Builder Buyer Agreement (India)
BUILDER BUYER AGREEMENT
Real Estate (Regulation and Development) Act 2016 | Transfer of Property Act 1882
RERA Project Registration No.: [RERA Number]
This Builder Buyer Agreement is entered into on [Agreement Date] at [State] between:
(1) PROMOTER: [Promoter Name] (CIN/PAN: [Promoter CIN]), having its registered office at [Promoter Address] (hereinafter the "Promoter"); AND
(2) ALLOTTEE: [Allottee Name] (Aadhaar: [Allottee Aadhaar], PAN: [Allottee PAN]), residing at [Allottee Address] (hereinafter the "Allottee").
1. APARTMENT AND PROJECT DETAILS
1.1 The Promoter agrees to sell and the Allottee agrees to purchase: [Apartment Number], a [Apartment Type] apartment in [Project Name], [Project Address] (RERA No.: [RERA Number]).
1.2 Carpet Area (RERA Section 2(k)): [Carpet Area]. All pricing is on carpet area basis. If actual carpet area at possession deviates by more than the permitted tolerance, the Allottee shall receive a proportionate refund (deficiency) or shall pay proportionately (excess up to 3%).
1.3 Parking: [Parking Details].
2. CONSIDERATION, GST AND PAYMENT SCHEDULE
2.1 Basic Sale Price: [Basic Sale Price]. Other charges: [Other Charges]. Total consideration (excluding GST): [Total Consideration].
2.2 GST at 5% (for under-construction residential property) is payable by the Allottee in addition to the above consideration, as per applicable GST laws.
2.3 Amount paid at booking: [Booking Amount Paid]. Balance payment schedule: [Payment Schedule].
2.4 TDS: If total consideration exceeds ₹50,00,000, the Allottee shall deduct TDS at 1% under Section 194-IA of the Income Tax Act 1961 at each payment stage, deposit via Form 26QB, and issue Form 16B to the Promoter.
3. POSSESSION DATE AND RERA DELAY REMEDY
3.1 The Promoter shall complete construction, obtain the Occupancy Certificate, and offer possession of the Apartment by [Possession Date] (the "Possession Date").
3.2 RERA Delay Compensation (Section 18): If the Promoter fails to give possession by the Possession Date, the Allottee may: (a) withdraw from the project — the Promoter shall refund the full amount paid with interest at SBI MCLR + 2% per annum from the date of each payment, within 45 days; or (b) continue — the Promoter shall pay monthly interest at SBI MCLR + 2% per annum on all amounts paid until actual possession.
3.3 Force majeure events as defined under RERA shall extend the Possession Date accordingly.
4. SPECIFICATIONS, DEFECT LIABILITY AND CONVEYANCE
4.1 The Apartment shall be constructed per the approved plan and specifications in the RERA registration. No material alteration shall be made without the Allottee's prior written consent (Section 14, RERA).
4.2 Defect Liability (Section 14(3), RERA): The Promoter shall be liable for 5 years from the date of possession to rectify structural defects and deficiencies in workmanship reported by the Allottee at no additional cost.
4.3 Conveyance Deed (Section 17, RERA): The Promoter shall execute and register the conveyance deed of the Apartment in the Allottee's name within 3 months of issuance of the Occupancy Certificate.
4.4 RWA / Society: The Promoter shall facilitate formation of a Resident Welfare Association or Co-operative Housing Society and hand over common areas within the prescribed time under applicable [State] law.
5. GOVERNING LAW AND DISPUTE RESOLUTION
5.1 This Agreement is governed by the Real Estate (Regulation and Development) Act 2016, Transfer of Property Act 1882, and applicable [State] law. The Allottee may file complaints with the [State] RERA Authority or RERA Adjudicating Officer. Disputes may also be referred to the Consumer Disputes Redressal Commission under the Consumer Protection Act 2019.
Promoter / Developer
________________
Signature
Allottee / Buyer
________________
Signature
Witness 1
________________
Signature
Witness 2
________________
Signature
What Is a Builder Buyer Agreement (India)?
A Builder Buyer Agreement in India sets out the mutual obligations the parties accept and the terms that govern their dealings.
