In most cases, you only need to pay 10% of the total property cost as a booking amount before you sign the official papers. This is a special rule made by the government to protect people like you and me from giving too much money too soon.
The simple rules of booking
I have been around the real estate block for over 50 years now, and I have seen it all. Back in the day, builders could ask for whatever they wanted, but things are much safer now. Here is what you need to know about the money you pay first:
- The law says a builder cannot take more than 10% of the flat’s price as an advance. This is part of the Real Estate Regulatory Authority (RERA) rules that keep everything fair.
- If a flat costs 1 Crore, the most they can ask for at the very start is 10 Lakhs.
- Sometimes, builders ask for a small “token amount” first, like 2 Lakhs or 5 Lakhs, just to show you are serious. This is part of that 10% limit.
- You should always get a receipt for every rupee you pay. I once saw a young man lose his savings because he didn’t ask for a simple piece of paper. Don’t let that be you.
- The rest of the money is usually paid in small steps as the building gets taller. This is called a construction-linked plan.
Why this matters for your pocket
When I talk to families looking at projects like Godrej Jardinia in Sector 146, I tell them to be very careful with their budget. This project is quite fancy, with prices starting around 2.35 Crore or even more.
- For a home that costs 2.5 Crore, your 10% booking amount would be 25 Lakhs.
- You must make sure you have this money ready in your bank account before you say yes.
- Also, remember there are extra costs like stamp duty and registration fees that come later. These are not part of the booking amount.
- If the builder asks for 20% or 30% before signing the Agreement for Sale, they are breaking the rules. You should politely say no.
Steps to stay safe
- Check the RERA registration number of the project on the government website first.
- Read the “fine print” in the booking form. Sometimes they hide extra charges there.
- Ask if the booking amount is refundable if you change your mind. Usually, they keep a small bit and give the rest back, but you must know the exact amount.
- Never pay in cash. Always use a cheque or an online bank transfer so there is a digital trail.
Buying a home is a big dream. I still remember the first house I helped a family buy in 1975. The joy on their faces is why I still do this. Just keep your eyes open and follow the rules.
