Home Buyers · Before You Pay💳 Updated 10 Nov 2026 · ⏱ 9 min read
Booking Amount Rules Under RERA Why 10% Is the Line You Shouldn't Cross
The booking amount is the first real money you give a builder, and it is where many buyers lose their bargaining power. Here is what the law allows, what to get in writing, and what happens to that money if plans change.
Quick Answer
Under Section 13 of the RERA Act, a builder cannot take more than 10% of the flat's cost as a booking amount, advance or application fee until a written agreement for sale is signed and registered. Pay by bank, get a receipt with the RERA number, and don't pay the next instalment until the agreement is registered.
At a Glance
Law:RERA Act 2016, Section 13(1)
Limit before agreement:10% of the unit cost
Agreement must be:Written and registered
GST:Charged on top, shown separately
If you cancel:Deduction as per state limits
If the builder fails:Full refund + interest (Sec 18)
What Exactly Does Section 13 Say?
Section 13(1) of the Real Estate (Regulation and Development) Act, 2016 says a promoter shall not accept a sum of more than ten per cent of the cost of the apartment, plot or building as an advance payment or an application fee from a person without first entering into a written agreement for sale with that person and registering it under the law in force. Confirmed
Three things follow from that sentence:
1. It covers every name for early money. Booking amount, token, application money, EOI amount or "advance" all count towards the 10%. 2. Signing is not enough. The agreement must also be registered with the sub-registrar, which means stamp duty and registration fees are paid on it. 3. It protects you, not the builder. Once you have paid 10%, you can refuse further demands until the agreement is registered. UP RERA issued an advisory to buyers and builders on exactly this in January 2023. Reported
How Much Is 10% in Real Money?
The 10% is worked out on the cost of the unit, not on the loan amount or your budget. Here is what it looks like for common flat prices. GST is shown separately because it is a tax on top of the cost for an under-construction flat: 5% for most flats and 1% for affordable housing (carpet area up to 60 sq m in metros or 90 sq m elsewhere, and price up to ₹45 lakh). Ready flats with an occupancy certificate carry no GST.
Flat cost
Max booking (10%)
GST on it (5%)
₹40 lakh
₹4,00,000
₹4,000 (1% if affordable)
₹60 lakh
₹6,00,000
₹30,000
₹80 lakh
₹8,00,000
₹40,000
₹1.2 crore
₹12,00,000
₹60,000
₹2 crore
₹20,00,000
₹1,00,000
The ₹40 lakh row assumes the flat qualifies as affordable housing (1% GST). Many builders ask for less than 10% at booking, such as a fixed ₹2 lakh or 5%. That is allowed; 10% is the ceiling, not a requirement.
What Happens When a Builder Takes More Than 10%?
Taking more than 10% before a registered agreement is a breach of Section 13, and RERA Authorities have acted on it:
Goa RERA Reported
Imposed a ₹5 lakh penalty on a builder that took more than 10% from buyers before registering the agreement for sale.
Tamil Nadu RERA (2025) Reported
Imposed a ₹50,000 penalty where sale and construction agreements dated July 2025 had been signed but not registered while the builder collected more than 10%.
MahaRERA (Dec 2025) Reported
In Vaibhav Singh v Accord Builders, held that a builder that took more than 10% without a registered agreement and later resold the flat could not forfeit the buyer's money, and ordered a refund of about ₹42.45 lakh.
Rajasthan RERA Reported
Directed a builder to execute and register the agreement for sale before demanding anything beyond the amount already deposited.
These orders are reported by LiveLaw, Herald Goa, SCC Online and others. They show the pattern; your own case will turn on its facts, so keep every receipt and demand letter.
Booking Form, Allotment Letter, Agreement: What's the Difference?
Document
What it does
Registered?
Receipt
Proof of payment only. Should show RERA number, unit and amount.
No
Booking / application form
Your request for a unit, usually with the builder's terms and a cancellation clause.
No
Allotment letter
Builder confirms the unit allotted to you. MahaRERA has a model format.
Transfers ownership to you, usually after the occupancy certificate.
Yes
Read the cancellation clause in the booking form before you sign it. A clause that lets the builder keep "the entire booking amount" is common, but Authorities have repeatedly cut such forfeitures down. If the builder is the one cancelling, see can a builder cancel my booking. Our guide to refunds on cancellation explains the state limits in detail.
If You Cancel After Paying the Booking Amount
You change your mind
The builder may deduct only what the booking terms and state rules allow. MahaRERA has capped pre-agreement deductions at about 2% of the cost. HRERA Gurugram's 2018 regulations cap forfeiture at 10% of the consideration. Elsewhere, the Supreme Court has treated 10% of the basic sale price as a reasonable earnest-money forfeiture.
