A promoter cannot take more than ten per cent of the apartment/plot/building cost as advance or application fee without first entering into a written and r
Finin2min summary
A promoter cannot take more than ten per cent of the apartment/plot/building cost as advance or application fee without first entering into a written and registered agreement for sale.
Source review date: 4 July 2026. Read with the official text and the facts of the transaction.
Legal anchors
- Section 13
- State Agreement for Sale Rules
How to analyse it
- Map all pre-agreement receipts.
- Use the state-notified agreement as the base.
- Reconcile payment schedule to construction milestones.
- Disclose title, plans, specifications and possession.
Practical illustration
A “booking amount” of 15% collected before the registered agreement can breach Section 13 even if labelled refundable.
What can go wrong?
- Side letters contradicting registered agreement
- Arbitrary cancellation forfeiture
- Super area used where law requires carpet area
Evidence pack
- Agreement
- Payment schedule
- Booking form
- Disclosure annexures
Decision workflow
- Freeze the facts and effective date.
- Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
- Prepare a calculation or exposure note.
- Collect the evidence pack before filing, payment, signing or response.
- Record reviewer conclusion and assumptions.
Quick Q&A
Is the result automatic?
No. Map all pre-agreement receipts.
What is the most important control?
Disclose title, plans, specifications and possession.
What should be escalated?
Side letters contradicting registered agreement, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.
Official source trail
Secondary commentary may help interpretation, but it is not the source of law.