The 10% Booking Limit: What RERA Section 13 Means Before You Pay a Bengaluru Builder
Section 13 of the RERA Act bars a promoter from taking more than ten percent of a flat's cost as an advance or application fee without first signing and registering a written agreement for sale. Here is how a Bengaluru buyer can use that rule at booking.
The site visit goes well. The sample flat in a new tower off Sarjapur Road is bright, the clubhouse drawings look generous, and the sales executive says the launch price holds only until Sunday. Then comes the request: a cheque today for a booking amount, the paperwork to follow in a few weeks. For a Bengaluru buyer, this can be the moment the largest purchase of a lifetime starts, before any binding document exists.
The Real Estate (Regulation and Development) Act, 2016 puts a limit on how much money can change hands at that stage. Section 13 caps the advance a promoter can accept before a written agreement for sale is signed and registered, and it lists what that agreement must contain. This guide reads the section from the Act and explains how to use it at the booking table.
The short answer. Under Section 13(1) of the RERA Act, a promoter shall not accept more than ten percent of the cost of the apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale with the buyer and registering it under the law in force. On a flat costing Rs 1.2 crore, that cap works out to Rs 12 lakh. Section 13(2) says the agreement must set out the specifications, payment dates, possession date and interest rates for default on both sides. The trade-off: the rule protects the money you pay before the agreement, but it also means you will be asked to sign a binding agreement early, so read it closely before you pay beyond the first ten percent.
What does RERA Section 13 say about booking amounts?
Section 13(1) of the Real Estate (Regulation and Development) Act, 2016 in its Gazette text says a promoter shall not accept a sum more than ten percent of the cost of the apartment, plot or building, as the case may be, 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 the agreement for sale under any law for the time being in force.
Three features of the wording matter. First, the limit applies to an advance payment or an application fee, so a payment labelled as either counts. Second, the base is the cost of the apartment, plot or building. Third, the condition for going beyond ten percent has two parts: a written agreement for sale, and registration of that agreement under the law in force.
The marginal heading of the section in the Act reads "No deposit or advance to be taken by promoter without first entering into agreement for sale". That is the plain purpose: money beyond a modest booking amount should follow a binding, registered document, not precede it.
How much can a Bengaluru builder take before the agreement?
The arithmetic is simple. Ten percent of the cost is the ceiling for an advance or application fee taken before a registered agreement for sale. The table below shows what that means at a few price points, along with the related rules a buyer should keep in view.
| Item | What the Act says | What it means for you |
|---|---|---|
| Flat costing Rs 80 lakh | Section 13(1): no more than 10 percent before a registered agreement | Advance capped at Rs 8 lakh |
| Flat costing Rs 1.2 crore | Section 13(1): same ten percent cap | Advance capped at Rs 12 lakh |
| Flat costing Rs 2 crore | Section 13(1): same ten percent cap | Advance capped at Rs 20 lakh |
| Agreement contents | Section 13(2): specifications, payment dates, possession date, default interest both ways | Read these before paying beyond ten percent |
| Penalty for other contraventions | Section 61: up to five percent of the estimated project cost | The Authority can penalise a promoter for breaching Section 13 |
The cap is a ceiling, not a target. A promoter may ask for less, and you are free to pay as little as possible until the agreement is ready and checked. Because the Act measures the cap against the cost of the apartment, plot or building, ask the promoter to show you, in writing, the cost figure it is using and what the booking receipt is for.
Ask for a full cost sheet at the same time. Seeing how the quoted price breaks down helps you understand the figure the ten percent is being measured against, and gives you a record to compare with the agreement for sale when it arrives.
What must the agreement for sale contain?
Section 13(2) says the agreement for sale shall be in the form prescribed and shall specify the particulars of development of the project, including the construction of the building and apartments, along with specifications and internal and external development works.
It must also specify the dates and the manner in which payments towards the cost are to be made by the allottees, and the date on which possession of the apartment, plot or building is to be handed over. Finally, it must specify the rates of interest payable by the promoter to the allottee, and by the allottee to the promoter, in case of default, along with other particulars that may be prescribed.
