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Do not pay a substantial booking amount until you can verify the project on the applicable state or Union Territory RERA portal, inspect the title and approval documents, receive a written cost sheet, and review the allotment-letter and agreement-for-sale drafts. In India, a promoter generally cannot accept more than 10% of the apartment cost as an advance or application fee before entering into and registering the written agreement for sale, but state rules and the contract control cancellation, deductions and refunds. Treat a brochure, sample-flat promise or broker assurance as unconfirmed until it appears in the RERA disclosures or signed documents.
Start with the project’s legal identity
Your first questions should establish exactly what is being sold. A large development may have separate towers, phases, land parcels and completion dates, so a registration number for the overall brand is not enough.
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Ask for the RERA registration and verify the exact phase
- What is the project’s state-RERA registration number?
- Does that registration cover the tower, phase, unit inventory and promised completion date I am being offered?
- Can I see the promoter disclosures, sanctioned plans, layout, specifications, construction schedule and quarterly updates uploaded to the official portal?
- Is the selling entity the same promoter named in the registration, or is there a landowner, joint-venture company or development partner whose rights must be explained?
Open the official RERA portal yourself rather than relying on a screenshot. Match the registered promoter’s legal name, project address, survey or plot details, approved number of buildings, proposed completion date and available inventory to the sales documents. If the tower or phase is absent, pause the payment and ask why.
Check the promoter’s record and disclosed problems
Ask for a list of projects completed by the promoter during the past five years, including their locations, handover dates and the entity that delivered each one. Search the RERA disclosures and public court or authority records for stalled projects, extension applications, cancelled approvals, mortgage or charge information and material litigation. A polished sales office does not establish a clean delivery history.
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Demand title, encumbrance and approval evidence
RERA registration is not a substitute for an independent title investigation. Ask who owns the land, who has authority to develop it and which documents connect the owner to the promoter.
Documents to request before paying
- Current title deeds and the chain of title showing how the land reached the present owner.
- An encumbrance or charge statement and details of any lender security, attachment, acquisition notice or pending transfer.
- The development agreement, collaboration agreement, power of attorney or joint-venture document where the promoter is not the sole landowner.
- Sanctioned building and layout plans, with the version uploaded to RERA.
- Commencement, environmental, fire, airport-height, utility and other approvals applicable to the site and its stage of construction.
- Evidence of development-authority permissions, land-use conversion and infrastructure commitments where relevant.
Ask which approvals are already in force and which remain conditional or pending. The answer should identify the issuing authority, approval date, covered phase and any conditions. Have a property lawyer independently verify title, encumbrances and the promoter’s authority before making a payment described as non-refundable.
Define the apartment, areas and inclusions
Never book from a plan or sample flat alone. Require a written description that lets you identify the exact apartment and calculate what you are actually buying.
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- What are the apartment number, tower, floor, orientation and sanctioned plan reference?
- What is the carpet area, and what balcony, terrace, utility or exclusive-use areas are attached?
- What undivided interest in common areas and land is associated with the apartment?
- Is parking included, allotted or separately sold? Is it a designated space, a mechanical slot or a right to use common parking?
- Which flooring, doors, windows, sanitaryware, electrical points, fittings, appliances and finishes are included in the specifications?
- Which amenities and common facilities are part of the registered plan, and which are merely illustrative in advertising?
Ask for the specification sheet and sanctioned plan as dated documents. If a sales representative promises a different tile, appliance, view, room dimension or amenity, obtain a written revision that is attached to the agreement. A model apartment can contain upgrades that are not included in the booked unit.
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Get a complete price and payment schedule
A headline rate rarely equals the amount needed to receive possession. Request a cost sheet that separates every recurring, one-time and conditional charge.
| Cost item to identify | Question to put in writing |
|---|---|
| Base apartment price | What is the price for this exact carpet area and unit, and can it escalate? |
| Floor-rise or location premium | What rate applies to this floor, view or orientation, and is it fixed? |
| Parking | Is parking included, separately priced or subject to later allotment? |
| Clubhouse and infrastructure | Are these compulsory charges, and what facility or service do they fund? |
| Maintenance and sinking deposits | What amount is collected, for what period, and who controls it before the owners’ association takes over? |
| Taxes, registration and statutory fees | Which taxes, stamp duty, registration fees and utility connection charges are payable, and are rates estimated or fixed? |
| Escalation or variation | Can the price change because of materials, approvals, area measurement or government levies? State the formula and notice requirement. |
Ask whether every demand is linked to a construction milestone, who certifies that milestone and how an area change will be measured and adjusted. Insist on a receipt identifying the project and the promoter’s designated account for every payment.
