Can a builder leave the possession date vague in my agreement?

By law, your Agreement for Sale must spell out the construction and development details, the payment schedule, the possession date, and the interest rate both you and the builder owe each other on default — a builder cannot leave these vague or hide them in a separate, unregistered document. Must cover: development/construction particulars, internal and external development works, payment dates and manner, possession date Must state the interest rate payable by the promoter to the allottee, and by the allottee to the promoter, on default — and by law these must be the same rate Most states require builders to substantially follow a state-prescribed model Agreement for Sale format The agreement must be registered under the Registration Act once you've paid more than 10% of the cost (s.13(1))

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What Must My Agreement for Sale Contain?

Short answer: By law, your Agreement for Sale must spell out the construction and development details, the payment schedule, the possession date, and the interest rate both you and the builder owe each other on default — a builder cannot leave these vague or hide them in a separate, unregistered document.

Law: RERA Act s.13(2) · Authority: MoHUA / State RERA authorities · Status: in force (effective 1 May 2016) · Checked 25 Sept 2026

What you need to know

Must cover: development/construction particulars, internal and external development works, payment dates and manner, possession date
Must state the interest rate payable by the promoter to the allottee, and by the allottee to the promoter, on default — and by law these must be the same rate
Most states require builders to substantially follow a state-prescribed model Agreement for Sale format
The agreement must be registered under the Registration Act once you've paid more than 10% of the cost (s.13(1))

Who this applies to: buyers, developers, lawyers

Official / primary source: indiacode.nic.in (government source)

The law behind it

RERA Section 13 — 10% Cap on Advance Payment Before Agreement for Sale

A builder cannot collect more than 10% of a flat's cost as booking amount or application fee before signing and registering a formal Agreement for Sale with the buyer. This stops builders taking large sums on a mere token booking with no binding contract behind it.

Section 13, Act No. 16 of 2016 · in force · source

Maharashtra Real Estate (Regulation and Development) Rules, 2017

These are Maharashtra's own rules under the central RERA Act — covering project and agent registration fees, the interest rate for delayed possession, and the disclosures builders must make on the MahaRERA website. They are the detailed operating manual behind MahaRERA's portal.

Maharashtra RERA Rules, 2017 · in force · source

Work out your own numbers

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