Under Section 13 of the Real Estate (Regulation and Development) Act 2016 (RERA), a promoter cannot accept any amount exceeding 10% of the apartment's cost from an allottee before executing a registered Builder Buyer Agreement. This mandatory registration requirement (with the Sub-Registrar) protects buyers by confirming the terms are formally recorded and enforceable.
RERA fundamentally reformed Builder Buyer Agreements by mandating: (a) carpet area-based pricing and disclosure; (b) a definite possession date with delay compensation provisions; (c) milestone-linked payment schedules tied to construction progress; (d) 5-year structural defect liability; (e) restrictions on unilateral changes to specifications; (f) the builder's obligation to execute and register the conveyance deed (sale deed) within 3 months of the Occupancy Certificate; and (g) the establishment of the Resident Welfare Association and handover of common areas.
Before RERA, Builder Buyer Agreements were notoriously one-sided, with clauses that heavily favoured developers — unlimited delays, open-ended price revisions, vague specifications, and no compensation for defects. RERA prescribed a model agreement format (the Model Builder Buyer Agreement) that most states have adopted, significantly improving buyer protection.
The legal framework governing the Builder Buyer Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Builder Buyer Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Transfer of Property Act, 1882 sets the foundational requirements.
When Do You Need a Builder Buyer Agreement (India)?
You need a Builder Buyer Agreement when you are purchasing an under-construction flat or apartment from a real estate developer in India. This agreement is the legal foundation of your purchase — it records your rights as a homebuyer and the developer's obligations, and is the document you will rely on if disputes arise during the construction period or at possession.
You need this agreement before you pay more than 10% of the flat's cost to the developer. Under Section 13 of RERA, the developer cannot accept more than 10% (including the booking amount) without executing a registered Builder Buyer Agreement. If a developer insists on taking a larger deposit before signing the agreement, this is a violation of RERA and a red flag.
You need this agreement registered with the Sub-Registrar. Registration is not optional — it is required by RERA. An unregistered Builder Buyer Agreement does not provide the legal protections of a registered agreement, and the Sub-Registrar registration creates a public record of the transaction.
You need this agreement as the primary document for your home loan application. Banks and housing finance companies (HFCs) require a copy of the registered Builder Buyer Agreement (or Allotment Letter for the initial loan sanction) as part of the home loan documentation.
You need this agreement to access the full range of RERA remedies — delay compensation under Section 18, structural defect liability under Section 14(3), and the right to enforce the agreed specifications. These remedies are linked to the terms of the registered agreement, making it the foundation of all RERA-based buyer protection.
Parties in India should prepare a Builder Buyer Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Builder Buyer Agreement (India)
A thorough India Builder Buyer Agreement should contain the following key elements.
RERA Details: RERA project registration number, state RERA authority, and developer's RERA registration number.
Parties: Full legal names, Aadhaar numbers, PAN numbers, and addresses of promoter/developer and allottee/buyer(s).
Project Details: Project name, approved plan details, development authority approval, location.
Apartment Description: Floor, apartment number, wing, type (1BHK, 2BHK, etc.), carpet area (sq. ft. and sq. m.), exclusive balcony/terrace area, exclusive garage area (if any).
Consideration: Total price on carpet area basis, breakup of base price, parking, preferential location charges, infrastructure charges, GST (at 5% for under-construction properties).
Payment Schedule: Milestone-linked payment tranches — booking, floor slab completion stages, brick work, plaster, fit-outs, OC application, possession — with amounts and due dates.
Possession Date: The definite possession date and RERA delay compensation provisions (SBI MCLR + 2%).
Specifications: Detailed construction specifications, flooring, fittings, fixtures, amenities — all legally binding.
Common Areas and Amenities: List of all common amenities to be provided.
Defect Liability: 5-year structural defect warranty from date of possession.
Conveyance: Developer's obligation to execute conveyance deed within 3 months of OC.
Force Majeure: Events excusing delay, as defined under RERA.
Defaulter Provisions: Consequences of buyer and developer default under RERA.
TDS: Section 194-IA provisions for consideration exceeding ₹50 lakhs.
