Also known as BBA, flat buyer agreement
Since the Real Estate (Regulation and Development) Act, 2016, the builder-buyer agreement for a registered project is the agreement for sale, which must follow the state’s model form under the RERA rules and be registered. Section 13 bars the promoter from taking more than 10% of the cost as an advance or application fee without first executing a registered agreement for sale.
Older agreements were often one-sided: low interest for builder delays, high interest for buyer delays, and wide rights to change plans. RERA’s model agreements limit such clauses and give buyers interest for delayed possession.
Buyers should check the carpet area as defined in RERA, the payment schedule, the possession date matching the RERA registration, and the defect liability clause before signing.
Example
A buyer books a ₹90 lakh flat in Thane and pays a ₹2 lakh booking amount. Before collecting further money beyond ₹9 lakh (10% of the cost), the developer must execute and register the agreement for sale. The draft follows the MahaRERA model form, stating the carpet area of 720 sq ft and the possession date on the RERA registration.
Figures are illustrative, not market rates.
Questions about Builder-buyer agreement
Is a builder-buyer agreement the same as an agreement for sale?
For RERA-registered projects, yes: the builder-buyer agreement is the agreement for sale in the state’s prescribed form, and it must be registered. “BBA” is the common name, especially in north India.
How much can a builder take before the agreement?
Under Section 13 of the RERA Act, no more than 10% of the cost of the apartment, plot or building as an advance or application fee before entering into a registered agreement for sale.
Sources
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