Legal Guide

Builder-Buyer Agreement — Red Flags and Must-Check Clauses

PropyMart · 2026

The Builder-Buyer Agreement Explained

A builder-buyer agreement (BBA) is the contract between you and the developer before possession. Unlike the sale deed, it's signed when you book a flat under construction.

Red Flag: One-Sided Force Majeure

Watch for broad force majeure clauses that excuse builder delays for almost anything — 'market conditions', 'regulatory delays', or 'force majeure not limited to the above'. Good agreements define force majeure narrowly.

Red Flag: Escalation Clauses

Some builders include cost escalation clauses letting them increase the sale price mid-construction. RERA prohibits this for registered projects — if you see it, escalate to the RERA authority.

Key Clause: Possession Timeline

Possession date is mandatory

RERA mandates a specific possession date in the BBA. Builders can extend by 6 months for legitimate delays, but must notify buyers. Beyond that, they owe you interest compensation.

Key Clause: Carpet Area Definition

After RERA, all BBAs must quote area in carpet area (usable floor area excluding walls). If your agreement quotes super built-up area, insist on a carpet area addendum before signing.

Have a Lawyer Review Your BBA

PropyMart connects buyers with RERA-specialist legal advisors who review BBAs and flag red clauses. Don't sign without an independent legal review — it's the best ₹2,000 you'll spend.

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