Each of these items gives you something to check before you pay further. The specifications are what you can later compare against what is built. The payment schedule tells you when each instalment falls due. The possession date is the reference point for delay remedies. Our explainer on builder buyer agreement clauses in Bengaluru walks through the terms to read line by line.
What if a builder asks for more before the agreement?
Start by saying no politely and in writing. Point to Section 13(1) and ask for the written agreement for sale to be shared and registered before you pay beyond ten percent of the cost. A promoter who intends to comply has no reason to resist.
If you have already paid more, keep every receipt and the sequence of dates. The Act gives you two routes to raise it. Section 31(1) allows any aggrieved person to file a complaint with the Authority or the adjudicating officer for any violation or contravention of the Act or the rules and regulations. Section 61 says that if any promoter contravenes any other provisions of the Act, other than Sections 3 and 4, it shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project, as determined by the Authority.
It also helps to check registration at the same time. Section 3(1) says no promoter shall advertise, market, book, sell or offer for sale any plot, apartment or building in a real estate project in a planning area without registering the project with the Authority. A request for a booking amount on a project that is not registered is a separate warning sign. Our guide on verifying a Karnataka RERA project registration shows where to look.
If you are comparing projects, ask each promoter the same question about its booking amount and when the agreement will be registered. For a large project such as the one in our review of Assetz 63 Degree East on Sarjapur Road, a clear written answer on both points is a reasonable expectation.
How does the agreement shape interest on both sides?
The agreement for sale is also where the cost of delay is fixed, for both parties. Section 13(2) requires it to state the interest rates payable by the promoter and by the allottee in case of default.
The definition of interest in Section 2(za) adds a symmetry rule. Its explanation says the rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case of default. It also fixes the periods: interest payable by the promoter runs from the date it received the amount until the amount and interest are refunded, and interest payable by the allottee runs from the date of default until payment.
Your side of the bargain is set out in Section 19(6) and (7). An allottee who has entered into an agreement for sale under Section 13 is responsible for making payments in the manner and within the time specified in the agreement, and is liable to pay interest at the prescribed rate for any delay. Section 19(8) says these obligations and the interest liability may be reduced when mutually agreed between the promoter and the allottee.
What should a Bengaluru buyer do before paying a booking amount?
A few minutes at the booking table can save months of argument later. Use this checklist:
- Confirm the project's RERA registration number before you pay anything.
- Ask for the cost figure in writing and work out ten percent of it.
- Keep any advance or application fee within that ten percent limit.
- Get a receipt that names the payment and the unit it is for.
- Ask when the written agreement for sale will be signed and registered.
- Read the specifications, payment dates, possession date and interest clauses first.
- Pay further instalments only after the agreement is executed and registered.
Section 13 does not stop you from moving quickly on a flat you like. It makes sure that once the money becomes serious, the promises do too.
What do Bengaluru buyers ask about the RERA booking amount limit?
How much booking amount can a builder take under RERA?
Section 13(1) of the RERA Act says a promoter shall not accept more than ten percent of the cost of the apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale with the buyer and registering it under the law in force.
What must a RERA agreement for sale include?
Section 13(2) says the agreement must be in the prescribed form and specify the project's development particulars and specifications, the dates and manner of payments, the possession date, and the rates of interest payable by the promoter and the allottee in case of default, plus other prescribed particulars.
What can I do if a builder took more than ten percent before the agreement?
Keep your receipts and dates. Section 31(1) allows any aggrieved person to complain to the Authority for a contravention of the Act, and Section 61 makes a promoter who breaches other provisions liable to a penalty of up to five percent of the estimated project cost.
Is the interest rate for buyer and builder defaults the same under RERA?
Yes. The explanation to Section 2(za) says the rate the promoter charges an allottee for default shall equal the rate the promoter must pay the allottee for its own default. Section 13(2) requires the agreement for sale to state these interest rates for both sides.
Last updated 2026-10-17. PropNewz Team.
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