What to Check Before Signing a Property Agreement | Sirf Broker

Most problems in Indian real estate do not start with possession. They start with the agreement.

A client falls in love with a property. The negotiation goes well. The price is agreed. Everyone is in a good mood. And in that momentum — in the relief of finally finding the right place — the agreement gets signed without being read carefully.

Three months later, the possession date mentioned in the agreement turns out to be vague. Or the carpet area is different from what was discussed verbally. Or there is a clause that restricts resale for two years. Or the payment schedule has a penalty structure that the client did not notice.

None of this is unavoidable. All of it is preventable — if the right checks happen before the signature goes on the document.

For brokers, this is also a professional responsibility. A client who signs a problematic agreement does not just have a legal headache. They have a broker they no longer trust. And in Indian real estate, where word-of-mouth drives so much business, a client who feels they were not guided through this moment properly is a client who will not refer anyone — and may actively warn others.

This guide covers everything that should be checked — and explained — before a property agreement is signed. Whether the broker is working with a first-time buyer, an investor, or a seasoned client, these checks apply every time.

1. Understand Which Agreement You Are Actually Signing

Before checking the contents of any agreement, the first thing to clarify is which document is actually being signed — because not all property agreements are the same, and clients frequently confuse them.

The main agreement types in Indian real estate:

Each of these has different legal implications, different requirements, and different things to check carefully.

A client signing an Agreement to Sell does not own the property yet — but they have made a legally binding commitment. A client signing a Builder Buyer Agreement is committing to a payment schedule that may run for years.

The broker’s job is to make sure the client understands which document they are signing and what it actually means — before the pen touches paper.

2. Verify the Seller’s Identity and Ownership

This check should happen before the agreement is even drafted — but it must be confirmed again before signing.

In Indian real estate, property disputes frequently arise from ownership confusion. A seller who is not the actual legal owner. A property that is jointly owned, but only one owner has signed. A property with multiple legal heirs where not all have consented. A power of attorney situation that has expired or is being misused.

What to verify about the seller:

• Government-issued ID — Aadhaar, PAN, or passport of the person signing the agreement. The name must match the name on the property title documents exactly.
• Title document ownership — The seller’s name must appear clearly on the sale deed, allotment letter, or conveyance deed of the property.
• Joint ownership — If the property is jointly owned, all co-owners must sign the agreement. One owner cannot sell without the consent of the others.
• Power of Attorney — If someone is signing on behalf of the owner, the PoA must be verified carefully. It should be registered, current, and specifically authorise the sale of this property.
• Legal heir situations — If the property was inherited, check whether probate has been completed and whether all legal heirs have consented to the sale.

A broker who asks for these documents before the agreement stage — not after — is doing their job. A broker who assumes this has been sorted and moves forward anyway is creating a risk for everyone.

3. Check the Title — Is the Property Legally Clear to Sell?

This is the most important legal check in any property transaction — and the most frequently skipped.

A clear title means the seller has the legal right to sell the property, there are no disputes or encumbrances on it, and the buyer will receive clean ownership after the transaction.

An unclear title can mean years of legal dispute after the purchase — even if the registry goes through smoothly.

What title verification includes:

• Original title documents — The chain of ownership from the first owner to the current seller. In older properties, this chain can go back decades. Any gap in the chain is a red flag.
• Encumbrance certificate — A document from the sub-registrar’s office showing whether the property has any loans, liens, or legal charges against it. This should cover at least the last 12–15 years.
• RERA registration — For under-construction properties, the project must be registered with the state RERA authority. Check the RERA portal directly — do not rely on the builder’s word alone.
• Khata and mutation records — In most Indian states, the property should be properly recorded in municipal records in the current owner’s name.
• Court cases — Ask specifically whether the property is involved in any ongoing litigation. This is not always volunteered.

Title verification requires a lawyer — not just a broker. If a client is proceeding without one, the broker should strongly recommend that they engage a property lawyer before signing anything.

