Quick answer Before you sign a builder-buyer agreement in Punjab or Haryana, check that it states the RERA carpet area, the full price with no escalation, a construction-linked payment plan, a firm possession date, delay interest at the RERA rate, a fair cancellation clause, 5-year defect liability, the specifications, title and approvals, parking and common areas — and that it will be registered. Go through it with our free agreement checker.
The builder-buyer agreement is the document you will rely on if anything goes wrong. Yet most buyers sign it in a hurry, often after paying a large booking amount. Here are the clauses to read first, what fair wording looks like, and what to ask for if it is missing.
The 15 clauses to check
| # | Clause | What it should say | Red flag |
|---|---|---|---|
| 1 | Carpet area | RERA carpet area, with balcony/terrace separately | Only “super area” |
| 2 | Price | Total price with full break-up | “Cost escalation” clause |
| 3 | Area variation | Price adjusts both ways; exit if change is large | Charges for more area, no refund for less |
| 4 | Payment plan | Linked to construction stages | Large upfront payments |
| 5 | Possession date | A fixed calendar date | “Tentative”, or counted from approvals |
| 6 | Delay interest | RERA rate, same as your late-payment rate | ₹5–10 per sq ft a month |
| 7 | Force majeure | Genuine events only | “Market conditions”, labour shortage |
| 8 | Cancellation by you | Forfeit only the booking amount | Forfeit of 15–20% or more |
| 9 | Refund on builder default | Full refund with interest | Refund without interest, or “on resale” |
| 10 | Defect liability | 5 years, free repairs (Section 14(3)) | Shorter period or exclusions |
| 11 | Specifications | Listed in a schedule; no change without consent | “Builder may change at discretion” |
| 12 | Title and approvals | RERA number, approvals, any mortgage disclosed | No mention of a project loan |
| 13 | Parking and common areas | Parking number; common areas to the association | Common areas “sold” to you |
| 14 | Maintenance and transfer | Charges, deposit and transfer fee stated | Open-ended charges |
| 15 | Disputes and registration | RERA rights intact; agreement registered | Arbitration “only”; unregistered agreement |
The clauses that cost buyers most
Delay compensation
Many agreements offer ₹5–10 per sq ft a month for delay. On a 1,250 sq ft flat that is ₹6,250–12,500 a month. Under RERA, the rate is SBI’s highest MCLR + 2% — about 10.85% a year — on everything you have paid. On ₹65 lakh paid, that is about ₹58,800 a month. See how to claim delay interest.
Force majeure
A wide force majeure clause lets the builder excuse almost any delay. It should cover only events outside the builder’s control — war, flood, earthquake, epidemic and similar — not approvals, funding or labour.
Cancellation and forfeiture
If you need to exit, the deduction should be limited to the booking amount, with the rest refunded within a stated time. Watch for clauses that also deduct brokerage, taxes and “administrative charges”.
Do not pay more than 10% before registration. Section 13 of the RERA Act bars a builder from taking more than 10% of the cost as an advance or booking amount without first registering an agreement for sale.
Buying resale instead?
A resale purchase uses an agreement to sell between you and the seller. Check that all owners sign, the title chain is listed, the earnest money and deadline are clear, the seller clears dues and NOCs, and who pays stamp duty. Our agreement checker has a separate resale checklist, and you can start from our free agreement to sell template.
Related reading
Read hidden charges in a flat price, how to check a builder before booking and our under-construction buying guide. RERACertified’s Home Buyer Rights course explains the model agreement clause by clause.
General information, not legal advice. Have a lawyer read your agreement before you sign.
