Home Buyers · Costs🧮 Updated 10 Nov 2026 · ⏱ 12 min read
Hidden Charges When Buying a Flat Every Extra Cost, and Which Ones RERA Limits
The price in the ad is rarely the price you pay. Here is every charge that can sit between the "₹80 lakh" on the hoarding and the cheque you finally write, with what the law says about each and what you can negotiate.
Quick Answer
On top of the basic price, expect PLC, floor rise, covered parking, club, power backup, advance maintenance, IFMS, development charges, GST (5% or 1% if under construction) and stamp duty plus registration. With GST and stamp duty, the total is often 20% to 30% above the advertised price. RERA helps: open parking can't be sold, price must be on carpet area, and the agreed price can rise only for government levies.
At a Glance
Typical extra cost:20% to 30% (under construction)
GST, under construction:5% (1% affordable)
GST, ready with OC:Nil
Open / stilt parking:Common area, not for sale
Price basis under RERA:Carpet area, Sec 2(k)
Maintenance before possession:Builder pays, Sec 11(4)(g)
The Complete List of Extra Charges
Not every project has every charge, and some builders fold several into one "all-inclusive" price. Use this list to ask about each one by name. The tag on each tells you where you stand: Law means a rule applies, Negotiable means it is the builder's commercial choice, Question it means it often hides a problem.
Preferential location charges (PLC) Negotiable
Extra for a park-facing, corner, road-facing or pool-facing unit. Usually a rate per sq ft or a lump sum. No law fixes it. Ask what exactly makes your unit "preferential" and whether the view is protected on the approved layout.
Floor rise charges Negotiable
An amount per sq ft that goes up with each floor above a set level. Check whether it is charged on carpet area or a larger area.
Car parking Law
A covered garage or covered parking space can be sold. Open parking cannot: Section 2(n) of the RERA Act lists open parking areas as common areas, and Section 2(y) excludes them from "garage". If you are charged for parking, get the space number, its type and its size in the agreement.
Club membership Negotiable
A one-time fee for the clubhouse, gym or pool, sometimes with a yearly charge after possession. Ask whether the club is part of the project's common areas on the RERA page; if it is, check what you are paying for separately.
Power backup Negotiable
Charged per kVA of backup load, plus running costs later. Ask the rate, the load you get, and the monthly running cost.
Advance maintenance Question it
Usually 12 to 24 months collected at possession. Normal if it starts from possession. Question it if the builder wants maintenance for a period before possession is offered: Section 11(4)(g) makes the builder pay all outgoings until physical possession is transferred.
IFMS, corpus or sinking fund Question it
An interest-free maintenance security or corpus fund held for future repairs. It belongs to the residents. Ask for it in writing and check that it will be handed to the residents' association with interest or accounts.
External and internal development charges (EDC / IDC) Law
In Haryana these are fees the state levies on licensed colonies, and similar development or infrastructure charges exist in other states. They are usually passed to buyers. Ask if they are included in the price and whether the builder has paid them to the government.
Legal, documentation or "admin" fees Question it
A fee for drafting the agreement or handling paperwork. Ask what it covers. Stamp duty and registration are government charges; a builder fee on top of them is the builder's choice.
Utility connections Negotiable
Electricity meter, water and sewer connection charges. Often a fixed amount at possession. Ask whether they are actual government charges passed through.
Society formation and share money Negotiable
Small charges for forming the residents' association or society. Under Section 11(4)(e), forming the association is the builder's duty.
GST Law
Under construction: 5% for most flats and 1% for affordable housing, without input tax credit. Ready flats with an occupancy or completion certificate and resale flats: no GST. Paid on each instalment while the project is under construction.
Stamp duty and registration Law
Paid to the state when the agreement for sale or sale deed is registered. Rates differ by state, city and sometimes by the buyer's gender. See stamp duty by state.
TDS on purchase Law
Not an extra cost, but your job: if the price is ₹50 lakh or more, you deduct 1% and deposit it with the tax department. See TDS on property purchase.
Worked Example: The "₹80 Lakh" Flat
Here is how a flat advertised at ₹80 lakh can add up for an under-construction 2 BHK. The figures are illustrative; your project's cost sheet and your state's stamp duty will differ.
Item
Amount
Basic price (as advertised)
₹80,00,000
PLC (park-facing)
₹2,00,000
Floor rise
₹1,00,000
Covered car parking
₹3,00,000
Club membership
₹1,50,000
Power backup (3 kVA)
₹60,000
IFMS / corpus
₹1,00,000
Advance maintenance (12 months)
₹60,000
Legal / documentation fee
₹25,000
GST at 5% (on price items)
₹4,41,750
Stamp duty + registration (about 7%, varies by state)
₹6,29,650
Total
₹1,00,66,400
That is about 26% more than the advertised price. In this example GST is not applied to the IFMS and advance maintenance; how your builder treats them is worth asking. Stamp duty is worked on the agreement value, and many states charge less for women buyers.
How RERA Helps You With Charges
Carpet area pricing
Section 2(k) defines carpet area as the net usable floor area, excluding external walls, service shafts and exclusive balconies or terraces. Agreements under RERA state the area on this basis, so you can compare projects fairly. Convert any "super area" rate before comparing; see carpet area under RERA.
