A sale agreement is where most property disputes are quietly seeded — not in the negotiation, but in clauses neither side reads closely enough. Our legal desk reviews these documents for clients every week, and the same handful of issues keep showing up. Here are the five worth checking before you sign anything.
1. Vague or open-ended possession dates
"Possession within a reasonable time" or "as per project completion" is not a date — it's an excuse waiting to happen. A sale agreement should name a specific month and year, along with what happens if that date slips: a grace period, and a penalty clause that kicks in after it.
2. No penalty clause for delayed possession
Builders routinely include penalty clauses for late payment by the buyer, but agreements often stay silent on delays from the builder's side. If yours does, ask for a reciprocal clause — typically a monthly compensation amount per square foot for each month of delay beyond the grace period.
3. Ambiguous carpet area versus super built-up area
Under RERA, the carpet area must be stated explicitly, but some agreements still blur this by quoting only the super built-up figure. Make sure the agreement states carpet area in square feet, matching what's on the RERA project page, not just a percentage or loading factor.
4. Unclear cancellation and refund terms
If you need to exit the agreement, what do you get back, and when? Some agreements allow builders to deduct a disproportionate percentage as "forfeiture" regardless of the reason for cancellation. Look for a clear refund timeline and a capped, reasonable deduction.
5. Silence on who bears statutory charges
GST, stamp duty, registration charges, and any future cess or levy — the agreement should state clearly who pays what, and whether the quoted price is inclusive or exclusive of these. Disputes over "who owes what" are far easier to avoid than to resolve after the fact.
None of these clauses are unusual to ask for — builders expect informed buyers to raise them. If an agreement resists a small, standard change, that itself is useful information.
