Agreement for sale

The agreement for sale sets out the unit, carpet area, price, payment plan, possession date, specifications and the obligations of both parties. RERA rules in most states prescribe a model form and limit how far the developer can depart from it.

Section 13 of the RERA Act prohibits the promoter from accepting more than 10% of the cost of the apartment as an advance or application fee without first entering into a written agreement for sale and registering it. Stamp duty and registration fee are paid at this stage.

Example: a unit costs ₹80,00,000. The developer may collect up to ₹8,00,000 before the agreement. The next demand cannot be raised until the agreement is registered.