By S&S Co. Advocates & Solicitors · Published 16 April 2026 · Informational content, not legal advice. See our disclaimer
Why Standard-Form Doesn't Mean Non-Negotiable Protection
A builder-buyer agreement is typically presented to a homebuyer on a take-it-or-leave-it basis, drafted entirely by the developer's counsel with little room for the buyer to negotiate individual terms. Courts and RERA authorities have recognised this bargaining imbalance and have shown a willingness to scrutinise (and in some cases decline to enforce) specific clauses found to be one-sided, even though the buyer technically signed the document.
Open-Ended Timeline, Capped Buyer Remedy
One recurring pattern is a clause giving the developer broad, loosely defined discretion to extend the possession timeline for reasons within the developer's own control, paired with a separate clause capping the compensation payable to the buyer for delay at a low fixed rate regardless of how long the delay actually runs. Where this asymmetry goes to the heart of the timeline-and-compensation bargain, RERA authorities have shown willingness to disregard the capped-compensation clause when computing what is actually owed.
Interest Rate Asymmetry
RERA's own definition of 'interest' under Section 2(za) requires that the rate a developer pays for delay match the rate a buyer would pay for a payment default: an agreement quoting a lower rate for the developer's delay cannot override this statutory parity requirement, and the shortfall can be reclaimed regardless of the agreement's literal wording.
Unilateral Amendment and Forfeiture Clauses
Other clauses worth scrutinising closely include broad unilateral rights for the developer to amend project specifications, and cancellation or forfeiture clauses that exceed the earnest money cap set by the applicable state's model agreement for sale. A buyer is not expected to negotiate every clause individually, but should identify these categories before signing and, where possible, flag them: some developers will amend a specific clause on request even where the overall document is otherwise standard-form.
Frequently Asked Questions
Can I refuse to sign a builder-buyer agreement clause I think is unfair?
You can raise it before signing, though developers often decline to negotiate individual clauses in a standard-form agreement; if you sign and the clause later proves one-sided in the specific senses RERA authorities have recognised, it may still be open to challenge in a RERA complaint.
Does signing the agreement waive my right to later challenge a one-sided clause?
Not necessarily: RERA authorities have shown willingness to disregard specific asymmetric terms when computing statutory compensation, even where the buyer signed the agreement containing them.
What should I do if I've already signed an agreement with these clauses?
Keep the signed agreement and all payment records, and seek advice on whether a specific clause is likely to be treated as one-sided if a dispute over possession delay or compensation arises.
References & Further Reading
This article references the following statutes, rules and judicial decisions. Case citations link to the fuller discussion in our Legal Updates archive, verified against primary sources at the time of writing.
- Real Estate (Regulation and Development) Act, 2016: Section 2(za) (parity in interest rates) and Section 18 (compensation for delay).
- See also our Legal News coverage of K-RERA's reiteration of the interest parity requirement.