Signing an Agreement for Sale in Mumbai? What RERA Says It Must Contain
A Mumbai buyer's guide to the RERA agreement for sale: the terms Section 13(2) requires, why clauses cannot override the Act, the equal interest rule, the ten per cent advance cap, and a seven point check before signing.
A Mumbai buyer receives a draft agreement for sale by email on a Friday evening, with a request to "confirm by Monday so we can book the registration slot". It runs to dozens of pages. There is a payment schedule tied to slabs, a possession clause with a grace period, a section on interest, and a long list of things the buyer agrees to. It is tempting to skim to the price and sign. Under RERA, though, an agreement for sale is not a blank canvas for the builder, and knowing what it must contain is the fastest way to read it.
The short answer. Section 13(2) of the RERA Act says the agreement for sale must be in the form prescribed by the appropriate government and must specify the particulars of development, including construction, specifications and internal and external development works, the dates and manner of payments, the possession date, and the rates of interest payable by each side in case of default. The Ministry of Housing and Urban Affairs' FAQs say the agreement is binding on both parties and can carry other provisions agreed between them, but its terms cannot be contrary to the Act and the Rules. The trade-off: the prescribed form protects the core terms, but the extra clauses a builder adds are the part a buyer has to read most carefully.
What must a RERA agreement for sale contain?
A fixed core of terms. Section 13(2) of the Real Estate (Regulation and Development) Act, 2016 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 the 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.
Each item is something you can find and check in the draft. If any one of them is vague, for example a possession clause that gives no date, or an interest clause that names a rate for you but not for the builder, that is the clause to question first.
Is the agreement binding if it says something the Act does not allow?
The agreement binds both sides, but only within the Act. The Ministry of Housing and Urban Affairs' FAQs on the RERA Act, dated July 2025, say that under Section 13(2) the appropriate government is required to specify through Rules the agreement for sale to be entered into between the promoter and the allottee. They add that the agreement is binding on the parties, that internal flexibility could be provided for other provisions decided between the parties, and that the terms of the agreement "cannot be contrary to the provisions of Act and Rules thereto."
The Act backs this up in general terms. Section 89 says the provisions of the Act shall have effect notwithstanding anything inconsistent with them in any other law for the time being in force.
Signing also locks in what you were shown. Section 14(2) says that once the sanctioned plans, layout plans, specifications and the nature of fixtures, fittings and amenities are disclosed to you, the promoter shall not make additions or alterations to them for your apartment without your previous consent, apart from the minor changes the proviso allows. That makes the specification schedule in the agreement worth reading line by line.
For Mumbai, the "appropriate government" is the Maharashtra government, so the form that applies is the one prescribed under the state's rules. Ask the builder which prescribed form the draft follows, and compare your draft against that form clause by clause.
Can you see the builder's draft before you book?
Yes, in principle, because the builder had to file it. Section 4(2)(g) of the Act says the promoter shall enclose with the registration application a proforma of the allotment letter, the agreement for sale and the conveyance deed proposed to be signed with the allottees. That proforma is the version the regulator received.
The same application carries the promoter's sworn statements on the land. Section 4(2)(l) says the application must include a declaration, supported by an affidavit, stating that the promoter has legal title to the land, that the land is free from all encumbrances or, as the case may be, details of the encumbrances on it, and the time period within which the promoter undertakes to complete the project or phase. Read the agreement's recitals on title and the completion schedule against those statements. If the affidavit lists an encumbrance and the draft says nothing about it, raise it before you sign.
If the draft you are handed differs from the proforma filed at registration, ask why. Our guide to verifying a MahaRERA project registration shows how to find a project's registration page.
What does the interest clause have to look like?
Symmetrical. Section 2(za) of the Act defines interest as the rates payable by the promoter or the allottee, and its explanation says the rate chargeable from the allottee by the promoter in case of default shall be equal to the rate the promoter is liable to pay the allottee in case of its default.
The same explanation sets the periods. Interest payable by the promoter runs from the date it received the amount until the amount and interest are refunded, and interest payable by the allottee runs from the date of default in payment until it is paid. A draft that charges you a higher rate for a late instalment than it offers you for a late handover does not match that definition.
How do payment and possession clauses link to your rights?
They become the yardstick for the builder's performance and yours. Section 18(1)(a) says that if the promoter fails to complete or is unable to give possession in accordance with the terms of the agreement for sale, or duly completed by the date specified in it, the promoter is liable on demand, if the allottee wishes to withdraw, to return the amount received with interest at the prescribed rate, including compensation. Our explainer on refund or interest for a delayed Mumbai flat covers that choice in detail.
Your side is set out in Section 19(6). It 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 the agreement, and pay their share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges.
The money before the agreement is capped too. Section 13(1) says a promoter shall not accept more than ten per cent of the cost of the apartment as an advance or application fee without first entering into a written agreement for sale and registering it.
How do the key clauses compare with what the Act requires?
Use this table to map the draft in front of you to the Act.
| Clause in your draft | What the Act requires | Section |
|---|---|---|
| Description and specifications | Particulars of development, specifications, internal and external development works | Section 13(2) |
| Payment schedule | Dates and manner of payments by the allottee | Section 13(2) |
| Possession | The date on which possession is to be handed over | Section 13(2) |
| Interest on default | Rates both ways, with the allottee's rate equal to the promoter's | Section 13(2); Section 2(za) |
| Advance before signing | No more than ten per cent without a registered agreement | Section 13(1) |
What should you check before signing?
Work through the draft with this list, and ask for written answers on anything unclear.
- Get the draft at least a few days before the registration appointment.
- Compare it with the form prescribed under Maharashtra's RERA rules.
- Ask for the proforma agreement filed with the registration application.
- Confirm the possession date is a specific date, not only a range.
- Check that the interest rate for your default equals the builder's.
- Match the payment schedule with the construction stages described.
- Confirm the total paid so far is within ten per cent before registration.
If you are comparing projects, check how each one presents its registration. For a project with a published MahaRERA number, such as the one on our page for Prestige Garden Trails in Mira Road, ask for the draft agreement early and run it through the same checks before you pay beyond the booking amount.
Frequently asked questions
What must a RERA agreement for sale specify?
Section 13(2) of the RERA Act says it must be in the prescribed form and specify the particulars of development, including construction, specifications and internal and external development works, the dates and manner of payments, the date of possession, and the interest rates payable by the promoter and the allottee in case of default.
Can a builder add clauses to the RERA agreement for sale?
The Ministry of Housing and Urban Affairs' FAQs say the agreement for sale is binding on both parties and can provide internal flexibility for other provisions decided between them, but its terms cannot be contrary to the provisions of the RERA Act and the Rules. Section 89 also gives the Act overriding effect over inconsistent laws.
Can the builder charge me a higher interest rate than it pays me?
No. Section 2(za) of the RERA Act says the interest rate chargeable from the allottee by the promoter in case of default shall be equal to the rate the promoter must pay the allottee in case of its own default. Interest on your side runs from the date of default until payment.
How much can a Mumbai builder collect before the agreement is registered?
Section 13(1) of the RERA Act says a promoter shall not accept more than ten per cent of the cost of the apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale and registering it under the law in force.
Last updated 2026-10-21. PropNewz Team.
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