Daily · Free tool
Builder Agreement Red-Flag Checker
A typical Builder-Buyer Agreement is 60-100 pages and heavily favours the builder. RERA Act 2016 mandates fair clauses, but enforcement is patchy. Watch for these clauses.
Possession date with vague language
HighInsist on a specific date with penalty for delays beyond 6 months.
No RERA registration / number
Very HighWalk away. RERA is mandatory. Demand the project number.
Floor area on super built-up basis
HighPer RERA, must be on carpet area. Convert with our calculator.
Force majeure too broad
HighLimit to genuine acts of God, war. Reject vague clauses.
Unilateral modification by builder
Very HighBuyer should also have rights. Negotiate symmetric clauses.
Cancellation fee > 10%
HighNegotiate to 5% or refund-on-RERA-cancellation.
Maintenance for 5+ years by builder
MediumSociety should take over after 1-2 years.
Pre-EMI / construction-linked plan
MediumMeans you pay EMI before possession. Risky if delivery delays.
Common areas not specified
HighDemand explicit list — what are the actual amenities you're paying for.
Resale restrictions before possession
MediumNegotiate full resale rights with reasonable transfer fee (1-2%).
No grace period on payment delays
MediumStandard is 7-15 days. Push back on 0-day strict deadlines.
GST charged on stamp duty
HighGST is on construction value only, NOT on stamp duty (separate state levy).
How it works
We flag clauses against the Real Estate (Regulation and Development) Act, 2016 (RERA), the Consumer Protection Act 2019 and Supreme Court rulings in Pioneer Urban (2019) and DLF Home Developers (2020). Common red flags: one-sided cancellation (builder forfeits 20-30% but buyer can't escape delay), asymmetric interest rates on delayed payments vs delayed possession, super-area inflation up to 30-40% over carpet area, “preferential location charges” without disclosure, and arbitration clauses that lock you out of consumer fora.
Worked example
A ₹1.2 crore Pune flat's BBA shows: 32% super-area loading (carpet 850 sqft sold as 1,260 sqft super), forfeiture of 20% earnest money on buyer cancellation but only 8% SBI MCLR + 1% to buyer on builder's delay, possession date as “tentative” with a 6-month grace, and an arbitration seat in Mumbai. Each of these is challengeable — RERA mandates carpet-area pricing, symmetric interest, fixed possession dates with penalty clauses, and the option to approach consumer court irrespective of arbitration clauses.
When to use this
- Before signing a BBA or Allotment Letter for an under-construction Mumbai/Pune/NCR flat
- Reviewing a draft agreement from DLF, Lodha, Godrej, Prestige, Brigade or a Tier-2 builder
- Preparing a RERA complaint for a delayed-possession project
Pair this with our stamp duty calculator and state-wise stamp duty guide before registration.
FAQ
Should I sign anyway if builder won't change?
For severe red flags (no RERA, no possession date) — walk away. For moderate flags, document concerns in writing, attach addendum to the agreement. Get a lawyer to draft.
RERA helps after issues?
Yes — file complaint at RERA Authority of your state. Penalty/refund possible. Free / nominal fee. Resolution typically 60-180 days.
Buyer's rights post-2017?
RERA Act 2016 (effective 2017) gives buyers: refund + interest on builder default, possession penalty (rate of MCLR + 2%), regulator complaints. Pre-RERA agreements harder to challenge.