Section 13: the agreement before advances above ten per cent

Can a promoter collect a large advance on an allotment letter?

Section 13(1) prohibits accepting more than ten per cent of the apartment, plot or building cost as advance or application payment without first entering into a written agreement for sale and registering it. An allotment letter is not automatically equivalent to that registered agreement. Check payments already made and the proposed next demand.

The statutory limit is not a recommendation to pay ten per cent without diligence. Ask for the draft, plans, unit details and material terms before commitment. Preserve receipts and correspondence identifying the basis of each payment.

What should the buyer look for in the agreement?

Section 13(2) addresses matters including development particulars, specifications, payment dates, possession and interest. Review unit identity, carpet area, milestones, cancellation, variation and handover terms together with every incorporated schedule. The final registered version should match the reviewed draft; an unsigned benefit sheet or sales assurance may not supply a missing contractual obligation.

Compare the agreement with registration disclosures and current approvals. A contract review is not automatically a title search or technical inspection. Request additional diligence where needed and understand unresolved conditions before signing.

Official sources

• RERA Act, Section 13(1)–(2)
• Maharashtra registration rules and prescribed agreement material: official listing

See agreement review and pre-purchase diligence.

Editorial source check: 2026-10-24. Owner-approved for publication. No independent professional legal review or named professional authorship is claimed. “Last reviewed” records an editorial update, not legal sign-off. Check applicable amendments, orders and case-specific law before reliance.

General information, not legal advice. Authorship and review policy.