GST: GST at applicable rate on under-construction property.
Additional compliance elements for a Builder Buyer Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Builder Buyer Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/real-estate/purchase-sale/builder-buyer-agreement-india
"Builder Buyer Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/real-estate/purchase-sale/builder-buyer-agreement-india.
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author = {{Forms Legal}},
title = {Builder Buyer Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/real-estate/purchase-sale/builder-buyer-agreement-india}},
note = {Free legal document template. Based on Transfer of Property Act, 1882}
}Frequently Asked Questions
The Real Estate (Regulation and Development) Act 2016 (RERA) imposed a comprehensive set of obligations on builders/promoters in India, fundamentally shifting the balance of power in favour of homebuyers. These obligations are enforced by the state RERA Authority and backed by significant penalties (up to 10% of the project cost for violation, and imprisonment for repeated or fraudulent violations). Key obligations of a builder under RERA 2016:
(1) Project registration (Section 3): The promoter must register every project (with more than 8 units or exceeding 500 sq. m.) with the state RERA Authority before launching, marketing, or accepting any advance. The application must include title documents, approved plans, project specifications, and a timeline for completion. (2) Carpet area basis (Section 12): All advertising and sale must be on carpet area basis (not super built-up area). The carpet area must be disclosed in the Builder Buyer Agreement. (3) 70% escrow (Section 4(2)(l)(D)): 70% of all amounts received from buyers for a specific project must be deposited in a dedicated bank account (escrow) and used only for land and construction costs of that project, as certified by an engineer and chartered accountant. This prevents diversion of funds. (4) Possession date (Section 2(zf)): The builder must commit to a specific date of possession in the RERA registration and in the Builder Buyer Agreement. The date may be extended only under RERA-defined force majeure circumstances.
Under RERA 2016, a builder's ability to modify the Builder Buyer Agreement after it has been signed (and registered) is severely restricted. This was a key reform — before RERA, builders routinely included one-sided terms that allowed them to change specifications, add charges, or modify layouts at their discretion, without the buyer's consent. Key RERA provisions on modifications:
(1) No unilateral changes (Section 14(1)): The promoter cannot make any material alterations or additions to the approved plans, layout plans, or specifications as agreed to between the promoter and allottee, without the previous written consent of at least two-thirds of the allottees who have purchased units in the project. (2) Consent requirement for alterations to the buyer's apartment: For changes to the individual apartment (flat) specifications, the promoter must obtain the prior written consent of the specific allottee concerned. (3) Deviation in area: If the actual carpet area of the apartment at the time of possession is different from the carpet area stated in the agreement, the buyer is entitled to a proportionate refund (where the actual area is less) or may be charged for the excess area (where the actual area is more, but only up to 3% deviation is permissible under most state RERA regulations). A deviation exceeding the permitted tolerance triggers RERA remedies.
Before RERA, buyers of under-construction properties in India had very limited practical remedies for delayed possession — consumer forums and civil courts provided relief but the process was slow and uncertain. RERA 2016 fundamentally improved the remedial framework. RERA remedies for delayed possession (Section 18):
(1) Withdrawal with full refund: If the builder fails to deliver possession by the agreed date, the buyer may give written notice to the builder and withdraw from the project. The builder must refund the full amount paid (entire principal) with interest at SBI's MCLR plus 2% per annum from the date of each payment, within 45 days of the buyer's withdrawal notice. This is a significant remedy — the interest rate (currently approximately 10–12% per annum depending on MCLR) is well above typical savings rates and compensates buyers for the opportunity cost of their locked-in capital. (2) Continuing with interest compensation: If the buyer chooses to continue with the project despite the delay (which most buyers do, especially if they have already made substantial payments), the builder must pay the buyer monthly interest at SBI MCLR plus 2% per annum on the amount(s) paid, from the date of the agreed possession until the actual date of possession. This interest must be paid monthly and is not merely adjustable at the end. (3) RERA complaint: The buyer can file a complaint with the RERA authority or the RERA adjudicating officer.
A Builder Buyer Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Transfer of Property Act, 1882 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Builder Buyer Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Transfer of Property Act, 1882, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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