EOI in real estate: refund terms and the price at reveal

7.2.1 What is an EOI in real estate?

An EOI, or expression of interest, is a payment that shows a builder you want to buy in a project before it launches. In Bangalore, a builder can collect EOIs during the pre-launch stage, before the project is registered on K-RERA. You pay by cheque or transfer, in an amount that the builder sets. In return, you get a place in the queue for when the project opens. An EOI is not a booking, and it does not give you a specific flat. Section 3(1) of the RERA Act, 2016 bars a builder from booking or selling a flat in a planning area before registration. Section 2(d) defines an allottee as a person to whom a flat is allotted, sold or transferred. So an EOI holder is not yet an allottee. What protects you at this stage is the written EOI terms, not the RERA Act. So read the terms before you pay.

Point	EOI	Booking
When	Before K-RERA registration	After K-RERA registration
What you get	A place in the queue	A specific flat
What protects you	The written EOI terms	The RERA Act and the agreement for sale
Advance limit	Set by the EOI terms	At most 10 percent before the agreement (Section 13(1))

7.2.2 Why does an EOI come before RERA registration?

An EOI comes before RERA registration by design, so a missing RERA number at the EOI stage is normal, not a warning in itself. A builder gathers EOIs to gauge demand before it fixes the plan, the phases and the price. It then registers the project on K-RERA, and only after that can it book or sell flats. So do not refuse an EOI only because the project has no RERA number yet. Judge it on what can go wrong at this stage. One risk is that your money is not returned in full, or on time. Another is that the price at the launch is higher than you expected, with no written cap. A third risk is that the builder treats your EOI as a booking before registration, which Section 3(1) bars. Check the builder’s past projects on K-RERA, because the same company will run this one. The builder delivery record chapter explains how.

What to judge at the EOI stage	Why
Refund terms in writing	Your only protection before registration
How the price is set at reveal	Decides whether the EOI is worth it
No booking before registration	Section 3(1) bars it
The builder’s past projects	The same company runs this one

7.2.3 What refund terms should an EOI have?

An EOI should state in writing that you can get your money back, when, and how much. Ask the builder for the EOI form or letter before you pay, and read it fully. Look for five things. First, is the refund full, or is there a deduction? Second, what triggers it: your choice at any time, a missed launch date, or a price you do not accept? Third, how many days does the refund take? Fourth, is there a date after which the EOI lapses, and what happens to your money then? Fifth, who signs the letter, and is it the company that will register the project? If the builder will not give these terms in writing, treat that as a reason not to pay. Pay by cheque or bank transfer to the builder’s company account, never in cash, and keep the receipt. Section 12 of the RERA Act protects buyers against false statements in advertisements once a project is registered.

1. Ask for the EOI terms in writing before you pay.
2. Check that the refund is full, or note the deduction.
3. Note what triggers a refund, and the number of days.
4. Note the lapse date, and what happens to your money then.
5. Pay by cheque or transfer to the company, and keep the receipt.

7.2.4 How is the price set at reveal?

The builder sets the price at the reveal or the launch, and the EOI terms decide what, if anything, you are promised before that. Some EOI terms state a price per square foot or a discount on the launch price. Others give a range, and some say the price is “to be decided”. If the terms state a price or a discount, that is a written promise you can hold the builder to. If the price is “to be decided”, you are buying a place in the queue, not a price. That can still be useful, if the refund is full and quick. Before you convert an EOI into a booking, compare three numbers. The first is any price in your EOI terms. The second is the launch price on the cost sheet for your flat. The third is the price of similar launched flats nearby. The launch price chapter explains how prices move between phases. If the launch price is higher than you accept, take the refund.

What the EOI terms say about price	What it means for you
A fixed price per square foot	A written promise you can hold the builder to
A discount on the launch price	Check the launch price, then apply the discount
A range	The final price can be at the top of the range
“To be decided”	A place in the queue, not a price

7.2.5 What should you check before converting an EOI into a booking?

Before you convert an EOI into a booking, check that the project is registered on K-RERA and that the booking follows the RERA rules. Look up the registration number on the K-RERA portal. Check that your tower and flat are in the registered phase. Ask for the cost sheet of your exact flat, and compare it with any price in your EOI terms. Ask whether the EOI amount counts towards the booking amount, and get the answer in writing. Section 13(1) of the RERA Act caps the advance at 10 percent of the flat’s cost before a registered agreement for sale. Your EOI amount and booking amount together count towards that cap. If the builder asks you to convert before registration, refuse, because Section 3(1) bars it. If you do not want the flat at the launch price, ask for your refund in writing, as the EOI terms allow. The allotment letter chapter explains the next step.

Check before converting	Where
K-RERA registration number and phase	K-RERA portal
Price of your exact flat	Builder’s cost sheet
EOI amount counted towards booking	Written confirmation from the builder
Total advance within 10 percent	Section 13(1) of the RERA Act

Sachi tracks K-RERA registrations for Bangalore projects. To know when an EOI project registers and what it files, Ask Sachi.