Section 13

Section 13 addresses one of the most common pre-RERA homebuyer complaints: builders who collected 20–30% of the flat price as 'booking amount' before signing any agreement, then either didn't start construction or changed terms unilaterally, and claimed the booking amount was 'forfeited' if the buyer objected. **The 10% cap:** No more than 10% of the unit price can be collected — as advance, application fee, or booking amount — before a formal written agreement for sale is signed. For a ₹1 crore flat, the maximum pre-agreement collection is ₹10 lakh. Everything above this threshold requires a signed agreement first. **Agreement must be in prescribed form:** The agreement cannot be a loose 'booking form' or 'letter of allotment' — it must be in the format prescribed by the state rules. The prescribed format includes: carpet area (not built-up or super built-up), project specifications, possession timeline, payment schedule, and penalty for default by either party. **Mandatory registration (Section 13(2)):** The agreement must be registered under the Registration Act 1908 — making it a public document admissible as evidence without further proof. Before RERA, many builders handed over unregistered 'buyer agreements' which were difficult to enforce. **Carpet area in agreement:** Under state rules, the agreement must mention the carpet area of the unit (not built-up or super built-up area). Any shortfall in carpet area at possession entitles the buyer to compensation under Section 18. **Practical impact:** This provision ended the pre-RERA practice of 'pre-launch' sales where builders collected large amounts with no binding written commitment. It also ended 'allotment letter + demand notes' structures where buyers had no agreement for years. **State variation:** Maharashtra requires the agreement to be on stamp duty of 1% of the agreement value (subject to deduction if registration fee is paid on possession). Registration is mandatory — unregistered agreements are not RERA-compliant.