What is the difference between BBA, ATS and SA in Real Estate ?

Buying a home in India involves several legal documents. If you are new to real estate investment or buying a flat, you might have come across terms like Builder‑Buyer Agreement (BBA), Agreement to Sell (ATS), and Sale Agreement or Sale Deed (SA). These are not just fancy names, they mean different things legally and practically. Understanding the difference will protect your rights, help avoid fraud, and ensure you really own what you paid for.

Why should you care?

• Real estate deals are expensive and take time (often years, for under‑construction properties).
• Legal mistakes (wrong agreement, unregistered documents) can cost you a home, money, or legal trouble.
• New laws like RERA (Real Estate (Regulation & Development) Act, 2016) have made some of these agreements mandatory and put rules around them.

What is BBA (Builder‑Buyer Agreement)?

Definition & Purpose:

• The Builder‑Buyer Agreement (BBA) is a contract between a builder or developer and the buyer. It is used especially in under‑construction or pre‑construction projects.
• It specifies what the builder promises: things like approvals, building plan, specifications (flooring, finishes), amenities, payment schedule, possession date, penalties for delay, etc. It also spells out what the buyer must do: payments, abiding by the plan, etc.

Legal Requirements under RERA:

• Under RERA, a builder cannot accept more than 10% of the property cost from a buyer without executing a BBA.
• BBA must be registered and should align with the model BBA format prescribed under RERA in each state.

What to check in a BBA?

• Possession date and/or completion timeline with penalties if delayed. 
• Clear definition of areas (carpet area/built‑up/super built‑up) and specifications of finishes.
• Payment schedule linked to construction milestones.
• Refund and cancellation clauses.
• Force majeure clause. 

What is ATS (Agreement to Sell)?

Definition & Use:

• “Agreement to Sell” (sometimes called Agreement for Sale) is a promise or contract that a seller agrees to sell and a buyer agrees to buy under specific conditions in future. It does not immediately transfer ownership or title. 
• Typically used when final Sale Deed cannot be executed immediately (e.g. under‑construction property not complete, or seller needs to clear title or approvals).

Legal status:

• ATS is an executory contract: the rights and obligations are to be performed later.
• Under Indian law (Transfer of Property Act Sec. 54), ATS does not create interest or charge in the immovable property by itself. Ownership remains with the seller until the Sale Deed is registered.
• If the seller doesn’t honour ATS, the buyer can sue for specific performance (i.e. force the seller to sell as per agreement) or damages.

What does ATS normally contain?

• Price and total consideration plus how much advance and when next payments are due.Property details: flat number, carpet area, parking, improvements, amenities. 
• Possession date and grace period for delays. 
• Cancellation/refund terms. 

What is SA or Sale Deed? 

Definition & Purpose:

• The Sale Deed (sometimes called ‘SA’ or simply ‘Deed of Sale’ or “Sale Agreement” in casual talk) is the final legal document that transfers title (ownership) of the property from the seller to the buyer. It’s executed after all conditions under ATS/BBA are fulfilled, payment completed, construction finish, approvals obtained etc. 
• Once a Sale Deed is executed and registered under the Registration Act, only then the buyer is the legal owner. Without registration, title does not legally change hands. 

Key features of Sale Deed:

• Detailed property description, seller & buyer details. 
• Clear mention of amount paid & mode. 
• Transfer of all rights, interests, claims, title; once registered, seller loses ownership. 
• Requires payment of stamp duty & registration fees as per state laws. 

Some Legal Clarifications & Recent Judgements

• The Supreme Court has clarified that even if an ATS is registered, it does not transfer title. Only a registered Sale Deed (conveyance deed) can confer ownership.
• Under Suraj Lamp & Industries vs State of Haryana (Supreme Court, 2011), it was held that an ATS not registered as a conveyance deed fails to transfer any interest in property. 
• Under RERA, builders/promoters must follow certain norms in BBA: they must follow model BBA, ensure buyer protection, etc. 

Practical Tips for Buyers & Investors

1. Always check RERA registration of a project. If BBA is registered under RERA, that’s a good sign.
2. Don’t pay heavy upfront without BBA: Builders should not take large amounts (more than 10%) before signing a BBA.
3. Read all terms carefully, especially those regarding delays, penalties, cancellation, finishing, specifications.
4. Ensure all the approvals and certificates are in order (provisional approvals, land title, municipal permissions, occupation certificate, etc.). BBA or ATS should reference them.
5. Verify property details: Carpet area vs super‑built up, parking slot(s), amenities promised.
6. Title verification: Check that title is clear, free from encumbrances, that seller or builder has the right to sell.
7. Sale Deed registration is essential. Without registration, ownership may not legally vest in you.

Conclusion

• The BBA (Builder‑Buyer Agreement) is your first strong legal shield with a builder.
• The ATS (Agreement to Sell) is a contract for the future sale, helpful when everything isn’t final, but it doesn’t give you legal ownership yet.
• The SA or Sale Deed (or Deed of Sale or Conveyance Deed) is what finally transfers the property rights to you; must be stamped & registered.

Buying a house is a serious investment, so make sure that you keep your documents clean, and consult a property lawyer if in doubt. With the right legal understanding, you can avoid costly disputes, safeguard your money, and ensure your investment gives you the home or return you intended.

In case you don’t want to go through any such hassle, then Inframantra is here to help. All you have to do is choose one of the best residential properties from our inventory, and enjoy a seamless documentation process and home-transition experience. Explore the best properties in Gurgaon, Noida, Pune, and Jaipur at the prime locations of the city, and book them at a competitive price. All the future-ready properties listed in Inframantra website are developed by the best real-estate companies in Gurgaon, Noida, Pune, and Jaipur, offering best-quality construction, thoughtfully-planned layout, and world-class amenities to its residents to enjoy.

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