Understand the 10% booking limit
Section 13 of the Real Estate (Regulation and Development) Act is commonly applied through state and Union Territory RERA authorities. The Haryana Real Estate Regulatory Authority reproduces the statutory rule: “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.” Rajasthan RERA states the same 10% limit.
For a ₹1 crore apartment, 10% means ₹10 lakh of the apartment cost, not automatically 10% of every tax, deposit or optional service. The precise calculation and procedure can depend on the applicable state rules, so ask the promoter to show the legal basis for the amount requested. A label such as token, expression-of-interest fee, application money or administrative charge does not by itself avoid the rule.
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Questions about the booking payment
- How much is being requested now, and what percentage of the apartment cost is that?
- Will this amount be credited against the price, and when will a receipt and allotment letter be issued?
- Is any part non-refundable? If so, what exact deduction formula, cancellation event and refund deadline apply?
- Must the payment go to the project’s designated account, and will the receipt name the registered promoter?
Do not sign a document that allows the promoter to retain an undefined “token” or impose a discretionary cancellation charge. A lawyer should review any payment request that approaches 10% before an agreement for sale has been executed and registered.
Read the allotment letter and agreement-for-sale drafts first
Ask for the allotment-letter format and the complete agreement-for-sale draft before paying a material amount. Take both to your own lawyer; a promoter’s standard form can still contain terms that materially affect your risk.
Clauses the agreement should make explicit
- The apartment identity, carpet area, balconies or terraces, parking entitlement and undivided common-area interest.
- The approved plans, specifications, internal development works, external development works and the amenities included.
- The total price, each component of additional charges, taxes, escalation limits and the method for correcting an area variation.
- The stage-wise payment schedule and the document or inspection that triggers each demand.
- The date for possession, any defined grace period and the limited circumstances that qualify as force majeure.
- The interest rate payable by the promoter for delay and by the allottee for a payment default.
- The procedure, notice period, deductions and refund timing for cancellation by either party.
- The process for plan changes, construction deviations and obtaining your consent where required.
- The dispute-resolution forum, applicable law and the method for serving notices.
The statutory text describes an agreement that specifies development particulars, specifications, payment dates and method, possession date and default interest. If a sales promise is absent from the draft, assume it is not secured until incorporated.
Ask how your money is protected and where it goes
The Ministry of Housing and Urban Affairs stated on 21 March 2022 that Section 4 of RERA requires 70% of amounts realised from allottees for a real-estate project to be deposited in a separate bank account for land and construction costs. Ask for the project account details and ensure your receipt identifies the registered project and promoter. This rule does not eliminate construction, title or insolvency risk, and it does not make a disputed booking automatically refundable.
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Confirm whether the promoter can demand a payment before the stated milestone, how delayed instalments are treated, and whether a lender’s disbursement schedule matches the agreement. Keep bank instructions, receipts, tax invoices, allotment correspondence and every revised cost sheet in one file.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Pin down possession, delay and refund rights
Possession risk is often more important than a small launch discount. Ask for a calendar date, not merely a construction duration or a month-and-year marketing estimate.
Questions about delivery
- What is the contractual possession date for this phase and tower?
- What events can extend it, and how are those events documented and notified?
- What interest or compensation is payable for delay, and may I choose a refund instead of waiting?
- Which occupancy and completion certificates must be obtained before handover?
- When will conveyance documents, common-area records and control of the owners’ association be transferred?
The Ministry’s 21 March 2022 explanation of RERA says a promoter must refund the amount with interest and compensation when the developer fails to complete or cannot give possession, according to the agreement for sale. The practical rate, procedure and forum depend on the applicable law and contract, so make them readable in the signed agreement rather than relying on a general promise.
