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15+ years as General Counsel to technology, cloud & AI companies
Agreement between Builder and a Broker for Selling the Flats to be constructed
Open Legal LibraryUpdated 3 Jul 2026
AGREEMENT BETWEEN BUILDER AND BROKER FOR SELLING THE FLATS TO BE CONSTRUCTED
THIS AGREEMENT is made at ____________ on this ______ day of ____________, 20____, between ABC Construction Co. Ltd., a company incorporated under the Companies Act, 1956 and having its registered office at ____________________ (hereinafter called "the Builder", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the ONE PART;
AND
Shri XYZ, son of Late Shri ____________________, resident of ____________________ (hereinafter called "the Broker", which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include his heirs, legal representatives, executors and administrators) of the OTHER PART.
WHEREAS the Builder is constructing residential flats at ____________, more particularly described in the Schedule hereunder written, and wants to sell those flats, and for the said purpose the services of the Broker are required;
AND WHEREAS the Broker has approached the Builder and expressed his consent to act as broker for the sale of the flats on the terms and conditions mutually agreed upon.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. The Builder appoints the Broker for selling the flats being constructed by him, more particularly described in the Schedule hereunder written, at the price and on the terms and conditions laid down in Annexure 1 to this agreement.
2. The Broker will be entitled to commission at the rate of 5 per cent on the cost of the flats booked by him.
3. The Builder hereby represents and warrants that he has clear and marketable title to the flats, free from any encumbrance, charge, lien, mortgage or attachment. The Builder also represents and warrants that the material used in the flats is of the best quality.
4. The Builder hereby gives a period of six months from the date hereof for the sale of the flats described in the Schedule hereunder written, and the Broker shall not be authorised to sell the flats after the period of six months.
IN WITNESS WHEREOF the parties have set their respective hands to these presents on the date, month and year hereinabove written.
SCHEDULE
____________________
ANNEXURE 1
____________________
Signed and delivered by ABC Construction Co. Ltd., through the hands of Shri ____________________, Managing Director:
________________________
Signed and delivered by XYZ:
________________________
WITNESSES:
1. ________________________
2. ________________________
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About this template
What is this template?
This document is a short-form brokerage mandate for the sale of real estate still under construction. It contains a specific warranty regarding building material quality and a fixed commission percentage of 5 percent. It is not a property sale deed or a project management agreement.
When should you use it?
Use this when a developer needs a professional agent to market specific flats for a defined half-year period. If the arrangement is for general marketing services rather than specific unit sales, use a Service Agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Appointment | The Builder appoints the Broker to sell specific flats at the prices and terms defined in Annexure 1. |
| 2 | Commission | The Broker earns a commission of 5 per cent on the total cost of any flats they successfully book. |
| 3 | Representations and Warranties | The Builder warrants they hold clear marketable title and have used best quality materials in the construction. |
| 4 | Duration of Agency | The Broker's authority to sell the flats expires exactly six months from the date of the agreement. |
Who it's for
- a construction company seeking to outsource the sale of new residential flats to a third-party agent
- an individual real estate broker taking on a time-limited exclusive or non-exclusive sales mandate
- a builder in India operating under the legal framework of the Companies Act 1956
How long it runs and how it's signed
How long
Runs for a fixed period
Stated duration
six months
Signed by
Managing Director (for Builder), Broker
Witness
Required
Notarisation
Not required
Law it's drafted under
Governed by
Companies Act, 1956
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Fri Jul 3rd, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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