This checklist for Indian investors buying into pre-launch projects has three steps. Understand the difference between an EOI and a booking. Book only after RERA registration. Then run the nine checks RERA does not cover: the developer’s delivery record, land dues, construction funding, title, payment plan, resale rights, launch price, all-in cost and growth catalyst.
Buying at launch is the most profitable entry point in Indian real estate, and the riskiest. You get the lowest price the project will ever see, but you also take on every risk the developer has not yet solved: approvals, funding, construction and delay.
The good news: RERA already takes care of many of the risks early buyers once faced. So insist on RERA before you commit, and then spend your energy on the risks RERA does not cover.
Step 1: What is an EOI in real estate, and how is it different from a booking?
Most pre-launch “offers” are Expressions of Interest (EOIs). An EOI reserves your place in the queue; a booking is a legal commitment to buy. The two carry very different risk.
| Expression of Interest (EOI) | Booking | |
|---|---|---|
| When it happens | Before RERA registration | Only after RERA registration |
| What you get | A place in the queue, sometimes a price or unit preference | An allotment letter for a specific unit, followed by a registered agreement for sale |
| Typical amount | A fixed token, often a few lakh | Up to 10% of the cost before the agreement |
| Refund | Should be fully refundable; check it is written down | Governed by the agreement and RERA cancellation terms |
| Legal protection | Very little; it is a contract with the developer, outside RERA | Full RERA protection |
| Investor rule | Pay only if refundable, in writing, to the company’s account | Book only once the RERA number is live for your exact tower |
An EOI is a reasonable way to secure launch pricing. Treat it as an option you can walk away from, not as a purchase.
Strictly, Section 3 of the RERA Act, 2016 expects a project to be registered before the developer collects money, token fees or advance payments for it. EOIs are still common in the market, so do your due diligence before you pay one.
Step 2: Why should you never book without RERA?
Under the RERA Act, 2016, any project on more than 500 sq m of land and with more than eight units must be registered before it is advertised, booked or sold. Registration is what switches on the protections below, so a booking in an unregistered project throws them all away.
The six RERA protections that matter most to an early buyer:
- 10% advance cap: the developer cannot take more than 10% of the cost before a registered agreement for sale (Section 13).
- 70% escrow: at least 70% of buyer money must go into a separate account and be used only for that project’s land and construction (Section 4).
- Fixed completion date: the developer must declare a completion timeline on the RERA portal, and the possession date in your agreement for sale is legally binding. If possession is late, you can claim interest for every month of delay, or exit with a full refund plus interest (Section 18).
- Carpet area disclosure: the developer must declare the carpet area of every unit, so you know exactly what usable space you are paying for.
- No changes without consent: the sanctioned plan cannot be materially altered, and the project cannot be handed to another developer, without the consent of two-thirds of buyers (Sections 14 and 15).
- Five-year defect liability: structural or workmanship defects reported within five years of possession must be fixed free of cost within 30 days (Section 14).
RERA also makes the developer publish approvals, layout plans and quarterly construction progress on the state portal (UP RERA for Noida, MahaRERA for Mumbai and Pune), and gives you a fast complaints route if things go wrong. Source: ICICI Bank on RERA
Step 3: 9 things to check in pre-launch projects that RERA does not cover
RERA protects your money and rights. It does not protect your returns. These nine checks fill that gap, ranked from most to least important. Each one tells you why it matters and exactly how to do it.
1. The developer’s delivery record
Why it matters: RERA gives you a refund if the project stalls, but collecting it from a struggling developer can take years. Delivery is the single biggest driver of your return.
How to check:
- ☐ On the state RERA portal, list the developer’s last five projects and compare each declared completion date with the actual OC date
- ☐ Visit one completed project and ask two or three residents about delays and build quality
- ☐ Search the developer’s name on the eCourts portal and the NCLT cause list for insolvency cases
2. Land paid for, with no authority dues
Why it matters: In Noida, Greater Noida and the Yamuna Expressway, unpaid land dues to the authority have blocked registries for thousands of buyers for years. RERA does not clear them.
How to check:
- ☐ Ask the developer for a no-dues certificate from the Noida, GNIDA or YEIDA authority, or the latest dues statement
- ☐ Check the land cost and lease details disclosed on the RERA portal
3. How construction is funded
Why it matters: A developer that relies only on buyer money slows down when sales slow down. Your possession date depends on their cash, not on their intent.
How to check:
- ☐ Ask which bank or NBFC has funded construction; a large bank’s involvement means its legal and technical teams have vetted the project
- ☐ Ask which banks offer home loans on the project. Three or more large lenders is a good sign
- ☐ Count how many other projects the developer is building at the same time
4. Title and approvals, verified by your own lawyer
Why it matters: RERA publishes what the developer uploads; it does not verify title. A defect found later can freeze your unit’s sale or registry.
How to check:
- ☐ Hire an independent property lawyer, not the developer’s panel, to review the 30-year title chain and encumbrance certificate
- ☐ Confirm each approval on the RERA portal is granted, not “applied for”
- ☐ Match the towers and floors in the brochure with the sanctioned plan
5. A possession-linked payment plan
Why it matters: The less you pay before the building is ready, the less you lose if it stalls, and the higher your return on the money actually invested. Construction-linked plans are front-loaded: instalments fall due with each foundation and floor slab, so you can end up paying a large share of the price before the structure is even complete.