Open parking is common area
Section 2(n) includes open parking areas in common areas, which cannot be sold to one buyer.
No price rise at will
The model agreement in many states' RERA rules makes the total price escalation-free except for increases in government development charges and levies, which the builder must back with the notification.
Builder pays outgoings until possession
Section 11(4)(g): ground rent, municipal taxes, utility charges, maintenance and loan interest on the project are the builder's until physical possession is transferred.
No more than 10% before the agreement
Section 13 limits advances to 10% of the cost until a registered agreement for sale. See booking amount rules.
Everything in the agreement
Charges you are not told about before signing are hard to enforce later. Get the full cost sheet attached to the agreement for sale.
Your Cost Sheet Worksheet
Before you pay a booking amount, ask the builder to fill every line below in writing, or write "nil" against it. A builder that won't fill it in is telling you something.
☐ Carpet area (sq ft / sq m) and basic rate on carpet area: ______
☐ PLC: ______ ☐ Floor rise: ______
☐ Parking (covered / garage, number): ______
☐ Club: ______ ☐ Power backup (kVA × rate): ______
☐ IFMS / corpus: ______ ☐ Advance maintenance (months × rate): ______
☐ EDC / IDC or other development charges, included or extra: ______
☐ Legal / documentation / admin fee: ______
☐ Utility connections: ______ ☐ Society formation: ______
☐ GST rate and amount: ______
☐ Stamp duty + registration (your state rate): ______
☐ Total, all-inclusive: ______
What You Can Negotiate
Government charges (GST, stamp duty, registration, development charges) are fixed. Almost everything else is the builder's commercial decision, so it can move, especially near the end of a quarter or in a project that is selling slowly. PLC, floor rise, club and parking are the usual places to ask for a waiver or a discount. Asking for an all-inclusive price, then comparing it with a second project's all-inclusive price, gives you the strongest position.
The common ones are preferential location charges (PLC) for a corner, park-facing or high-floor unit, floor rise, covered car parking, club membership, power backup per kVA, advance maintenance for 12 to 24 months, an interest-free maintenance security (IFMS) or corpus fund, external and internal development charges in some states, legal or documentation fees, utility connection charges, GST on an under-construction flat, and stamp duty and registration. Builder extras alone often add 5% to 15%; with GST and stamp duty, an under-construction flat can cost 20% to 30% more than the advertised price.
Can a builder sell open or stilt parking?
No. Under Section 2(n) of the RERA Act, open parking areas are part of the common areas that belong to all residents, and Section 2(y) excludes open parking from the meaning of a garage. The Supreme Court held in Nahalchand Laloochand v Panchali Co-op Housing Society (2010) that stilt parking is a common area under Maharashtra law. A builder can sell a covered garage or covered parking space, so check exactly what you are paying for.
What is PLC in a flat price?
PLC means preferential location charges: an extra amount for a unit the builder says is better placed, such as park-facing, corner, road-facing or on a preferred floor. No law fixes PLC, so it is open to negotiation, but it must be in the price breakup and the agreement for sale.
How much GST is charged on a flat in 2026?
For an under-construction flat, GST is 5% for most homes and 1% for affordable housing (carpet area up to 60 sq m in metro cities or 90 sq m elsewhere, and price up to ₹45 lakh), without input tax credit. A ready-to-move flat that has an occupancy or completion certificate carries no GST, and neither does a resale flat. The September 2025 GST revision did not change these residential rates.
Is maintenance payable before I get possession?
It should not be. Section 11(4)(g) of the RERA Act makes the builder pay all outgoings until it transfers physical possession, and Section 11(4)(d) makes it responsible for essential services until the residents' association takes over. Advance maintenance collected at possession is normal; maintenance for months before possession is offered is worth questioning.
Can the builder increase the price after I sign the agreement?
Not at will. The model agreement for sale in many states' RERA rules says the total price is escalation-free, except for increases in development charges or levies imposed by the government or a competent authority, which the builder must show with the relevant notification. Any other increase should be refused and, if pressed, taken to the RERA Authority.
Should the price be on carpet area or super built-up area?
Agreements under RERA state the area and price on carpet area: the net usable floor area inside your walls, as defined in Section 2(k). A builder can still quote a rate on super built-up area in ads, so convert it to a carpet-area rate before you compare projects.
How much should I budget on top of the flat price?
A safe working figure is 20% to 30% of the basic price for an under-construction flat and 10% to 15% for a ready flat with no GST, covering stamp duty, registration, GST and the builder's extra charges, plus your own costs such as home-loan processing, furnishing and moving. Ask the builder for an all-inclusive cost sheet and use the worksheet on this page to check it.
Official Sources
Real Estate (Regulation and Development) Act 2016, Sections 2(k), 2(n), 2(y), 11(4)(d), 11(4)(e), 11(4)(g) and 13.
Model agreement for sale annexed to state RERA rules (total price and escalation clause); check the form in your state's rules.
Supreme Court: Nahalchand Laloochand Pvt Ltd v Panchali Co-operative Housing Society Ltd (2010).
GST: Notification 03/2019-Central Tax (Rate), effective 1 April 2019; residential rates unchanged by the GST revision of 22 September 2025.
Haryana Development and Regulation of Urban Areas Act 1975 (EDC/IDC on licensed colonies).
Change Log
Nov 10, 2026: Page published.
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