Clauses in sale agreements and deeds that buyers rarely read

By the time the agreement reaches you, you have spent months searching and negotiating the price, and the document looks like standard paperwork. It was drafted by the builder's lawyer. These are the clauses worth slowing down for before you sign.

Clauses that favour the builder

• A broad right to change the layout or specifications.
• A "force majeure" clause worded so widely that almost any delay is excused.
• A right to alter common areas.
• A bar on buyers raising objections during construction.

Some flexibility is reasonable. The law also sets limits. Under RERA, the builder needs your consent to change the plan or specifications of your own flat, and the written consent of two-thirds of the buyers to change the project layout or common areas. Telangana's RERA rules include a model agreement for sale, and TG RERA has fined a builder for not following it, so compare your draft against that form. There is no prescribed format for the sale deed, which means you have to read that one on its own terms.

RERA does not automatically cancel every one-sided term. Once you have signed, a clause is hard to challenge unless it clearly goes against the Act or another law.

Exit penalties and possession dates

Agreements often carry:

• High cancellation charges if you withdraw for personal reasons.
• A lock-in period before you can resell or transfer.
• Very little compensation if the builder is late.

Possession dates deserve a careful read. A "36-month possession" can stretch to 42 or even 48 months once grace periods and exceptions are added. Under RERA, if the builder misses the date in the agreement, you can withdraw and get a refund with interest, or stay and be paid interest for each month of delay. The date in the agreement, grace period included, is the date that counts. Before you sign, work out two numbers: what you lose if you exit, and what the builder owes you if the flat is late.

Clauses that affect resale, renting and loans

• Transfer fees payable to the builder or the association when you sell.
• Restrictions on renting, or on short-term leasing.
• Conditions tied to the Occupancy Certificate.

None of these matter on the day you move in. They matter when you want to sell, rent the flat out, or move your loan to another lender.

Get a lawyer to read it

Many buyers skip a legal review to save time or money. We think that is a mistake, even with a reputed builder. A good reputation lowers the risk of the project failing. It does not make the contract balanced.

A property lawyer will flag the clauses you can still negotiate, tell you what a delay or an exit would cost you, check the draft against RERA and the project's approvals, and look at anything that limits resale or financing. Some clauses are negotiable before you sign, more so when the builder is keen to close sales. The fee is small next to what one bad clause can cost.

Do this before you pay any large amount or sign anything binding. relai does not give legal advice, so the review should come from an independent property lawyer.

If you want to know what to ask the builder before the agreement stage, talk to a relai advisor.