4. Confirm Every Detail That Was Discussed Verbally Is in the Agreement

This is one of the most common sources of post-agreement disputes in Indian real estate — and one of the most preventable.

Things that were discussed verbally during the negotiation — fixtures included in the price, a parking spot, the possession date, the exact carpet area, and what happens if the deadline is missed — frequently do not make it into the written agreement.

What is not in the agreement does not legally exist.

What must be confirmed in writing before signing:

• Property description — Full address, survey number, floor, flat number, building name, wing — whatever uniquely identifies the specific unit being purchased
• Carpet area and super built-up area — Both must be stated clearly and separately. Clients paying for the carpet area should confirm that the carpet area is correct.
• Agreed price — The total consideration amount, in numbers and words
• Payment schedule — Every instalment, every due date, and every milestone linked to a payment
• Token amount already paid — The amount paid, the date it was paid, and that it will be adjusted against the total consideration
• Possession date — Specific and clear. Not “approximately Q2 2026” but an actual date — or at minimum, a specific outer limit with consequences if it is missed.
• Penalty for delay — What happens if the seller or builder does not deliver by the agreed date
• What is included in the sale — Fixtures, fittings, parking spot, storage unit, club membership, white goods if any — whatever was agreed verbally
• What is excluded — Equally important. If the seller is taking the modular kitchen or the air conditioners, that should be stated clearly.

If something was agreed in conversation but is not in the document, ask for it to be added before signing. A seller or builder who refuses to include a verbal commitment in writing is telling you something important.

5. Read the Payment Schedule and Penalty Clauses Carefully

In under-construction properties and builder agreements, especially, the payment schedule and associated penalty clauses deserve very careful attention.

Builders structure payment schedules to favour themselves, with penalties for delayed payment from the buyer that are often significantly stricter than the consequences for delayed possession by the builder.

What to check in the payment schedule:

• Are all instalment amounts clearly stated — in numbers and linked to specific milestones or dates?
• What is the penalty for late payment by the buyer — typically 12–18% per annum on delayed amounts in most builder agreements?
• What is the penalty for delayed possession by the builder — this is often far smaller, or buried in vague language?
• Is there a grace period clause — where the builder can delay possession by a certain number of months without any penalty?
• What happens if the buyer needs to cancel? Is the booking amount refundable, partially refundable, or non-refundable?
• Are there any conditions under which the builder can cancel the allotment, and what notice period applies?

RERA has improved builder accountability on possession timelines significantly. But the agreement must still be read carefully — RERA protection only applies to RERA-registered projects, and the agreement still defines the specific terms.

6. Check the Stamp Duty and Registration Requirements for This Agreement

Not all property agreements need to be registered immediately — but understanding the stamp duty and registration requirements before signing is important.

Getting this wrong can have legal and financial consequences.

Basic rules in most Indian states:

An unregistered agreement has limited enforceability in Indian courts. A broker who allows a client to sign an agreement without understanding the registration requirement has left them exposed.

The stamp duty rates vary by state and sometimes by locality within a state. Always verify the current rate for the specific property before the agreement stage — not after.

7. Understand the Dispute Resolution Clause

Most property agreements in India include a dispute resolution clause — and most clients never read it.

This clause determines what happens if something goes wrong. And in Indian real estate, things go wrong often enough that this matters.

What to look for in the dispute resolution clause:

• Jurisdiction — Which court or authority has jurisdiction over disputes? This should match the location of the property, not be shifted to a city convenient for the builder.
• Arbitration clause — Many builder agreements include a clause requiring disputes to go to arbitration rather than court. This is not always in the buyer’s interest — arbitrators are often appointed by the builder, and arbitration awards can be harder to challenge.
• RERA jurisdiction — For registered projects, RERA provides a faster dispute resolution mechanism. The agreement should not contain any clause that attempts to waive the buyer’s right to approach RERA.
• Notice period for complaints — Some agreements require the buyer to give written notice within a specific number of days of a problem arising. Missing this window can affect the ability to claim remedies.