How to check:
- ☐ Prefer a possession-linked plan such as 20:80 or 30:70, where you pay 20–30% upfront and the rest at possession
- ☐ If only a construction-linked plan is offered, work out how much is due before the structure is complete, and negotiate a more back-ended schedule
- ☐ Compare total cost: possession-linked plans can carry a slightly higher price
- ☐ Avoid down-payment plans, however large the discount
- ☐ For subvention plans, confirm in the tripartite agreement who pays the bank if the developer stops paying pre-EMIs
6. The right to resell before possession
Why it matters: For an appreciation investor, the exit is the whole point. Some agreements bar resale until most instalments are paid, or charge a transfer fee large enough to wipe out the gain.
How to check:
- ☐ Read the transfer or assignment clause in the draft agreement before paying 10%
- ☐ Get the transfer fee per sq ft and any lock-in period in writing
- ☐ Ask how many transfers the developer has processed in its earlier projects, and how long the NOC took
7. Whether the launch price is a real discount
Why it matters: Your gain is made on the day you buy. If the launch price is close to ready-to-move prices nearby, you are taking construction risk for little reward.
How to check:
- ☐ Compare the price per sq ft of carpet area with ready-to-move resale units in two or three comparable nearby projects
- ☐ Look up actual registered deal values in the sector on the state registration portal (IGRS in UP), not broker asking prices
- ☐ Check how prices moved from launch to possession in the developer’s previous project
8. A signed, all-in cost sheet
Why it matters: Taxes and add-ons raise the cost of an under-construction unit by roughly 15–20%. That is the hurdle your appreciation must clear before you earn anything.
How to check:
- ☐ Get every charge in writing and signed: base price, GST (5%), PLC, parking, club, power back-up, IFMS and maintenance
- ☐ Add stamp duty and registration; in UP that is 7% and 1% (Housing.com)
- ☐ Confirm the agreement has no escalation clause letting the developer add charges later
On a ₹1.5 crore unit in UP, this takes the outlay to about ₹1.75 crore.
9. A real growth catalyst, and limited competing supply
Why it matters: Appreciation needs a reason, and it must arrive while you still hold the property. At possession you will also be selling alongside every other launch buyer.
How to check:
- ☐ Name one catalyst, such as a metro line, expressway, airport or major employer, and confirm it is funded and under construction, not just announced
- ☐ Check its expected completion date against your planned exit
- ☐ Count new projects registered on the RERA portal in the same sector or corridor over the last two years
- ☐ Check whether prices have already jumped on the announcement; if they have, the upside may be priced in
What are the red flags? Walk away if you see these
- Pressure to book, or pay more than a refundable EOI, before RERA registration
- “Assured returns” or buy-back promises not written into the registered agreement
- Approvals described as “in process”
- A large discount for paying most of the price upfront
- Any part of the price asked in cash
The bottom line
Use the EOI to secure your price, book only after RERA registration, and let RERA guard your money. Your own checks then decide whether you make money: a developer who delivers, a location with a real catalyst, a launch price that is truly a discount, and a plan for your exit.
Frequently asked questions
What is an EOI in real estate, and how is it different from a booking?
An Expression of Interest (EOI) reserves your place in the queue, sometimes with a price or unit preference. It happens before RERA registration and sits outside RERA, so it carries very little legal protection. A booking happens only after RERA registration. It gives you an allotment letter for a specific unit, followed by a registered agreement for sale, with full RERA protection.
Is the EOI amount refundable?
It should be fully refundable, and you should check that this is written down. The typical amount is a fixed token, often a few lakh. Pay it only if it is refundable, in writing, and paid to the company’s account. An EOI is a contract with the developer, outside RERA, so it carries very little legal protection.
Can I book a pre-launch project before it has RERA registration?
Under the RERA Act, 2016, any project on more than 500 sq m of land and with more than eight units must be registered before it is advertised, booked or sold. A booking in an unregistered project throws away the RERA protections. Strictly, Section 3 of the Act expects a project to be registered before the developer collects money, token fees or advance payments for it, though EOIs are still common in the market. So do your due diligence first. Before registration, pay only an EOI, and only if it is refundable, in writing, and paid to the company’s account.
How much can a developer take before the agreement for sale?
Under Section 13 of the RERA Act, 2016, the developer cannot take more than 10% of the cost before a registered agreement for sale. At least 70% of buyer money must also go into a separate account and be used only for that project’s land and construction (Section 4).
What does RERA not protect a pre-launch buyer from?
RERA protects your money and rights. It does not protect your returns. It does not verify title, and it does not clear unpaid land dues to the authority. Nine checks stay with the buyer: the developer’s delivery record, land dues, construction funding, title and approvals, the payment plan, the right to resell before possession, the launch price, the all-in cost sheet, and a real growth catalyst with limited competing supply.
How much does an under-construction unit cost over the base price?
Taxes and add-ons raise the cost of an under-construction unit by roughly 15–20%. The charges include GST (5%), PLC, parking, club, power back-up, IFMS and maintenance, plus stamp duty and registration, which in UP are 7% and 1%. On a ₹1.5 crore unit in UP, this takes the outlay to about ₹1.75 crore.
Sources
Check with your advisor
This article is for general information only and is not legal, tax or financial advice. Its summary of RERA and other laws is simplified, and its figures, including tax rates, stamp duty, charges and returns, are illustrative and can change or vary by state. Before you sign an EOI, booking form, agreement for sale or loan document, or rely on any number here, check with a qualified property lawyer, chartered accountant or financial advisor.