Builder-buyer agreement: Better after Rera, but buyers must remain vigilant

Builder-buyer agreements tended to be one-sided. "Delivery schedules frequently stated 36-42 months but were vague about when this period began

The Supreme Court of India recently ruled on the forfeiture clause in builder-buyer agreements. The case involved Godrej Projects Development and a buyer who had booked a flat in the Godrej Summit project in Gurgaon. Upon cancellation of the booking by the buyer, the builder sought to forfeit 20 per cent of the basic sale price (BSP) according to the agreement. However, the National Consumer Disputes Redressal Commission (NCDRC) and the Supreme Court deemed this excessive and ruled that the deduction cannot exceed 10 per cent of BSP. The case has focused the spotlight on builder-buyer agreements and the need