Agreement for Sale & Allotment Letter Review

What must a buyer understand before paying?

Section 13(1) prohibits a promoter from 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 should not be treated as interchangeable with that registered agreement. Record what has already been paid and the document under which the next demand is made.

The review should identify the exact unit, carpet area, consideration components, payment milestones, possession date and incorporated plans. Compare the draft with the project disclosures and the buyer’s written offer. If a sales representative promised a particular amenity, parking arrangement or concession, ask where it appears in the binding documents rather than relying on memory.

• RERA Act, 2016, Section 13 (no deposit or advance without written agreement)
• RERA Act, 2016, Section 4 (application for registration)

Which clauses require a specific buyer decision?

Review cancellation, forfeiture, delayed-payment interest, unilateral variation, extension, possession, maintenance and dispute provisions. The advocate should explain the consequence of each material clause and distinguish mandatory statutory rights from negotiable commercial terms. A clause described as non-negotiable still needs explanation so the buyer can make an informed decision.

Section 13(2) addresses matters the agreement should specify, including development particulars, payments, possession and interest. Sections 14 and 18 concern other promoter obligations and remedies. Read the agreement as a whole rather than assume a favourable sentence overrides every inconsistent schedule. If the draft changes after comments, compare the final version and annexures before signing.

• RERA Act, 2016, Section 13 (no deposit or advance without written agreement)
• RERA Act, 2016, Section 14 (adherence to sanctioned plans; structural defect liability)
• RERA Act, 2016, Section 18 (return of amount and compensation)

What is outside a document-only review?

Agreement review does not automatically verify the entire title chain, measure the unit or audit the promoter’s bank accounts. Those are separate scopes. The buyer should receive a note identifying document issues, requested clarifications and additional diligence recommended. Cross-linking to the property-due-diligence and resale services avoids presenting a narrow contract review as a comprehensive purchase clearance.

Before execution, confirm the signatories, schedules, registration process and payment instructions. Retain the signed and registered copy with receipts and the final approved draft. If a material issue remains unresolved, obtain advice before making an unconditional acknowledgment or payment. The service does not recommend investment returns or promise that a favourable agreement will prevent every future dispute.