Should You Pay an EOI for a Pre-Launch Plot? What Bangalore Buyers Need to Know
An EOI cheque is among the first things a plotted layout asks of a buyer, usually months ahead of any registration. Whether it is wise to pay depends on what the paper actually promises, and on the law that governs everything after it. This guide goes through both, then lists the questions and documents that protect a Bangalore buyer. Expect to meet the practice in the city's growth belts, from the north to the east.
Money Before a Plot Exists
Think of an EOI as a spot held in a queue. The buyer writes to the developer, pays a small deposit and gets considered when allotment happens. The deposit is a sliver of what the plot will eventually cost.
A booking is something different, and the EOI is not one. A plot number, a settled price and a sale agreement are typically missing. The developer remains free to revise the layout, resize the plots and set a launch price of its own choosing.
RERA's Position
Section 3 of the 2016 Act bars advertising, marketing, booking and selling of a plot, or of an apartment, until the project is registered. Only land of 500 sq m or less and schemes of eight units or fewer escape the rule.
- Section 13 caps what a promoter may collect before a registered sale agreement at a tenth of the price.
- Section 4 sends 70% of buyers' payments to a separate project account for land and construction.
- Both protections start only when a RERA number exists.
So an EOI rests on trust plus whatever paper the company hands over. The registered plan, the filed completion date and the designated account all come later.
Trade-offs of Going First
Choice and price are what draw people in. First pick of corner plots and facings is a real advantage, a launch rate below later quotes is sometimes offered, and a calm stretch to examine the plan is a third gain.
The costs are real as well. Dates slip, plot counts and sizes change on sanction, and the final price is unknown until launch. Plots earn no income, and the amenities around a new layout can take years, which makes them a poor fit for money needed within two or three years.
Whatever is promised, such as a queue number or a price per sq ft, must be set down in writing, on the EOI form or by email. Spoken assurances are not enough.
Where These Layouts Are Found
Big parcels now lie mostly at the city edge. Many layouts are strung along the unfinished Satellite Town Ring Road or the proposed Peripheral Ring Road. Their appeal rests on infrastructure that is still being built.
Near the airport, Devanahalli hosts several plotted schemes, among them Assetz Codename Palmscape on IVC Road, which has opened an EOI. East of the city, the Chikka Tirupathi area follows the same pattern. Test the commute at peak hour before paying anything.
What the Receipt Must Say
With only an EOI form in hand, the wording carries the whole deal. Insist that it covers every item below, because the wording carries the whole deal.
| Item | What to look for |
|---|---|
| Amount and mode | Deposited immediately, or kept uncashed until launch |
| Refund | Full refund stated, with a number of days |
| Withdrawal | Any interest or deduction on exit |
| Priority | Queue number and the allotment method |
| Price promise | Rate or discount for EOI holders, per sq ft |
| Timeline | The month RERA registration and launch are due |
A held cheque is safest because your money stays put. Where it is deposited, the receipt must identify the company and the account used. Turn down cash and transfers to personal accounts.
Land Documents for a Lawyer
A plot's papers decide if it can be registered, funded by a loan and built upon. Before an EOI becomes a booking, the lawyer should read the parcel's title deeds across at least 30 years alongside an encumbrance certificate. The conversion order for the farmland and the sanctioned layout plan for the area complete the core set.
Authorities free sites in stages, so a release order covering the plots on offer is needed too. If the landowner keeps a share, ask for the joint development agreement, and check that the RERA registration states the number of plots, the land area and the completion date.
Look at the plan itself for road widths, parks, civic sites and any drain, lake buffer or high-tension line near your plot. A neighbour like that deserves scrutiny, whatever the discount.
Turning the EOI Into a Booking
With a RERA number issued, booking happens when you accept a plot at a price, and careful reading matters most now. The allotment letter must give the plot number, size, rate, extra charges and the schedule of instalments.
The sale agreement comes next, signed before your payments exceed 10%. Above Rs. 45 Lakhs, a plot attracts stamp duty of 5% with cess and surcharge, about 5.6% in total, plus 2% for registration. Ask your bank early whether it has approved the layout, since lenders often finance less of a plot than of a home.
Should the price at launch or the plots released disappoint, withdraw and claim the refund the EOI terms promise. The stage is also a fair moment to compare other layouts before committing further.
