(1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the particulars of development of the project including the construction of building and apartments, along with specifications and internal development works and external development works, the dates and the manner by which payments towards the cost of the apartment, plot or building, as the case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default, and such other particulars, as may be prescribed.
Legal Commentary & Landmark Judgments: Section 13
Section 13 establishes a strict statutory cap prohibiting promoters from accepting more than ten percent of the apartment or plot cost as an advance payment or application fee without first executing and registering an Agreement for Sale.
Never disburse booking amounts exceeding 10% of property cost until the developer furnishes the registered Agreement for Sale; any demand for 15-20% under 'booking schemes' constitutes an actionable offence under Section 61.