If the dispute resolution clause feels one-sided or confusing, a property lawyer should review it before signing. This is not optional for high-value transactions.

8. Check for Hidden Charges — What Is Not in the Base Price

In Indian real estate — especially in new projects — the base price quoted during negotiation is rarely the amount actually paid at the end.

There are additional charges that are either buried in the agreement or not mentioned at all until later in the payment process.

Common additional charges that clients are caught off-guard by:

Before signing, the client should ask for a complete cost sheet — every charge, every amount, every due date. And then compare it to the agreement.

If there are charges on the cost sheet that are not in the agreement, ask why, and ask for them to be included.

9. Verify the Broker’s Role Is Acknowledged — and Commission Is Agreed in Writing

This one is specifically for brokers — and it is important.

In Indian real estate, brokerage disputes are common. After a deal closes, sellers occasionally deny that the broker was involved, or claim the commission agreement was different from what was discussed.

The protection against this is simple: get the commission agreement in writing before the property agreement is signed.

What should be documented:

• The broker’s name and contact details
• The property being transacted
• Who is responsible for paying the brokerage: buyer, seller, or both
• The agreed brokerage amount or percentage
• When it is payable — at agreement, at registry, or in instalments
• Signatures from the relevant parties

This does not need to be a formal legal document. A clear WhatsApp message confirming the terms — followed by a reply acknowledging them — is better than a verbal understanding.

A broker who secures this confirmation before the agreement stage is protecting their own income — and demonstrating the same professional standard they are asking their client to follow in the main transaction.

10. Never Let a Client Sign Under Pressure

This final point is a professional responsibility — not a checklist item.

In Indian real estate, manufactured urgency is common. “Another buyer is ready.” “The price goes up tomorrow.” “The owner wants a decision by tonight.” Sometimes this urgency is real. Very often it is not.

A broker who allows — or worse, encourages — a client to sign an agreement they have not fully understood is not serving the client. They are serving the deal.

The check every broker should run before any agreement is signed:

• Has the client actually read the agreement — or just the summary?
• Are there any clauses the client has not asked about that they should understand?
• Is the client signing because they are genuinely ready — or because they feel pressured?
• Has a lawyer reviewed the agreement for a high-value transaction?
• Are all the verbal commitments reflected in the written document?

If any of these answers is uncertain, the signing should wait.

A deal that closes one day later because the client needed time to read the agreement properly is a better deal than one that closes today with a problem that surfaces six months later.

The brokers who are known for guiding clients carefully through this moment are the brokers who never have to worry about their reputation. It builds itself — one careful, honest transaction at a time.

A Quick Pre-Signing Checklist for Brokers

Use this before every agreement signing:

• Seller identity verified — ID matches title documents
• All owners or legal heirs have signed or consented
• Title is clear — encumbrance certificate checked
• RERA registration confirmed for under-construction projects
• All verbally agreed terms are in the written agreement
• Carpet area and super built-up area are both stated clearly
• Payment schedule complete — milestones, amounts, dates
• Penalty clauses were read and explained to the client
• Additional charges confirmed and documented
• Stamp duty and registration requirements understood
• Dispute resolution clause reviewed
• Brokerage agreement in writing
• Client has had adequate time to read — no manufactured urgency
• Lawyer involved in high-value or complex transactions

What Good Brokers Do at the Agreement Stage

They do not rush it. They do not treat it as a formality between the negotiation and the commission. They treat it as one of the most important moments in the entire transaction — because it is.

A client who is guided carefully through the agreement stage does not just close the deal. They remember the broker who made sure they understood what they were signing. They trust them more at every stage that follows. And when a friend asks for a broker recommendation, they do not hesitate.

The agreement stage is where careful brokers separate themselves from careless ones. The difference shows up immediately — in client confidence, in post-deal complications, and in the kind of reputation that either builds or damages itself one deal at a time.