Before You Sign That Sale Agreement: The Clause That Saved a Homebuyer
Introduction: Why Reading Your Sale Agreement Matters
When buying a home, especially in India’s booming real estate market, many buyers believe that a RERA-approved project means everything is safe and clear. But the truth is, RERA registration doesn’t guarantee every clause in the sale agreement is buyer-friendly.
At GharInsight.com, we recently helped a buyer uncover a critical clause that could have seriously limited his rights — even in a RERA-certified project. This is his story, and why you should never skip reviewing your sale agreement carefully.
The Buyer’s Story: Ramesh’s Close Call
Ramesh (name changed), a first-time buyer in Mumbai, had his eyes on a popular RERA-certified project. The builder had sent him the draft Agreement for Sale, and everything looked great.
He was ready to sign and pay a substantial booking amount.
Before proceeding, Ramesh contacted GharInsight.com for a document review — a decision that saved him from a potentially costly mistake.
The Hidden Clause That Changed Everything
Our legal team found this clause buried in the agreement:
“On S. No. AA of AA, Plot No.1 admeasuring 304.00 sq.mtr., there is an existing bungalow of Mr. ABC who has granted his balance FSI to the Builder/Promoter. The flat buyers/society members shall not claim any rights over the area surrounding the bungalow, which is owned and possessed by Mr. ABC only.”
What does this mean for Ramesh — and you?
What This Clause Really Means
| Issue | Risk for Buyer |
|---|---|
| Use of third-party FSI | The builder is using floor space index (FSI) transferred from a private bungalow. This can create legal and structural uncertainties. |
| No rights on open land around the bungalow | Areas that appear as common or green spaces in brochures do not belong to the society or buyers, limiting usage and control. |
| Future redevelopment and control issues | Society members may have no say in that land’s use or redevelopment, potentially impacting property value. |
| Potential resale difficulties | Legal ambiguities scare future buyers, reducing demand and resale value. |
But the Project Was RERA Certified — Isn’t That Enough?
RERA registration confirms the project is legally registered with authorities and basic documents are filed. However, it:
- Does not review every clause of the sale agreement.
- Does not guarantee all terms favor buyers.
This means hidden clauses that impact your rights can still be present.
How GharInsight Helped Ramesh
- Ramesh chose not to sign that risky agreement.
- He avoided losing his savings and legal headaches down the road.
- We helped him find a different RERA-certified project with clear land ownership, no third-party FSI, and full rights over common areas.
Takeaway for Homebuyers
- Check if the builder is using FSI from third-party properties.
- Confirm if buyers will have full rights to all open and common areas.
- Never skip a professional legal review of your sale agreement.
- Remember, RERA registration is necessary but not sufficient.
Why Choose GharInsight.com?
- Expert sale agreement reviews that catch hidden risks.
- Clear reports explaining complex clauses in simple language.
- Comprehensive checks beyond RERA documents.
- Peace of mind before your biggest investment.
Don’t Let a Hidden Clause Destroy Your Dream Home
If Ramesh hadn’t checked, he might have signed away important rights without knowing. Be smart. Be safe.
👉 Visit GharInsight.com to get your agreement professionally reviewed before you sign or pay.
