Builder-Buyer Agreement — What to Check Line by Line

The builder-buyer agreement is the contract that governs your purchase of an under-construction or builder-developed floor, and it is almost always drafted to protect the builder. Reading it carefully — ideally with a lawyer — before signing is one of the highest-value hours you can spend. In Haryana, projects that require registration should be registered with the state real-estate regulator, HRERA, and you can check a project’s registration and disclosures on the regulator’s portal.

Focus first on the payment plan and possession. Note whether payments are linked to construction stages or to time, the exact committed date of possession, and — crucially — what compensation the builder owes you if possession is delayed. Fair agreements provide a delay penalty payable to you, not only a penalty you pay for late instalments. Check that these two are reasonably balanced rather than one-sided.

Scrutinise how area is defined. Regulations emphasise carpet area — the usable floor area within walls — as the basis for sale, so confirm the agreement states the carpet area clearly and that the price is tied to it, not to a vaguely defined super area that can inflate the cost. Ask for the carpet area in writing and how any variation on final measurement will be adjusted.

Read the cancellation and refund clauses closely. Understand how much the builder can forfeit if you exit, the timeline and terms for any refund, and whether the builder has broad rights to cancel or change the project. Lopsided forfeiture terms are common, and this is often where buyers lose the most money, so negotiate where you can.

Go through the specifications and charges in detail — the promised fittings and finishes, the treatment of common areas and parking, and every extra charge such as external and internal development charges, preferential location charges, club or maintenance deposits, and taxes. Hidden or open-ended charges can add up significantly over the headline price, so insist that all charges are listed and, where possible, capped.

Finally, check the representations on title and approvals, the assignment or transfer rules if you might sell before possession, and the dispute-resolution clause, including where disputes are heard. Confirm the agreement reflects the approvals actually in place, and be wary of clauses that let the builder change plans, layouts or timelines unilaterally.

Regulatory requirements, model-agreement norms and disclosure rules evolve over time. Treat this as a checklist, verify the project’s current status on the HRERA portal, and have a property lawyer review the full agreement before you sign or pay.