9 Clauses You Must Re-read Before You Sign an Agreement for Sale

The Agreement for Sale is the most consequential document a homebuyer signs. These nine clauses are the ones we tell our customers to read twice — and walk away if anything material is missing.

1. Possession date

Should be a specific date, not a vague "target" or "on or about". RERA mandates a date; ensure it matches the date filed on the state RERA portal.

2. Grace period and delay penalty

Most agreements allow a 6-month grace period and then trigger a per-month delay penalty (commonly Rs 5-10 per sqft per month). Verify the penalty rate is meaningful.

3. Carpet vs super-built-up area

Pricing in RERA-era agreements is supposed to be on carpet area. Cross-check the carpet stated in the agreement against the carpet on the RERA portal — should match exactly.

4. Force-majeure language

Read this carve-out carefully. It should be narrowly defined to genuinely uncontrollable events. Broad force-majeure clauses can silently push your possession date by years.

5. Specification annexure

All fittings, brands, finishes and floor heights should be in a signed annexure. Verbal commitments don't survive into legal disputes.

6. Maintenance corpus and IFMS

Interest-free maintenance security (IFMS) is typically Rs 50-100/sqft and is refundable. Ensure the agreement specifies refund mechanics.

7. Common-area chargeback

Maintenance can be charged at carpet or super-built-up. The difference can be 25-35% of your monthly bill for 30 years. Lock this in clearly.

8. Transfer and assignment

Most agreements disallow assignment before possession or impose a hefty transfer fee. If you're an investor, model this cost into your IRR.

9. Dispute resolution and jurisdiction

RERA jurisdiction now overrides most arbitration clauses for project-related disputes. Ensure the agreement explicitly references the relevant state RERA.