Builder Buyer Agreement (BBA): Clause-by-Clause Guide for Buyers

For years, Gurgaon buyers signed a "builder buyer agreement" (BBA) drafted entirely by the developer, often with one-sided terms on delays and cancellation. The Real Estate (Regulation and Development) Act, 2016 (RERA) changed this. For RERA-registered projects, the sale contract is now an agreement for sale in the format prescribed under the state's RERA rules, and several buyer protections apply whatever the contract says. Many people still call it the BBA.

This guide explains what each part of the agreement does, which protections come from the law, and what you still need to read closely. It is general information. Have a lawyer review the agreement for your unit before you sign.

Before you sign: three timing rules

• 10% cap before registration. Under Section 13 of RERA, a promoter cannot take more than 10% of the cost as an advance or application fee without first executing a registered agreement for sale. See the 10% booking rule.
• Read the registered format. Compare the draft with the model agreement format under the Haryana RERA rules and with the version uploaded on the project's HRERA page. Ask about any extra clauses.
• Do not rely on brochures. If a promise matters to you, such as a specification or an amenity, it should be in the agreement or its schedules.

Clause by clause

1. Parties, project and approvals

Check the names of all promoters and landowners, the DTCP licence number, the HRERA registration number and the approved plans referred to. A mismatch with the HRERA page is a red flag.

2. The unit and its area

The agreement should state the unit number, tower, floor and the carpet area, which is the basis for price under RERA. Super area figures may still appear for reference. Check the clause on how the price is adjusted if the final carpet area differs.

3. Price and what it includes

Look for the total price, its components and what is excluded. In the Haryana format, the price is escalation-free except for listed variations such as changes in government charges, and any such demand must come with the relevant government order. Check how EDC, IDC, parking, club, PLC, IFMS and taxes are treated.

4. Payment plan

Construction-linked plans should tie each instalment to a verifiable stage. Note the interest you will pay on late payments. Under RERA, the rate of interest payable by the buyer for default is the same as the rate the promoter must pay the buyer for its default.

5. Possession date

The agreement should state a specific date for handing over possession, consistent with the completion date declared on HRERA. Read the force majeure clause: it should cover genuine events beyond the promoter's control, not ordinary business problems. Possession should be offered after the occupation certificate is obtained.

6. Delay and refund

Under Section 18 of RERA, if the promoter fails to give possession as agreed, the buyer can withdraw and claim a refund with interest, or stay in the project and receive interest for every month of delay until possession. Our guide on possession delay, refund and interest in Gurgaon explains the process.

7. Cancellation by the buyer

If you cancel without fault on the promoter's side, the agreement will allow a deduction. Check the amount and the refund timeline. Haryana RERA orders have commonly limited this deduction to 10% of the sale consideration as earnest money, but confirm the current position for your case.

8. Changes to plans

Under Section 14 of RERA, the promoter needs the buyer's consent for changes to the unit's plans and specifications, and the consent of at least two-thirds of allottees for changes to the building's plans or common areas, other than minor permitted changes. See layout changes and two-thirds consent.

9. Transfer before possession

Check whether you may assign the unit before possession, the developer's consent process and any transfer or administrative fee. This matters if you might need to sell early.

10. Maintenance, IFMS and common areas

Look for the maintenance agreement, when charges start (usually from the offer of possession), the IFMS amount and when common areas and funds pass to the residents' association.

11. Defect liability

Under Section 14(3), if a structural defect or a defect in workmanship, quality or services is reported within five years of possession, the promoter must rectify it without charge within 30 days. The agreement cannot reduce this. See five-year defect liability.

12. Conveyance and registration

The agreement should state when the conveyance deed will be executed and who bears stamp duty and registration costs.

13. Disputes

Many agreements include an arbitration clause. Buyers can still approach Haryana RERA with complaints under the Act, and consumer forums have generally not allowed arbitration clauses to block consumer complaints. Take legal advice on the right forum.

Red flags

• Clauses that let the promoter change the possession date at will or treat delay compensation as a fixed small amount per square foot.
• Price escalation clauses beyond government charges.
• Large deductions on cancellation or no refund timeline.
• Blanket consent to future changes in plans.
• Differences between the draft and the agreement format uploaded on HRERA.

How NStay Homes can help

NStay Homes can help you compare the agreement you are offered with the project's HRERA records and approvals, and prepare a list of clauses to raise with the developer and your lawyer before signing. Speak to NStay Homes advisor Naresh Shekhawat on 911 911 9605.

Frequently asked questions

Is a BBA the same as an agreement for sale?

For RERA-registered projects, the contract between buyer and developer is the agreement for sale in the format prescribed under the state's RERA rules. Many people still call it the BBA, but its key terms must follow the RERA framework.

Can I negotiate the clauses in the agreement?

The core format is prescribed, but developers sometimes add clauses or schedules. You can ask for changes to project-specific terms, and you should question anything that conflicts with the Act or the format on HRERA.

What compensation do I get if possession is delayed?

Under Section 18 of RERA, you can either withdraw and claim a refund with interest, or stay in the project and receive interest for every month of delay until possession. The interest rate is set under the state's RERA rules.

How much can the builder deduct if I cancel?

The agreement sets the deduction, but Haryana RERA orders have commonly limited it to 10% of the sale consideration as earnest money. Check the current position and your agreement with a lawyer.

Should the agreement be registered?

Yes. The promoter cannot take more than 10% of the cost before executing a registered agreement for sale. Keep the registered copy with your payment receipts.