The Agreement for Sale is the most consequential document you will sign in a property purchase. Once registered, it is legally binding on both you and the builder or seller. The commitments made in this document — the carpet area, possession date, payment schedule, penalty provisions — are what you will enforce if things go wrong.
Builders draft agreements. Their lawyers have reviewed these documents hundreds of times. Many clauses that seem standard are specifically worded to limit your rights and maximise the builder’s flexibility. Buyers who sign without scrutiny often discover these limitations when it is too late to renegotiate.
This checklist covers the 15 most critical things to verify before signing any property agreement in Pune — for both new projects and resale purchases.
Why Your Agreement Matters More Than Your Brochure
The builder’s brochure is marketing material with no legal standing. The floor plan drawn on the back of a glossy leaflet is not a commitment. The sales executive’s verbal assurance about possession by December 2027 is not enforceable.
The only commitments that matter in law are the ones in the registered Agreement for Sale.
Under MahaRERA, builders are required to use an agreement format that conforms to standard provisions protecting buyers. However, the actual implementation — the specific numbers, dates, and definitions inserted into those standard clauses — varies significantly. The checklist that follows is your guide to what those numbers and definitions should say.
Checklist Item 1: RERA Registration Number Is Present in the Agreement
What to check: The RERA registration number must appear in the agreement itself — typically in the recitals (opening section) and in a specific clause referencing the project’s MahaRERA registration.
What good looks like: A clearly stated registration number in the format P52100XXXXX (for Pune district), with the registration valid through a date that extends beyond the committed possession date.
Red flag: “RERA registration applied for” or any equivalent language. Do not sign an agreement for a project that is not yet registered. You have no legal protection under RERA until the project is registered.
Checklist Item 2: Carpet Area Is Defined — Not Built-Up or Super Built-Up
What to check: The agreement must state the area you are purchasing in carpet area terms. Maharashtra’s model agreement, mandated by MahaRERA, requires carpet area to be the basis of pricing.
What good looks like: “The Purchaser agrees to purchase Unit No. [X] having a carpet area of [X] square feet” — with carpet area explicitly defined as the area enclosed within the walls, excluding external walls but including internal walls and columns.
Red flag: Any agreement that prices your unit in “built-up area” or “super built-up area” without also declaring the carpet area. Built-up area includes wall thickness; super built-up area includes a proportional share of common areas. The difference between carpet area and super built-up area typically ranges from 20–40% — you could be buying 30% less usable space than you think.
Checklist Item 3: Payment Schedule Matches Your Actual Plan
What to check: The agreement’s payment schedule must align with your loan disbursement structure and your cash availability. Review every milestone payment — what percentage is due at booking, on commencement of foundation, on plinth, on each floor slab, at superstructure completion, and at possession.
What good looks like: A construction-linked payment plan (CLP) where payments are tied to verified construction milestones, or a time-linked plan with clearly defined dates. Each instalment amount and its triggering milestone must be specified.
Red flag: A payment schedule that demands 40–50% of the property value within the first 6 months with limited construction milestones as justification. This indicates the builder is using buyer funds to finance construction rather than having adequate capital — a risk pattern that has historically preceded project stoppages in Pune.
Checklist Item 4: Possession Date with a Defined Grace Period
What to check: The agreement must state a specific possession date — not a range, not “approximately 36 months from commencement certificate,” but a specific calendar date. It should also state the grace period allowed to the builder before delay penalties kick in.
What good looks like: “The Developer shall hand over possession of the said unit by [specific date], with a grace period of 6 months.” After the grace period, the builder’s penalty obligation begins.
Red flag: Vague language like “36 months from the date of all approvals” without specifying when the approval clock starts. This formulation effectively gives the builder unlimited time because “all approvals” is never precisely defined. Under MahaRERA, builders must declare a specific possession date — insist on one.
Checklist Item 5: Penalty Clause for Delay — Builder Pays You
What to check: The agreement must include a clause requiring the builder to pay you compensation if possession is delayed beyond the committed date plus grace period. Under MahaRERA, the minimum prescribed interest is SBI MCLR + 2% per annum on amounts paid.
What good looks like: A clause explicitly stating: “In the event the Developer fails to hand over possession by [date + grace period], the Developer shall pay the Purchaser interest at [SBI MCLR + 2%] per annum on all amounts paid by the Purchaser, calculated from the date of expiry of the grace period until the actual date of possession or refund.”
