Real Estate Law · For homebuyers
Clauses that most often cause disputes. General legal information only.
Clauses to read twice
- Area: RERA uses carpet area. Check how the price is calculated and what the built-up and super areas mean in the agreement.
- Possession date and delay: the date, any grace period, and the interest payable by the promoter for delay. Check that it is not far weaker than the interest you pay for late instalments.
- Payment plan: instalments linked to construction stages, and the consequence of late payment.
- Cancellation and refund: deductions on cancellation and the timeline for refund.
- Changes to plans: alterations to the sanctioned plan need the consent required by the Act.
- Defects: the promoter’s obligation to rectify defects reported within five years of possession.
- Extra charges: maintenance deposits, parking, club charges and other add-ons.
One-sided terms
Terms that are unfair or contrary to the Act can be challenged before the Authority. Getting the agreement reviewed before you sign is far easier than disputing it later.
Register the agreement
Have the agreement for sale registered and keep a copy of the registered document along with the payment receipts.
Related: Real estate and RERA · All real estate guides · Send an enquiry
Important disclaimer: This article is general legal information, not legal advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current statutes, rules and judgments before relying on it.
