Booking Amount
The initial payment made by a buyer to reserve a property unit, typically 5–10% of total sale value in new projects and 10–20% in resale transactions. Adjusted against the final sale price at deed execution.
What is Booking Amount?
Booking amount is the initial payment a buyer makes to a developer or seller to reserve a specific property unit and demonstrate serious purchase intent. It is the common informal term for what RERA formally calls Earnest Money Deposit (EMD). In new apartment purchases, booking amount is typically 5–10% of the total sale consideration; in resale transactions it is often 10–20%. The amount is adjusted against the total sale price at the time of sale deed execution.
RERA Cap on Booking Amount
Under RERA Section 13, a developer cannot collect more than 10% of the apartment cost as an advance or booking amount before executing a registered sale agreement. This is a key buyer protection introduced by RERA — before 2016, builders sometimes collected 30–40% upfront without executing any formal agreement.
Developers who demand more than 10% before signing the registered sale agreement are in violation of RERA and can be reported to the state RERA authority.
What Booking Amount Covers
- Reservation of the specific unit (floor, flat number, tower)
- Unit is taken off the market for other buyers
- Developer issues an allotment letter after receiving booking amount
- Amount is fully adjusted against total sale price at final payment
Booking Amount vs Token Amount
These terms are often used interchangeably but have a practical distinction. A token amount is a small goodwill payment (typically ₹10,000–₹1 lakh) made to informally hold a unit while due diligence is conducted — it is not always part of a formal agreement. A booking amount is a larger, formal payment typically made alongside or just before the allotment letter and constitutes the EMD under RERA.
Refund Rules
Under RERA:
- Buyer withdraws without valid reason: Developer may forfeit the booking amount as stipulated in the sale agreement (typically capped at actual losses, ~1–2% of property value)
- Developer delays or defaults: Buyer is entitled to full refund of all amounts paid, including booking amount, with interest at repo rate + 2%
- Project force-cancelled by authority: Full refund with interest within 45 days
How to Protect Your Booking Amount
- Verify RERA registration before paying anything — check your state RERA portal
- Pay only by cheque or bank transfer (never cash) — get an official receipt on company letterhead
- Do not pay more than 10% before the registered sale agreement is signed and stamped
- Confirm the RERA number is stated on the receipt and allotment letter
- Check Brickplot scores for project compliance flags before booking
Related Terms
- EMD / Earnest Money Deposit — the formal RERA term for booking amount
- Allotment Letter — issued by developer after receiving booking amount
- Sale Agreement — must be executed before payments exceed 10% of property cost
Related terms
Brickplot verifies booking amount disclosures on every reviewed project as part of the independent 11-axis score. No builder commissions. No editorial override.