The builder is at fault
If the builder misses the possession date, changes the plan without consent, or its registration is revoked, Section 18 lets you withdraw and get everything back with interest at your state's prescribed rate, with no deduction.
Basic price on carpet area, parking, PLC, club, maintenance, GST, stamp duty. Our hidden charges guide lists every item to ask about.
3
Confirm the amount is 10% or less
Of the unit cost, with GST shown separately.
4
Read the cancellation clause
How much is kept if you cancel, and in what time it is refunded.
5
Pay by bank to the right account
Cheque, DD or transfer. Never cash.
6
Get a proper receipt
Project RERA number, unit number, carpet area, amount, GST, date.
7
Get the payment plan
Construction-linked plans tie each payment to a stage of work.
8
Fix a date for the agreement
Ask in writing when the agreement for sale will be registered.
9
Don't pay more until it's registered
Section 13 is on your side here.
What to Say When the Builder Insists
"Pay 25% now and we'll do the agreement next month."
You can reply: "I'm happy to pay up to 10% now. Under Section 13 of RERA, I'll pay the rest once the agreement for sale is registered. Please share the draft and the registration date."
"The offer price is only valid if you pay today."
Ask for the offer in writing with the RERA number and the price breakup. A genuine offer survives a day's checking.
How much booking amount can a builder take under RERA?
Not more than 10% of the cost of the flat, plot or building as an advance or application fee, until the builder has signed a written agreement for sale with you and got it registered. This is Section 13(1) of the RERA Act, 2016. After the agreement is registered, further payments follow the payment plan in that agreement.
The builder is asking for 20% or 30% at booking. Is that allowed?
Not before a registered agreement for sale. Several RERA Authorities have penalised builders for this: Goa RERA imposed a ₹5 lakh penalty and Tamil Nadu RERA a ₹50,000 penalty for collecting more than 10% before registration, and MahaRERA has refused to let builders forfeit money collected this way. Ask for the agreement to be registered before you pay the next instalment.
Is the booking amount refundable if I cancel?
Partly, in most cases. The builder can keep only what your booking form or agreement allows and your state permits. MahaRERA has limited deductions at the pre-agreement stage to about 2% of the flat cost, and HRERA Gurugram caps forfeiture at 10% of the consideration. If the builder is at fault, you get the whole amount back with interest under Section 18.
Does "10%" include GST?
Section 13 talks of 10% of the cost of the apartment, plot or building. GST is a tax on that cost and is collected on top of each payment for an under-construction flat. Ask the builder to show the booking amount and the GST separately on the receipt so you can see that the cost part stays within 10%.
Is signing the agreement enough, or must it be registered?
It must be registered. Section 13(1) says the promoter must enter into a written agreement for sale and register it before accepting more than 10%. A signed but unregistered agreement does not meet the rule, and Tamil Nadu RERA penalised a builder in 2025 on exactly this point.
Should I pay the booking amount in cash?
No. Pay by cheque, demand draft or bank transfer to the account named on the project's RERA registration or in the builder's demand letter, and keep the receipt. Cash payments are hard to prove, and the Income-tax law does not allow a seller to accept an advance of ₹20,000 or more in cash for the sale of a property.
What should I get in writing when I pay the booking amount?
A receipt with the project's RERA registration number, unit number, carpet area, total price, the amount paid and the GST; the booking form or allotment letter with the cancellation clause; the payment plan; and a date by which the builder will register the agreement for sale.
Where do I complain if the builder takes more than 10%?
File a complaint with your state RERA Authority under Section 31. You can ask it to direct the builder to register the agreement before taking more money, or to refund amounts if you want to withdraw. The Authority can also penalise the builder.
Official Sources
Real Estate (Regulation and Development) Act 2016, Sections 13, 18, 31 and 61.
UP RERA advisory on registered agreements before payments above 10% (January 2023), as reported.
MahaRERA, Vaibhav Singh v Accord Builders, Complaint CC006000000490389 (18 Dec 2025), as reported by LiveLaw; MahaRERA Order 35/2022 on pre-agreement deductions.
Goa RERA penalty on Prescon Homes Pvt Ltd (Herald Goa); Tamil Nadu RERA penalty (2025), as reported; Rajasthan RERA order on Section 13 (SCC Online).
Haryana Real Estate Regulatory Authority, Gurugram (Forfeiture of Earnest Money by the Builder) Regulations 2018.
GST: Notification 03/2019-Central Tax (Rate), rates for residential construction (unchanged by the September 2025 GST revision).
Change Log
Nov 10, 2026: Page published.
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