7 Red Flags in a Sale Agreement You Shouldn’t Ignore

Most buyers take off a sale agreement the way people remove terms and conditions: fast, optimistic, and reckless. They focus on the price, possession date, and maybe penalties. Meanwhile, the real traps sit quietly in the fine print.

1. Vague or One-Sided Termination Clauses

This clause decides who can walk away and at what cost. Red flag language to watch for:

• Seller can terminate “at its only warning.”
• Buyer penalty entire advance on termination
• Seller’s violation leads only to refund without interest or penalty

If the seller delays possession, fails approvals, or changes specifications, you may still be locked in while the seller can exit freely. What a fair clause should include:

• Equal termination rights for both parties
• Defined waiting periods (e.g., 30–60 days to fix violation)
• Refund with interest if the seller defaults

2. Open-Ended Possession Dates

Tentative or proposed possession date

• Possession linked to unclear incidents (approvals, calamity, market conditions)
• No compensation for delay

You’re paying EMIs and rent while the seller faces zero pressure to deliver.

What you want instead:

• A fixed outer deadline
• Monthly delay penalties
• Right to exit if delay crosses a entrance
• If there’s no cost for delay, expect one.

3. Unrestricted Changes to Layout, Area, or Specifications

Alterations, Modifications, or Specifications This is where buyers get quietly cheated.

• Seller may change layout, size, or materials as considered necessary.
• Area variations allowed up to 10–15% without price adjustment
• Changes don’t require buyer consent
• If the seller can change everything but the price, walk.

4. Hidden Charges and Cost Escalation Clauses

• Including but not limited to charges
• Buyer bears future taxes, levies, infrastructure fees
• No cap on maintenance deposits or club charges

Why this matters:

Your ₹50 lakh property becomes ₹60 lakh by legal possession.

What to demand:

• Exhaustive list of charges
• Clear caps or formulas
• Seller bears costs until possession
• If costs are undefined, they will increase.

5. One-Sided Penalty Clauses

Liquidated Damages or Penalties: This clause reveals who really holds power.

• Buyer delay:  high interest or cancellation
• Seller delay: token compensation or none
• Penalties rejected due to seller’s circumstances

Your ₹50 lakh property becomes ₹60 lakh by legal possession.

What to demand:

• unlimited list of charges
• Clear covers or formulas
• Seller bears costs until possession
• If costs are undefined, they will expand.

5. One-Sided Penalty Clauses

• This clause reveals who really holds power.
• Buyer delay: high interest or cancellation
• Seller delay: token compensation or none
• Penalties rejected at seller’s discretion

You miss one payment, and you’re penalized. Seller delays 18 months? Market conditions.

What balance looks like:

• Symmetrical penalties
• Real compensation for possession delays
• No discretionary waivers
• If accountability flows only upward, you’re funding someone else’s risk.

6. Dispute Resolution in Seller-Friendly Jurisdictions

This decides where you’ll fight if things go wrong.

• Negotiation chosen solely by seller
• Jurisdiction in a distant city
• Buyer rejects right to civil remedies

A strong legal claim is not useful if enforcing it costs more than the property

What to push for:

• Neutral Power
• Mutual appointment of judge
• No general exemption of statutory rights
• If justice is inconvenient, it’s intentional.

7. Broad Force Majeure Clauses 

• Allows indefinite suspension of obligations
• No buyer exit rights during prolonged force majeure
• The seller can legally freeze the project while holding your money.

What’s fair:

Narrow definition of unavoidable casualty

Time limits (e.g., 5–10 months)

Buyer’s right to refund if delays keeps going

If an unavoidable casualty includes commercial hardship, it’s not force majeure; it’s mismanagement.

Final Reality Check

• Most buyers don’t lose money because they chose the wrong property.
• They lose money because they trusted the agreement.
• A sale agreement is not paperwork; it’s a risk allocation document. Every vague sentence shifts risk from the seller to you.

Stop scrolling if you haven't read page 17 yet. Go & read it now.