Also called: BBA, Builder buyer agreement, Agreement for sale (RERA), Flat buyer agreement
BBA: the agreement between a developer and a buyer of a flat in a project, setting out the unit, price, payment plan, specifications and possession date. RERA calls it the agreement for sale.
How it works and what to check
State RERA rules prescribe a model agreement for sale, and builders cannot dilute the buyer's rights under the Act. Courts have also refused to enforce one-sided clauses in older agreements, such as very low delay compensation.
Read the possession date and grace period, the delay interest, cancellation and refund terms, the carpet area, what is included in the price, and the defect liability clause.
Common questions
Is a builder-buyer agreement registered?
For a RERA project the agreement for sale must be registered before the builder takes more than 10% of the cost. Stamp duty on it differs by state.
Can I negotiate a builder-buyer agreement?
Some terms, yes. The rights RERA gives you cannot be signed away.