Where brochure promises become enforceable, or quietly disappear. What the Act requires, how state forms differ, and what an agent checks before a client signs.
Under Section 13 of the RERA Act, 2016, a promoter cannot take more than 10% of a unit's cost as advance or application fee until a written agreement for sale is signed and registered. The agreement must follow the state's prescribed form and state the specifications, payment schedule, possession date and the interest each side pays on default.
RERACertified™ Professional (RCP) covers Sections 11 to 19 of the Act, your state's rules and forms, and case studies on bookings and cancellations. RERACertified sells this course. RCP is a private certification and does not replace state RERA agent registration.
See RERACertified™ Pro — ₹4,999 →| Question | Short answer |
|---|---|
| Advance limit before agreement | 10% of the cost of the unit (Section 13(1)) |
| Must it be registered? | Yes, before more than 10% is taken |
| Who sets the format? | State rules (Section 13(2)): e.g. Haryana Annexure A, Punjab Form Q, Maharashtra Annexure A to Rule 10 |
| Does it transfer ownership? | No. The registered sale or conveyance deed does (TPA s.54; RERA s.17) |
| Defect liability | 5 years from possession; fix within 30 days (Section 14(3)) |
| Interest on default | Same rate both ways (Section 2(za)) |
| Agent's role | Share documents, flag issues, refer to a lawyer. Never draft or give legal opinions |
[Confirmed] Section 13(1) says a promoter shall not accept a sum of more than ten per cent of the cost of the apartment, plot or building as an advance payment or an application fee from any person without first entering into a written agreement for sale with that person and registering it under the law for the time being in force.
Section 13(2) says that agreement shall be in the form prescribed by the rules and must specify:
"Written" rules out a verbal booking; "registered" means signing alone is not enough. The limit binds the promoter, but an agent who helps collect more is helping a breach.
Each state's rules carry their own form under Section 13(2). Most follow the central model, but details differ. Four we checked:
| State | Where the form sits | Point to note |
|---|---|---|
| Haryana | Annexure A, see rule 8, Haryana RERA Rules 2017 | Form's interest clauses use SBI's highest MCLR plus 2%. HRERA Gurugram's 2018 regulations cap forfeiture at 10% of consideration. [State-specific] |
| Punjab | Form 'Q', rule 8(1), Punjab Rules 2017 (renamed from Annexure A by amendment) | Use the amended form on rera.punjab.gov.in. [State-specific] |
| Maharashtra | Annexure A to Rule 10, Maharashtra Rules 2017 | MahaRERA Order 30/2022: deviations from the model must be highlighted; a model allotment letter is mandatory once more than 10% is collected. [State-specific] |
| Tamil Nadu | Annexure 'A', rule 9, TN Rules 2017 (agreement for sale and construction agreement) | Notified by G.O.(Ms) No. 112 of 22 June 2017. [State-specific] |
Uttar Pradesh is reported to have separate Agreement for Sale/Lease Rules, 2018 [Reported]; verify on up-rera.in. For any other state, find the form in the rules on that state's RERA portal (see official RERA websites).
Keep this open while reading a builder buyer agreement.
| Clause | What the law says | What to check |
|---|---|---|
| Carpet area | Section 2(k): net usable floor area, excluding external walls, service shafts, exclusive balcony or verandah and exclusive open terrace; includes internal partition walls. [Confirmed] | Price on carpet area; balcony and terrace shown separately. See carpet area. |
| Price and inclusions | Section 13(2): particulars of development and specifications must be in the agreement. [Confirmed] | Total price with a breakup: parking, club, PLC, deposits, taxes. Unlisted "extras" become disputes. |
| Payment plan | Section 13(2) dates and manner; Section 19(6) allottee pays as per agreement. [Confirmed] | Instalments tied to construction stages. Subvention plans need care (below). |
| Possession date and "grace" | Section 13(2) requires a possession date; Section 18(1) runs from "the date specified" in the agreement. [Confirmed] | One clear date. The Act gives no grace period; a grace clause is a term to question. |
| Delay interest | Section 18(1): interest for every month of delay, or refund with interest. Section 2(za): same rate both ways. [Confirmed] | Promoter's rate equals buyer's rate. A ₹5 per sq ft delay penalty against 18% on buyer default is a red flag. |
| Defect liability | Section 14(3): defects reported within 5 years of possession fixed free within 30 days, or compensation. [Confirmed] | Not under 5 years; buyer never pays for structural repair. |
| Plan changes | Section 14(2): consent of the allottee for their unit; two-thirds of allottees for other changes. Structural changes are never "minor". [Confirmed] | No blanket "the buyer consents to all future changes" clause. |
