Practice area

Agreement review and due diligence before buying

Review of allotment letters and agreements for sale, and project due diligence, before a buyer commits money.

Most RERA disputes begin with a document that was not read carefully before signing. A review before purchase is the cheapest protection a buyer has.

What this work involves

• Checking that the project is registered with K-RERA and that the details match the registration
• Reviewing the agreement for sale against the format the Act requires, including carpet area, possession date, payment schedule and defect liability
• Checking the rule that a promoter cannot take more than ten percent of the cost as an advance without a registered agreement for sale
• Title and encumbrance checks, sanctioned plans and approvals
• Identifying one-sided clauses on delay, cancellation, interest and changes in plan
• Advice on builder-buyer agreements and loan documents
• Review of resale and transfer documentation

Frequently asked questions

Can a builder take a large advance before signing an agreement?

No. The Act does not allow a promoter to accept more than ten percent of the cost as an advance without first entering into a registered agreement for sale.

What should a buyer check first?

The project's registration, title and approvals, the sanctioned plan, and the date of possession in the agreement.

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