Sale Agreement (Agreement for Sale)

The agreement for sale is the contract you sign before the home is transferred to you. It sets the price, the payment schedule, the carpet area, the specifications, the handover date and what happens if either side is late. Section 54 of the Transfer of Property Act says plainly that a contract for sale does not, by itself, create any ownership interest. Ownership passes later, with the registered sale deed.

For a new flat, this is the document you will live with for years before possession. RERA makes it central. Section 13 says a builder cannot take more than 10% of the cost as an advance before a written agreement for sale is registered. Karnataka’s RERA rules also give a model form, so the key promises cannot be left vague. Your bank will need the registered agreement before it disburses the loan.

A small illustrative example: on a home costing ₹75 lakh, the most you should pay before the agreement is registered is ₹7.5 lakh.

• Carpet area, with balconies shown separately.
• The payment schedule, and whether it is tied to construction stages.
• The handover date, any grace period, and the interest paid if it is missed.
• Specifications: flooring, fittings, windows, lifts.
• What you pay at possession: corpus, maintenance, connection charges.
• Cancellation terms, on both sides.

Ask for a draft a few days before signing and have a lawyer read it. Questions are easier before the ink is dry.