The Builder-Buyer Agreement, also known as the property purchase agreement, is a legal contract signed between the builder or developer and the homebuyer. It defines the terms and conditions of the property sale, including possession timelines, payment schedules, construction obligations, and buyer’s rights.

This agreement becomes legally binding once both parties sign it and is the foundation of your real estate transaction.

What is a Builder-Buyer Agreement?

Why is the Builder-Buyer Agreement Crucial in 2025?

In today's real estate market, where delays and disputes are not uncommon, the Builder-Buyer Agreement serves as:

• A legal shield for buyers

• A reference point in case of disputes

• Proof of commitment by both parties

• A requirement under RERA compliance

For any property registered under RERA (Real Estate Regulation and Development Act), a BBA must be executed before accepting more than 10% of the property cost from the buyer.

Key Clauses to Check Before Signing a Builder-Buyer Agreement

1. Possession Date

The agreement must specify the expected date of possession. Make sure the timeline is realistic and includes penalties for delay.

2. Carpet Area vs Super Built-up Area

Ensure clarity on the carpet area being offered. Many developers mention super built-up area, which includes common spaces. Under RERA norms, only the carpet area is chargeable.

3. Payment Schedule & Linked Milestones

The payment plan should be construction-linked, with clearly defined stages. Avoid vague schedules or lump sum demands.

4. Penalty Clause for Delays

If the builder delays possession, the agreement must state the compensation the buyer is entitled to — usually interest on the paid amount or rent.

5. Cancellation & Refund Terms

Check the cancellation clause: What happens if the buyer cancels? What deductions apply? Under RERA, the builder must refund the amount within 45 days after deducting minimal charges.

6. Force Majeure Clause

This clause protects builders from delays caused by events like natural disasters or government restrictions. Read this carefully — it should not be too broad.

7. Specification & Layout Guarantees

Ensure the promised amenities, materials, fixtures, and layout are clearly mentioned — and deviations should attract penalties.

Thanks to the Real Estate (Regulation and Development) Act, homebuyers now enjoy stronger protection. Under RERA 2025:

• The Builder-Buyer Agreement must be registered

• Buyers can seek compensation for delayed possession

• No changes to the layout or specifications can be made without the buyer’s written consent

• Interest paid by the builder in case of delay must match the interest charged to the buyer for late payments

Homebuyer Rights Under RERA (2025 Update)

When Should You Sign the Builder-Buyer Agreement?

As per Section 13 of the RERA Act, a builder cannot accept more than 10% of the property cost without executing the Builder-Buyer Agreement. If a builder asks for a higher amount before signing the agreement, it is a violation of the law.

Keep these documents ready when signing the agreement:

• Aadhar card / PAN card

• Allotment letter

• Booking form

• Builder’s RERA registration certificate

• Project brochure / layout plan

• Identity proof

Documents Required with a Builder-Buyer Agreement

Tips Before Signing Your Builder-Buyer Agreement

• Read every clause carefully — don’t rush

• Take legal advice from a property expert

• Ensure all verbal commitments are mentioned in writing

• Validate if the project is RERA registered

• Ask for a draft copy in advance

The Builder-Buyer Agreement in India is more than a formality — it is your shield in case of delay, fraud, or disputes. In 2025, with tighter RERA norms and growing awareness, don’t settle for anything less than a transparent, well-documented, and fair contract.

Whether you're buying a flat in South Delhi or investing in a luxury floor, TFRG ensures that our clients receive complete legal guidance and safe transactions with full transparency.

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Looking to buy your dream home or need help decoding your Builder-Buyer Agreement?

Contact The Fortune Realty Group (TFRG) today for expert property consultation in South Delhi and across NCR.