Last Updated on 10 months by ChennaiRealties


When purchasing a property, signing the builder buyer agreement (BBA) is the crucial first step. This agreement formalizes the buyer’s commitment to the property and establishes the terms and conditions of the transaction, ensuring legal protection and clarity for both parties involved. In this article, we will explore the significance of the BBA, its contents, the need for registration, and important considerations before signing.

Understanding the Builder Buyer Agreement (BBA):

A builder buyer agreement is a legally binding document that specifies the terms of purchase between a builder or promoter and a homebuyer. It covers various aspects such as property details, pricing, payment modalities, delivery details, default and delay conditions, among others. The BBA is a key document governing the interests of homebuyers, providing legal protection and clarity in their relationship with the real estate developer.

Key Points in the Builder Buyer Agreement:

The BBA typically includes the following details:

1. Property details: Includes the address, plot number, and size of the property.

2. Price and payment terms: Outlines the total price, payment schedule, and consequences of defaulting on payments.

3. Possession date: Specifies the date on which the buyer will take possession of the property.

4. Construction timeline: Outlines the completion timeline and consequences of any delays.

5. Quality of construction: Specifies the expected construction quality and consequences of defects.

6. Alterations and modifications: Outlines the process for authorized property changes and consequences of unauthorized modifications.

7. Maintenance and upkeep: Specifies the responsibilities of the builder and the buyer for property maintenance.

8. Dispute resolution: Outlines the process for resolving any disputes between the builder and the buyer.

9. Cancellation and refund: Specifies the circumstances under which the buyer can cancel the agreement and the consequences, including refunds.

10. Disclosure of non-balcony carpet area: Ensures transparency by disclosing the non-balcony carpet area of the builder flat/apartment.

11. Clear lineation of super area and carpet area: Ensures clarity and confirms the advertised area mentioned in brochures.

12. Buyer’s consent for future building layout changes: Specifies that any changes in the building layout require the buyer’s consent.

13. Clear dimensions of rooms/units: Provides precise dimensions without complex numbers to protect the rights of allottees.

14. Settlement of undisclosed additional charges: Specifies the settlement of undisclosed charges like membership fees or electricity connection.

15. Memberships in club/common areas: Specifies whether club areas or other common areas are exclusive to homebuyers or open to the general public.

16. Rights to reserved parking: Specifies the buyer’s rights to reserved parking to avoid future paid parking scenarios.

17. Consistency with material specifications: Ensures that the material specifications mentioned in brochures are also specified in the BBA.

18. Maintenance contracts and upkeep: Falls under the jurisdiction of the Residents Welfare Association (RWA) as per RERA rules and the Apartment Owners Act.

19. Indemnity clause: Provides protection to homebuyers against losses in case of legal disputes regarding the property.

Important Considerations:

Before signing the BBA, buyers should consider the following:

1. Seek legal assistance: Real estate lawyers can provide guidance, especially when the terms and conditions are complex.

2. Thoroughly understand the terms: It is essential to understand each clause and term before signing the agreement.

3. Verify personal details: Check that personal information, such as name, father’s name, address, PAN card, and Aadhaar card, are accurate.

Registration of Builder Buyer Agreement:

In Tamil Nadu, registration of the BBA is mandatory, even before the enactment of RERA. The charges include a 1% stamp duty and 1% registration charges


The builder buyer agreement (BBA) plays a crucial role in ensuring a secure and transparent property acquisition process. It establishes the terms and conditions between the buyer and the builder, providing legal protection and clarity for both parties. By including essential details such as property specifications, payment terms, possession dates, and dispute resolution processes, the BBA safeguards the interests of homebuyers. However, given the complexity of the agreement, seeking legal assistance and thoroughly understanding the terms are highly recommended.

Disclaimer: The information contained in this article is for educational and informational purposes only. It is not intended to be legal or financial advice. Readers are advised to do their own independent research and consult with professionals before making any decisions based on the information in this article-Edit





One response to “Builder Buyer Agreement: A Comprehensive Guide”

  1. Umashankari avatar

    Is builder’s agreement applicable to apartments purchased at chennai before 2013. For an apartment purchased in 1988 there is no builder’s agreement . Is it ok? Who will provide this now?

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