Booking amount
The first substantial payment that reserves a unit for a buyer, often 5% to 10% of the price. RERA caps pre-agreement collection at 10%.
Also called: application money, earnest money
The booking amount confirms a buyer's intent and blocks a unit. It is usually paid with a signed application form and leads to an allotment letter.
Under Section 13 of the RERA Act, a promoter cannot accept more than 10% of the cost as an advance before signing and registering the agreement for sale. If the booking amount plus any earlier token reaches 10%, the next payment must wait for the agreement.
Example: on a ₹90,00,000 unit, a buyer pays ₹1,00,000 token and ₹4,00,000 at booking. Total received ₹5,00,000, or 5.6%. The developer can collect up to another ₹4,00,000 before the agreement is registered.
Related terms
Put your next launch on LeadOne AI.
hello@leadoneai.com
Android: coming soon to Google Play