Know Your Rights: Can a builder increase the flat price after booking?

Buying a property is tricky and can be afflicted by false promises and vague agreements, which sometimes leads to legal disputes. This includes builders increasing the price of the property after receiving the advance. If the agreement has been oral and not clearly locked in writing, the buyer has limited protection. Buyers often assume the quoted price is final, while developers treat it as provisional. This is where a clearly written agreement becomes mandatory.Written agreement for cost finalisationBuyers must only treat a formally written agreement as a declaration of the final price.The agreement must clearly mention the total cost of the property, payment schedules and any charges if they exist. Once the agreement is made, the mutually agreed price is legally binding under the Real Estate (Regulation and Development) Act. This means a builder cannot increase the price after the contract has been made, especially when the agreement clearly defines the total consideration.Under Section 13 of RERA, the promoter cannot accept more than 10% of the flat’s cost as an advance or application fee before entering into a registered Agreement for Sale. Without this law, the builder could trap you in because of the amount you already paid and demand additional charges before an agreement is made.Additionally, according to RERA, a property has to be sold based on its carpet area, the total liveable floor inside a property, not the super built‑up area that includes the thickness of walls, balconies or shared spaces like lobbies, and elevators. Thus, preventing the builders from inflating prices by changing the area definition mid‑way.Moreover, under the Indian Contract Act of 1872, once parties sign a contract on an agreed price, it becomes binding and cannot be unilaterally increased by the builder.What you must know as a buyerThe problem arises because builders rely on technical clauses and vague statements that are not properly explained during discussions with the buyers. Whereas buyers mostly focus on the headline price and often ignore what is written in the fine print.As a buyer, you have the right to know about the exact carpet area and a clear breakdown of cost, any design change, before signing the agreement, and the same should be reflected in the agreement.In the agreement, you must also carefully check for any clauses stating that the price can be increased after the agreement.If a dispute arises, you can file a complaint with the RERA authority of the state in which the project is located.