An agreement for sale records the price, payment schedule, timelines and obligations of buyer and seller (or builder). For new projects it is signed after booking; ownership passes later through the sale deed.
Example
Booking a flat in Thane
A buyer books a ₹1.1 crore 2 BHK in a MahaRERA-registered project in Thane and pays ₹11 lakh — the 10% cap under section 13 of the RERA Act. The builder then executes the agreement for sale in the format the Maharashtra rules prescribe, the buyer pays stamp duty, and the agreement is registered before the next instalment is due.
Figures are illustrative, not market rates.
Questions about Agreement for sale
Does an agreement for sale transfer ownership?
No. Section 54 of the Transfer of Property Act, 1882 says a contract for sale does not by itself create any interest in the property. Ownership passes later through the registered sale or conveyance deed. The agreement gives the buyer a contractual right to enforce the sale.
Is the agreement for sale format fixed under RERA?
For registered projects, section 13(2) of the RERA Act requires the agreement to be in the form prescribed by the state’s rules, which contain a model agreement. Builders may add clauses, but not ones that override the model agreement or the Act in a way that harms buyers.
Must an agreement for sale be registered?
For new projects, section 13(1) of the RERA Act requires a written, registered agreement before the promoter takes more than 10% of the cost. Stamp duty on agreements varies by state. Resale agreements are also commonly registered to protect the buyer’s rights.
Sources
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