Legal Centre · Contracts
Reading the Builder-Buyer Agreement Before You Sign It
The builder-buyer agreement is drafted by the developer's counsel for the developer. Every clause you do not negotiate is a clause you have accepted.
- Clauses we always renegotiate
- 9
- Common cancellation forfeiture
- 10%
- Model agreement baseline
- RERA
- Review turnaround
- 48h
What the data says
- Possession must be a calendar date, not a date computed from an undefined commencement event.
- Delay interest should be symmetric between developer and buyer — the model RERA agreement contemplates this.
- Carpet, built-up and super-area definitions must reconcile to the RERA filing.
How EstateVeda executes this
- Clause-by-clause markup against the state model agreement.
- Negotiation of possession, penalty, cancellation and alteration clauses.
- Payment-plan review for subvention and interest-transfer exposure.
- Final execution supervision and stamping.
Risks we underwrite against
- Unilateral alteration clauses permitting layout or amenity change without consent.
- Forfeiture clauses that keep 10%+ on buyer cancellation but nothing on developer delay.
- Escalation clauses passing statutory cost increases to the buyer without cap.
EstateVeda verdict
Never sign the standard draft unamended. In practice developers concede on 4–6 of the nine clauses we mark up.
Frequently asked questions
Can a builder-buyer agreement be negotiated?
Yes. Developers routinely concede on possession definition, penalty symmetry, alteration rights and cancellation terms when the buyer is represented.
What is the most important clause?
The possession clause — specifically whether the date is fixed and what triggers extension.
Is the RERA model agreement mandatory?
States prescribe a model agreement; developer drafts must not contain terms that defeat RERA protections, and clauses that do are challengeable.