| Cancellation and forfeiture | Section 11(5): cancel only as per the agreement; buyer may approach the Authority. [Confirmed] Cap is [State-specific] | Forfeiture stated as a figure and within the state cap (HRERA Gurugram: 10% of consideration; MahaRERA allotment letter: 0–2% before agreement). |
| Transfer or assignment | The Act does not set a resale fee. Haryana's form binds subsequent allottees to the same terms. [State-specific] | Transfer fee and NOC process in writing, not "as per company policy". |
| Force majeure | Section 6 Explanation: war, flood, drought, fire, cyclone, earthquake or other natural calamity affecting development. Extensions under Section 6 total at most one year. [Confirmed] | No wider than the Act. "Labour shortage" or "market slowdown" is a red flag. |
| Conveyance | Section 17(1): registered conveyance deed; absent a local law, within 3 months of the occupancy certificate. [Confirmed] | A conveyance timeline and who pays stamp duty on it. See OC vs CC. |
| Disputes | Complaints to the Authority (Section 31); compensation to the Adjudicating Officer; civil courts barred (Section 79). [Confirmed] | No clause waiving RERA remedies. |
Under a subvention plan the bank pays the builder from the buyer's loan and the builder promises to pay EMIs until possession. If the builder stops, the bank chases the buyer. [Reported] In July 2025 the CBI registered 22 cases, on Supreme Court directions, over an alleged builder-bank nexus in such NCR schemes. Get the tripartite agreement and who pays EMIs if possession slips in writing.
[Confirmed] Section 17(1A) of the Registration Act, 1908 (inserted in 2001) also requires a contract to transfer immovable property for consideration to be registered, or it has no effect for part performance under Section 53A of the Transfer of Property Act. Stamp duty varies by state: see stamp duty and registration charges by state. For the buyer's TDS, see TDS on property purchase.
Aman is buying a 2BHK in a RERA-registered project. The agreed cost of the unit is ₹80,00,000. His agent, Neha, is registered with the state authority.
| Stage | Amount | OK? |
|---|---|---|
| Booking/application amount | ₹5,00,000 | Yes, under the limit |
| Maximum before registered agreement (10%) | ₹8,00,000 | The ceiling |
| Builder asks for "15% to lock the price" before the agreement | ₹12,00,000 | No: ₹4,00,000 over the limit |
| After the agreement is signed and registered | As per payment plan | Yes |
Neha must not collect any booking money in her own name or in cash, call a "15% booking" normal, or sign for Aman. She makes sure the cheque is drawn to the promoter's account, gets the draft agreement and plan to Aman before he pays, and points out that anything above ₹8 lakh waits for registration. If the agreement's "cost" and the brochure price differ, she asks the promoter and leaves it to Aman's lawyer.
Carpet area, PLC, conveyance, force majeure, subvention, OC, CC: the India Real Estate Dictionary PDF explains the terms you will meet in a builder buyer agreement, with the section numbers behind them. Or browse the free online dictionary.
Get the Dictionary PDF — ₹499 →The checklist spots questions; it does not answer them. Agents do not draft agreements or give legal opinions. When a box is ticked, tell the buyer and recommend a lawyer's review before signing.
| Untrained agent says | Trained agent knows |
|---|---|
| "Pay 20% now, the agreement comes later." | Section 13(1) caps it at 10% until a written, registered agreement exists. |
| "There's a 6-month grace, so no claim till then." | Section 18 runs from the date in the agreement; the Act has no built-in grace. |
| "Builder's delay penalty is fixed in the contract." | Section 2(za): the builder's rate must equal the buyer's rate. |
| "Once you cancel, the booking amount is gone." | Forfeiture is set by the agreement and capped in some states; Section 11(5) lets the buyer go to the Authority. |
| "The agreement makes you the owner." | Ownership passes by the registered conveyance deed (TPA s.54; RERA s.17). |
| "I'll explain the clauses, no need for a lawyer." | Flag the issues, then refer to a lawyer. Legal opinions are not an agent's job. |
Deals that collapse after booking usually collapse over a clause nobody read. If a dispute does reach the Authority, see the RERA complaint process; refund and delay interest go to the Authority, compensation to the Adjudicating Officer (Newtech, 2021).
RERACertified™ Pro takes you through the promoter's obligations, the allottee's rights and your state's forms, so you can spot a problem clause before your client signs.
Enroll in RERACertified™ Pro — ₹4,999 →RERACertified sells this course. RERACertified™ Pro is a private certification and does not replace state RERA agent registration.