These are the 7 Things I Wish I Knew Before Signing My First Builder Agreement
Buying your first home can be exciting — until the fine print of the builder agreement hits you. Most homebuyers in India rush into signing builder agreements without fully understanding the legal consequences. This post shares seven hard-earned lessons every buyer should know before signing on the dotted line.
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1. Check if the Project Is RERA Registered
Before anything else, confirm that the project is registered with RERA in your state. A RERA number ensures the project meets certain legal and financial compliance.
Why it matters: Unregistered projects may be illegal or unauthorized.
See when to use RERA vs. consumer forums for real estate disputes.
2. Understand the Possession Clause
Don't assume your flat will be delivered on time. Look closely at the “possession date” — and whether the agreement mentions a grace period or compensation for delays.
Builder delays are common — here’s what Indian law says.
Many buyers are shocked by late-stage charges for parking, clubhouses, maintenance, and even floor rise. Your builder-buyer agreement must mention all charges clearly — not vaguely as “as applicable.”
Understand the hidden risks in The Hidden Legal Costs of Buying a Flat in India.
4. Know the Cancellation and Refund Terms
What happens if you want to back out after paying a booking amount? The cancellation clause tells you whether you’ll be refunded — and how much you’ll lose.
Here’s what happens if you back out of a flat booking.
5. Is There a Penalty Clause for Delays?
Most builder agreements have penalty clauses if *you* delay payment — but what if *they* delay construction? A fair agreement should also penalize the builder for default.
See how to draft a builder-buyer agreement that protects you.
6. Demand Approved Layout Plans
Changes in layout, floor size, or amenities are common. Make sure the agreement includes:
- Approved building layout
- Flat number and configuration
- Sanctioned floor plan
To avoid disputes, understand how layout changes can lead to legal trouble.
7. Always Get It Reviewed by a Lawyer
Never rely only on the builder’s agent or sales staff. You have the right to take the agreement, review it at home, and consult a property lawyer before signing.
How to talk to a lawyer before buying property
Explore More on Property Law in India
Your builder agreement is more than paperwork — it's your legal protection. Take the time to read, question, and verify before you commit.
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