the project is delayed beyond the agreed date, you have remedies under RERA, including interest for the delay or, in some cases, a refund. This is why insisting on a firm date, not a tentative one, matters so much.
What is the builder's defect liability in the agreement? Under Section 14(3) of RERA, the builder must rectify structural defects and defects in workmanship or services notified within five years of possession, at no extra cost, within thirty days. Your agreement should preserve this right, and a clause that appears to shorten or waive it can be challenged as it undercuts a statutory protection.
Should delay interest be the same for both sides? Ideally yes. Many draft agreements charge buyers a high interest for late payment but offer only a low rate if the builder delays possession. RERA envisages an even handed position, so insist that the interest the builder pays for a delay matches the rate you would pay, and treat a lopsided clause as a point to negotiate.
Last updated 2026-09-06. PropNewz Team.
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