Red flag: A builder-drafted agreement that has no penalty clause, or one that limits compensation to a nominal fixed amount (e.g., ₹5 per sq.ft per month — a fraction of what the law entitles you to). Some agreements include penalty clauses that mirror the law but bury an offsetting clause allowing the builder to recover equivalent amounts if the buyer is delayed in any payment. Read the entire document, not just the highlighted sections.
Checklist Item 6: Force Majeure — What Actually Qualifies
What to check: Force majeure clauses allow builders to suspend their obligations — including possession timelines and penalty payments — during events beyond their control. The definition of what qualifies as force majeure determines whether this clause is reasonable or a blanket escape route.
What good looks like: Force majeure limited to genuinely extraordinary events: natural disasters, declared war, government-ordered construction moratoriums, and pandemics with documented impact on the project. The clause should also require the builder to notify you promptly when invoking force majeure and resume obligations as soon as the event ends.
Red flag: Overly broad force majeure definitions that include “labour disputes,” “material price increases,” or “delays in municipal approvals.” Labour disputes and approval delays are routine risks that a professional developer is expected to manage — they should not extinguish your right to delay compensation.
Checklist Item 7: Price Escalation Clause — Should Be Absent or Capped
What to check: Some builder agreements include price escalation clauses allowing the total price to increase if construction costs rise.
What good looks like: No price escalation clause at all. A fixed-price agreement is standard practice and the norm for RERA-registered projects. Once you sign an agreement at a stated price, that price should be fixed.
Red flag: Any clause allowing the builder to revise the sale price, per sq.ft rate, or add additional charges based on material or labour cost increases after the agreement is signed. This transfers construction cost risk to the buyer — a risk the builder should carry as part of their business.
Checklist Item 8: Parking — Covered or Open, Specific Allotment Number
What to check: Parking in Pune projects is frequently contentious. The agreement must specify: (a) whether parking is covered or open, (b) the specific parking spot number allotted to your unit, and (c) whether parking is included in the sale price or priced separately.
What good looks like: “The Developer hereby allots covered car parking slot No. [X] on [floor] of the parking deck to the Purchaser, included in the agreed sale consideration of ₹[X].” An alternative is a letter of allotment for the parking space attached as an exhibit to the agreement.
Red flag: “One car parking space, location to be decided by the Developer at possession.” This is an opening for the builder to allot you the least accessible or least desirable parking spot — or, in some documented cases, to sell the same parking spot to two buyers. Your parking spot should be specifically identified in the agreement.
Checklist Item 9: Club and Amenity Completion Timeline
What to check: Most new projects in Pune are sold on the promise of a clubhouse, swimming pool, gym, co-working space, and landscaped gardens. These amenities are often not completed at the time your flat is handed over. The agreement should specify when amenities will be completed.
What good looks like: A specific date by which the clubhouse and core amenities will be operational, with a penalty provision if they are delayed beyond that date — typically mirroring the per-unit delay penalty structure.
Red flag: “Amenities to be developed in phases as per the Developer’s plan.” This is effectively no commitment at all. Buyers who have received possession in Phase 1 of large Pune townships have waited 5–7 years for amenities promised at the time of booking.
Checklist Item 10: OC/CC Responsibility — Explicitly on the Builder
What to check: The Occupancy Certificate (OC) is the final approval from the municipal authority certifying that the building was constructed as approved and is safe for habitation. The Completion Certificate (CC) is a related document issued by the local authority. The agreement must confirm that obtaining these is the builder’s responsibility, not a shared obligation or something that depends on buyer action.
What good looks like: “The Developer shall apply for and obtain the Occupancy Certificate/Completion Certificate from the competent authority before offering possession of the unit to the Purchaser.” Possession should be explicitly conditioned on OC being received.
Red flag: Any language suggesting that possession will be offered or accepted before OC is received, or that buyers will take possession on an “as-is” basis pending regulatory approvals. Taking possession without OC exposes you to significant risks (see our RERA guide for details).
Checklist Item 11: Maintenance Pre-Payment Limit
What to check: Builders routinely ask buyers to pay 12–24 months of advance maintenance charges at possession. Under MahaRERA regulations, a builder can collect a maximum of 3 months’ advance maintenance deposit before handing over management to a registered housing society.
What good looks like: Maintenance advance limited to 3 months. Any amount beyond this is not legally permissible under the current MahaRERA framework.
