Buying a ready-to-move property is one of the most exciting decisions in life. You finally get the keys to a home you can step into right away. But behind the excitement lies a big financial commitment. Many buyers face stress and confusion because they do not fully understand the payment terms and hidden charges that come with such properties.
In this blog, we’ll break down everything in simple words so that even an 8th-grade student can understand how payment works, what charges to look out for, and how to stay protected from unpleasant surprises.
Why Payment Terms Matter
A ready-to-move property is not just about the basic sale price you see in ads. The final amount you pay often includes many other charges. If these charges are not disclosed clearly, disputes between buyers and developers can arise. That is why complete payment term disclosure is a must. It gives buyers a clear idea of the total cost before signing any agreement.
Transparency protects you as a buyer. It ensures that you know every cost involved and are not trapped by last-minute demands.
Understanding the Total Property Cost Breakup
When you buy a ready-to-move property, the total price is a mix of different elements. Here’s what you should expect in the cost breakup:
- Basic Sale Price (BSP): The main cost of the property, usually based on the per square foot rate.
- External Development Charges (EDC) and Infrastructure Development Charges (IDC): Fees collected by the builder on behalf of the government to develop external amenities and infrastructure.
- Taxes: Goods and Services Tax (GST) on services (if applicable), plus stamp duty and registration charges that you must pay during registration.
- Preference Location Charges (PLC): Extra cost for special features like park-facing views, corner plots, or higher floors.
Pro Tip: Always ask your builder for a detailed cost sheet with all charges listed. This protects you from hidden costs later.
Builder Payment Policy: The Possession-Linked Plan
Unlike under-construction projects where payments are spread across years, ready-to-move properties usually follow a possession-linked plan. This means most of your money is paid when you take possession. Here’s the typical structure:
- Booking Amount: A small token fee to reserve your property.
- Agreement Signing: Around 10% to 20% of the total price is paid when you sign the Agreement to Sell. At this stage, review the payment terms carefully.
- On Possession or Handover: The largest portion (75% to 85%) is paid when you are given physical possession of the property.
- Final Payment: Any remaining balance, including registration charges and adjustments, is settled before the registry.
This system is safer for buyers because you pay the majority of the cost only after inspecting the property and confirming possession.
How to Avoid Hidden Charges
Hidden charges can spoil the joy of moving into your new home. Here’s how to avoid them:
- Request a written cost breakup: Never rely only on verbal promises.
- Check for taxes and government fees: Ask your builder to explain which taxes apply and when they are payable.
- Clarify maintenance charges: Sometimes, advance maintenance or club membership fees are added at the last moment.
- Confirm possession date: Ensure that the builder commits to a specific handover timeline in writing.
- Cross-check with experts: Consulting a property lawyer or real estate advisor can save you from costly mistakes.
Final Thoughts
Buying a ready-to-move property is exciting but requires financial wisdom. A clear payment terms disclosure ensures there are no surprises. Always demand transparency, check every line of the cost sheet, and insist on a possession-linked payment plan.
By doing so, you protect your money, build trust with the developer, and enjoy a smooth transition into your new home.
The post Ready-to-Move Property: How to Avoid Hidden Charges and Understand Payment Terms appeared first on Vastu Krupa Estate.