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Ask whether you may cancel because of delay, material plan change, title or approval problems, loan refusal or personal reasons. Require the deduction formula, the documents needed to request a refund, the deadline for payment and the account to which the money will be returned. State RERA rules, prescribed forms and contract terms can differ; never assume that “booking amount is non-refundable” is enforceable without examining the full agreement and the circumstances of cancellation.
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Investigate construction quality and defect handling
Request the names and roles of the architect, structural engineer, principal contractor and project-management consultant. Ask how deviations from sanctioned plans are approved, recorded and disclosed to allottees.
Put the after-sales process in the agreement
- Where and how will you report a construction defect, water leak, service failure or missing amenity?
- Who acknowledges the complaint, what response time applies and how is unresolved work escalated?
- What statutory defect-liability period applies in your state, and does the agreement preserve it?
- Who pays for rectification, testing and consequential access costs when the promoter is responsible?
Ask for a pre-handover inspection process and a written snag list. Do not treat a possession letter as proof that every specification and amenity has been delivered; compare the apartment against the signed schedule and sanctioned plans.
Clarify maintenance, utilities and handover charges
Before booking, ask who will maintain the site before the owners’ association takes over, the rate per square foot or unit, the billing period and the services included. Identify separate deposits or connection charges for electricity, water, gas, sewage, internet infrastructure, clubhouse access and backup power. Ask when the association will receive common-area documents, warranties, sinking funds and maintenance records.
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Require a handover list covering keys, meters, certificates, parking records, manuals, warranties and outstanding work. Confirm whether the quoted maintenance deposit is adjustable, refundable or held for a defined period. An open-ended demand at possession can materially change the affordability of the apartment.
Verify the project yourself: a practical sequence
- Search the official state or Union Territory RERA portal. Enter the registration number and compare the legal promoter, address, phase, towers, sanctioned inventory, completion date and latest progress disclosures.
- Download the filed documents. Save the registration certificate, plans, specifications, approvals, title-related disclosures, quarterly updates and any extension or complaint orders.
- Compare the proposed unit. Match the tower, floor, carpet area, parking and possession date in the sales sheet to the registered information.
- Request missing documents in writing. Ask the developer to explain any mismatch instead of accepting a verbal correction.
- Obtain an independent legal report. Give your lawyer the title chain, encumbrance material, development agreement, approvals, RERA filings and draft agreement.
- Pay only through traceable banking channels. Use the account and payment description identified in the documents, then retain the receipt and acknowledgement.
Use a side-by-side decision test when projects remain
| Comparison area | What to measure |
|---|---|
| Total cost | Apartment price plus taxes, registration, parking, deposits, utilities, maintenance and realistic financing cost. |
| Space and inclusions | Carpet-area efficiency, balcony or terrace, parking, specifications and amenities included in signed documents. |
| Legal position | RERA status, title, encumbrances, approvals, development rights and lender charges. |
| Delivery risk | Promoter’s completed-project record, current construction evidence, contractual possession date and delay remedy. |
| Cash-flow exposure | Booking amount, milestone frequency, loan conditions, escalation clauses and the 70% project-account disclosure. |
| Exit rights | Cancellation triggers, deductions, refund deadline, interest and dispute forum. |
| Quality and service | Specifications, inspection rights, defect process, response times and association handover. |
| Location and operations | Access, utilities, promised infrastructure, recurring maintenance and practical amenity availability. |
Red flags that justify stopping the payment
- The promoter refuses to share the RERA number, draft agreement or title and approval documents.
- The exact tower or phase does not appear on the official portal, or the advertised possession date conflicts with the filing.
- You are pressured to pay more than 10% before a written agreement for sale is entered into and registered.
- The cost sheet contains unexplained “other” charges, open-ended escalation or an undefined cancellation deduction.
- Payment is requested into a personal, unrelated or changing bank account, or a receipt will not identify the project.
- Promises about parking, views, amenities, specifications or refunds are verbal only.
- The promoter will not allow independent legal review or gives a deadline designed to prevent it.
A booking amount should be the final step after verification, not the price of obtaining basic information. If the project identity, land rights, approvals, price, agreement terms or refund mechanics remain unclear, keep the funds until the answers are documented and independently reviewed.
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