East Bengaluru buyer answers
What should I check in the builder's sale agreement before signing?
Direct answer: Compare the draft with the proforma agreement uploaded on the project's Karnataka RERA page, then check carpet area, total price and what it includes, the payment schedule, the possession date, interest on delay (both ways), how changes to plans are handled, defect liability, cancellation terms and any extra charges. Have your own lawyer review it.
Disclosure: acre&key’s advice is free to buyers; we are an authorised sales partner for some projects and may be paid by the developer.
Verify with your lawyer: This page is general guidance on reading a builder's agreement for sale under RERA, not legal advice. Before you sign, have your own property lawyer review the draft against the RERA proforma and your specific unit's terms.
Why does the agreement matter?
Under section 13(1) of the RERA Act, the promoter can't take more than 10% of the cost as an advance without a written, registered agreement for sale. Section 13(2) says the agreement has to specify the development particulars, specifications, payment dates and manner, possession date, and interest rates payable by each side on default. Once you sign, it governs almost everything.
Clause by clause
| Clause | What to check | Watch for |
|---|---|---|
| Parties | Promoter's name matches the RERA registration | A different company |
| Property | Unit number, tower, floor, carpet area | Only super built-up area mentioned |
| Price | Total, with a breakdown | Charges "as applicable" with no amount |
| Payment schedule | Linked to stages or dates | Large payments early in construction |
| Possession date | Matches the RERA declared date | Long "grace" periods |
| Interest on delay | Same rate both ways | Higher rate for you than for the promoter |
| Changes to plans | Your consent needed for your unit | Broad "right to modify" |
| Common areas | Listed clearly | Vague or missing |
| Parking | Allotted, with number | "Subject to availability" |
| Defects | Five years from possession | Shorter period |
| Cancellation | Refund terms if either side cancels | Heavy forfeiture |
| Conveyance | Timeline for sale deed and handover to association | No timeline |
What the Act says on key points
Interest. Section 2(za) says the interest rate the promoter charges you on default must equal the rate it pays you on default.
Changes to plans. Section 14(2) says the promoter can't make additions or alterations to your unit's sanctioned plans, specifications, fixtures or amenities without your consent, apart from minor changes. Other changes to the building's plans or common areas need written consent of at least two-thirds of the allottees.
Defects. Section 14(3) says structural defects and certain other defects you report within five years of possession must be fixed free within 30 days.
Delay. Section 18(1) gives you the option to withdraw with refund and interest, or stay and get interest for each month of delay.
Conveyance. Section 17 requires the promoter to execute a registered conveyance deed in your favour and hand over common areas to the association.
If the agreement seems to take away these rights, ask your lawyer.
Where real estate consultancy services help
A consultant can: - get the draft early, not at the signing table; - compare it with the proforma on the RERA page; - check that negotiated concessions are written in; - flag unclear charges; - coordinate with your lawyer.
Which promises in the agreement does the Act lock in?
A few protections apply whatever the agreement's small print says, and it helps to know them before you read:
- Plans and specifications. Under section 14(2), once the sanctioned plans, specifications, fixtures, fittings, amenities and common areas have been disclosed to you, the promoter can't make additions or alterations to your unit without your previous consent. The only exceptions are minor changes you ask for, or minor changes needed for architectural or structural reasons that an authorised architect or engineer has recommended and that you've been told about. The Act's own explanation says "minor" excludes structural changes such as adding area, changing height, or cutting into walls, columns or beams. Changes to the building's plans or common areas need the written consent of at least two-thirds of the allottees.
- Defects for five years. Under section 14(3), if you report a structural defect, or a defect in workmanship, quality or services, within five years of handover, the promoter has to fix it free of charge within 30 days. If they don't, you're entitled to compensation.
- Delay. Under section 18(1), if the promoter doesn't complete or hand over by the date in the agreement, you can either withdraw and get your money back with interest, or stay in and be paid interest for every month of delay until possession. The interest rate is the one prescribed under the Rules.
- Title. Section 18(2) makes the promoter compensate you for loss caused by defective title to the land, and that claim isn't time-barred.
If a clause in your draft seems to undercut any of these, flag it for your lawyer by number.
What does the agreement ask of you?
The agreement binds you too. Section 19(6) makes you responsible for paying on the schedule in the agreement, plus your share of registration charges, municipal taxes, water and electricity charges, maintenance and other charges. Section 19(7) says you pay interest at the prescribed rate for late payment. Section 19(10) requires you to take physical possession within two months of the occupancy certificate. Read your payment schedule against your loan sanction and your own cash flow before you sign, not after the first demand letter arrives.
How do you compare the draft with the proforma on the portal?
Every registered project files a proforma agreement for sale with its registration (section 4(2)(g)). Download it from the project page on rera.karnataka.gov.in and put it side by side with the draft you've been given. Mark every place they differ. Some differences are harmless, like unit details or payment dates. Others aren't: a longer grace period for completion, a cap on delay interest, extra charges not on the cost sheet, or a clause letting the promoter change plans without your consent. Those are the ones to raise before signing, because after registration you have far less room to push back.
Before you sign
- Get the draft at least a few days before signing.
- Download the proforma agreement from the RERA project page.
- Compare the two clause by clause.
- Have your lawyer review it.
- Make sure every promise you were given is written in.
- Book the registration through Kaveri and keep the registered copy safe.
See the home buying process, checking a project on the Karnataka RERA website and documents to verify before a token.
Frequently asked questions
Can I negotiate the agreement?
Some clauses, yes, especially commercial terms. Builders often resist changes to standard terms, but it's worth asking for clarity.
Is the agreement registered?
Section 13(1) requires a registered agreement before the promoter takes more than 10%. Registration is through the Sub-Registrar's office.
What if the agreement differs from the RERA proforma?
Ask the promoter why, in writing, and have your lawyer advise before you sign.
Should carpet area be in the agreement?
Yes. The RERA Act requires carpet area to be disclosed. Check the figure matches the RERA page.
Who pays stamp duty on the agreement?
Usually the buyer. Check the current rate with the Department of Stamps and Registration or your lawyer.
How long does the builder have to fix defects after handover?
Under section 14(3), defects you report within five years of handover must be fixed without charge within 30 days, or you're entitled to compensation.
References
- Real Estate (Regulation and Development) Act, 2016, official text hosted by Karnataka RERA (sections 4, 13, 14, 18 and 19). https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 15 Oct 2026.
- Real Estate (Regulation and Development) Act, 2016, full text PDF (PRS Legislative Research). https://prsindia.org/files/bills_acts/acts_parliament/2016/the-real-estate-%28regulation-and-development%29-act,-2016.pdf, accessed 15 Oct 2026.
- Karnataka Real Estate Regulatory Authority, official portal (project status, agent status, complaints). https://rera.karnataka.gov.in, accessed 14 Oct 2026.
- Karnataka Real Estate (Regulation and Development) Rules, 2017, as notified 10 July 2017 (gazette copy hosted by NAREDCO). https://naredco.in/notification/pdfs/Karnataka%20Real%20Estate%20(Regulation%20and%20Development)%20Rules,%202017.pdf, accessed 14 Oct 2026.
- Kaveri Online Services (registration, Encumbrance Certificate, guidance value). https://kaveri.karnataka.gov.in/, accessed 14 Oct 2026.