In a significant ruling, the Telangana Real Estate Regulatory Authority dismissed a homebuyer’s complaint seeking interest on ₹62.5 lakh, holding that the dispute arose from differences over sale deed drafting rather than any violation of law by the developer.
The Authority clarified that under the Real Estate (Regulation and Development) Act 2016, there is no mandatory or uniform format prescribed for a sale deed, and therefore, buyers cannot insist on specific clauses beyond legal requirements.
The case involved a homebuyer who booked an apartment in a residential project in Hyderabad in 2024 and paid over ₹62.5 lakh, which accounted for more than 65% of the total consideration of approximately ₹93 lakh.
Before final registration, the developer shared a draft sale deed for review and requested the buyer to suggest any corrections.
Upon reviewing the draft, the buyer raised objections, claiming that certain key details were missing, including:
Title-related disclosures
Parking allocation details
Tax Deducted at Source (TDS) references
Other registration-related particulars
The buyer insisted that these changes be incorporated before proceeding with the final payment and registration.
Developer’s Stand on Sale Deed Format
The developer maintained that the draft sale deed complied with all applicable legal requirements and refused to make the requested changes.
According to the order, the developer’s representatives informed the buyer that the draft was final and non-negotiable, and gave the option to either accept the document or withdraw from the transaction.
Faced with this situation, the buyer chose to withdraw from the purchase and subsequently filed a complaint seeking a full refund along with interest.
Refund Made but Interest Disputed
During the proceedings before TG RERA, the developer refunded the entire amount of ₹62.5 lakh paid by the buyer.
However, the developer contested the claim for interest, arguing that there was no delay, deficiency, or statutory violation on its part.
Key Observation: No Mandatory Sale Deed Format Under RERA
While examining the matter, TG RERA made a crucial observation regarding the legal framework.
It held that:
There is no prescribed or mandatory format for a sale deed under RERA or the Telangana RE(R&D) Rules, 2017
RERA provides a model format only for the Agreement for Sale, not for the final conveyance document
The sale deed is governed by general property and registration laws, along with the contractual understanding between the parties
The Authority emphasized that the purpose of RERA’s model agreement is to ensure transparency at the pre-conveyance stage, not to standardize the final sale deed format.
Buyer Cannot Insist on Drafting Preferences
TG RERA further clarified that a homebuyer cannot demand inclusion of clauses or formats that are not legally mandated.
It observed that the buyer’s objections were largely related to personal preferences in drafting rather than any established violation of statutory provisions.
The Authority held that:
The contents of a sale deed depend on mutual agreement
There must be proof of legal non-compliance to claim relief
Mere disagreement over wording or structure does not constitute a valid legal dispute under RERA
Complaint Dismissed Due to Lack of Merit
After evaluating the facts, TG RERA concluded that:
There was no evidence of deficiency in service
The developer had fulfilled its obligation by refunding the entire amount
No statutory violation under RERA was established
Accordingly, the Authority dismissed the complaint, stating that the claim for interest was “devoid of merit”.
Legal Significance of the Ruling
This ruling has important implications for both homebuyers and developers:
It clarifies that sale deed formats are flexible and governed by general law
It limits disputes arising from subjective drafting disagreements
It reinforces that RERA relief is available only in cases of proven violations
For developers, the decision provides clarity that compliance with legal requirements is sufficient, even if buyers seek additional clauses.
For homebuyers, it highlights the importance of reviewing agreements carefully before entering into transactions, as not all preferences can be enforced legally.
Homebuyers should:
Verify RERA registration and project details before investing
Carefully review the Agreement for Sale, which has a standard format under RERA
Understand that the sale deed may not follow a uniform structure
Raise concerns early but recognise limits of enforceability