Red flag: Demands for 12 or 24 months’ advance maintenance pre-collection, or a corpus fund demand that is not supported by a registered housing society framework. If the housing society has not yet been formed at possession, the builder cannot collect maintenance amounts beyond the statutory limit.
Checklist Item 12: Sub-Registrar Index II Extract
What to check: The Index II is the summary record maintained by the sub-registrar’s office of every document registered for a specific property address. For a resale property, request a certified copy of the Index II for the flat you are purchasing.
What good looks like: The Index II should show the clear chain of ownership: original builder-to-first buyer agreement, and then any subsequent transfers. Each transaction should appear clearly, with amounts and dates matching the seller’s story about how they acquired the property.
Red flag: Gaps in the chain of ownership (transactions that the seller cannot explain or document), registered mortgages or liens that the seller claims have been discharged (verify discharge documentation separately), or discrepancies in the property description between different documents.
Checklist Item 13: No Prior Encumbrances — Confirmed
What to check: For resale properties, confirm that there are no outstanding mortgages, loans, or claims registered against the property. This requires an encumbrance certificate from the sub-registrar’s office.
What good looks like: An encumbrance certificate showing no registered claims for the period of the seller’s ownership — at minimum the last 13 years. If the seller has an outstanding home loan, the lender’s NOC (No Objection Certificate) confirming the loan has been or will be discharged from the sale proceeds must be in hand before registration.
Red flag: A seller who says their previous home loan is “closed” but cannot produce the original discharge letter and NOC from the bank. A lender’s charge on a property remains registered until formally released — verbal assurances are worthless.
Checklist Item 14: GST Applicability — Clearly Stated
What to check: GST applies to under-construction properties but not to ready-possession (OC-received) properties. The agreement must clearly state whether GST is included in the sale price or is payable over and above it.
What good looks like: Either “GST of [5%/1%] is included in the above sale consideration” or “GST of [5%/1%] shall be payable by the Purchaser in addition to the above sale consideration, at the rate applicable at the time of each instalment payment.” Affordable housing units (carpet area under 60 sq.metres in metro cities, priced under ₹45 lakh) attract 1% GST.
Red flag: An agreement that is silent on GST, or one where the sales executive verbally tells you GST is included but the agreement text says otherwise. Any ambiguity here should be resolved in writing before signing.
Checklist Item 15: Cancellation and Refund Terms
What to check: What happens if you need to cancel the purchase — whether due to loan rejection, personal circumstances, or builder default? The agreement must spell out the refund terms, the forfeiture amount (if any), and the timeline for refund.
What good looks like: For buyer-initiated cancellation, a reasonable forfeiture of booking amount (typically 2%) with refund of the balance within 60–90 days. For builder default (failure to hand over by committed date), a full refund with interest as prescribed by MahaRERA, within 30 days of your refund request.
Red flag: Forfeiture of 10–15% of total sale value for buyer cancellation under any circumstances. This is far beyond the norm and represents a punitive clause. Also watch for refund timelines of 12–24 months — this is the builder effectively using your money interest-free for an extended period after cancellation.
Your Pre-Signing Checklist: Quick Reference
Before you sign the Agreement for Sale, confirm all 15 items:
- 1. RERA registration number present and active in the agreement text
- 2. Carpet area stated in sq.ft; not just built-up or super built-up area
- 3. Payment schedule matches your loan structure; milestones are specific
- 4. Specific possession date stated; grace period is 6 months or less
- 5. Builder delay penalty clause: interest at SBI MCLR + 2% minimum
- 6. Force majeure definition is narrow; excludes routine construction risks
- 7. No price escalation clause; agreement price is final and fixed
- 8. Specific parking spot number allotted; type (covered/open) confirmed
- 9. Amenity completion date specified; linked to a penalty for delay
- 10. OC/CC: builder’s obligation explicitly stated; possession conditional on OC
- 11. Maintenance advance: maximum 3 months as per MahaRERA norms
- 12. Index II extract reviewed (resale) — chain of ownership is clean
- 13. Encumbrance certificate clear; outstanding loan NOC in hand (resale)
- 14. GST treatment clearly stated — included or payable separately
- 15. Cancellation terms: forfeiture capped at 2%; refund timeline under 90 days
Important: This checklist is a buyer’s framework, not a substitute for legal advice. For any property purchase above ₹50 lakh, engaging a qualified property lawyer to review the agreement is money well spent — typically ₹8,000–15,000 for a review, against a multi-crore transaction.
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