East Bengaluru buyer answers

New launch or resale flat in the same area: what changes for me?

By Gaurav Mongia, acre&key · Published 18 Oct 2026 · Updated 18 Oct 2026

Direct answer: A new launch is bought from a promoter, so the RERA Act's promoter duties, the 10% advance cap and construction GST come into play. A resale flat is bought from an owner, so title history, the OC, khata and the seller's paperwork carry more weight. Compare the risks as well as the price per square foot.

Disclosure: acre&key’s advice is free to buyers; we are an authorised sales partner for some projects and may be paid by the developer.

Verify with your lawyer and CA: This page is general guidance from the RERA Act and the GST rate notification, not legal or tax advice. Have your own property lawyer check title and the agreement, and a CA check GST and TDS, before you pay anything.

Two flats can sit a few hundred metres apart and still be very different purchases. One comes from a builder with a RERA registration and a payment schedule. The other comes from a family that has lived in it for years. The law treats those two sellers differently, and so should your checklist.

This page sets the two side by side. It doesn't say one is better. That depends on your timeline, your budget and how much uncertainty you can carry.

Who am I buying from, and why does it matter?

In a new launch you're buying from a promoter. The RERA Act puts a long list of duties on the promoter: registration before selling, disclosures on the K-RERA website, the 70% project-account rule, adherence to sanctioned plans, and handing over title and common areas.

In a resale you're usually buying from an individual owner. Most of those promoter duties don't apply to the seller in front of you. Your protection comes mainly from the title documents, the sale deed and your lawyer's checks.

There's one useful overlap. The Act's definition of "allottee" in section 2(d) "includes the person who subsequently acquires the said allotment through sale, transfer or otherwise". So if you buy a resale flat in a project registered under RERA, you may step into some of the original buyer's position against the promoter. How far that goes in your case, and whether the project was ever registered, is a question for your lawyer.

How does RERA registration differ between the two?

Section 3(1) says no promoter may "advertise, market, book, sell or offer for sale" any apartment in a real estate project in a planning area without registering it with the Authority. The first proviso pulled in projects that were ongoing when the Act commenced and had no completion certificate.

For a new launch, that means:

• the project must have a RERA number before you're asked to book;
• the promoter must update the project page every quarter with bookings, approvals and construction status under section 11(1);
• you can check it yourself on rera.karnataka.gov.in (here's how to check a project on the Karnataka RERA website).

For a resale flat, RERA registration depends on the project, not on the seller. An older building completed before the Act, with its completion certificate in hand, may never have been registered. That's not a red flag on its own. It just means the RERA portal won't hold its records, so you rely on the approvals, the OC and the title chain instead.

What do I pay upfront in each case?

With a promoter, section 13(1) caps what can be taken before a written agreement. A promoter "shall not accept a sum more than ten per cent. of the cost of the apartment" as an advance or application fee without first entering into a written agreement for sale and registering it.

A resale deal has no equivalent statutory cap on the token. The amount and the refund terms are whatever you and the seller agree in writing, so get them on paper and have your lawyer read the receipt or agreement before you transfer money. Our list of documents to verify before paying a token advance applies directly here.

How does GST differ?

This is one of the clearest differences, and it's tied to the completion certificate, not to the word "resale".

The GST rate notification for construction services taxes residential apartments built for sale "except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier".

In practice:

• Under-construction new launch: construction GST applies to what you pay the builder. Our page on GST on a new flat explains the 1% and 5% rates and the affordable-housing test.
• Ready flat from the builder: it depends on payment dates. If any part was paid before the completion certificate or first occupation, ask your CA how GST applies.
• Resale from an owner after the building is complete: this exception is the starting point, but confirm with your CA before you rely on it.

Stamp duty and registration apply to both. See hidden costs beyond the base price and how to register a flat on Kaveri 2.0.

The conditions for the 1% rate are set out in what counts as affordable housing for 1% GST.

What about TDS?

TDS on property purchase applies whether you buy from a builder or from an owner, once the deal crosses the threshold. The rules are in how TDS on a flat purchase works. If the seller is an NRI, the rate and process change, so read TDS when an NRI sells a flat and talk to your CA before you sign.

Who fixes defects after I move in?

For a new flat, section 14(3) says that if a structural defect, or a defect in workmanship, quality or provision of services, is brought to the promoter's notice "within a period of five years by the allottee from the date of handing over possession", the promoter must fix it "without further charge, within thirty days". Our page on defects after possession covers how to raise one.

For a resale flat, two things matter:

1. When was possession first handed over? The five years run from that date, not from your purchase.
2. Were you an "allottee" under section 2(d)? As above, ask your lawyer whether the right reaches you as a later buyer.

If the building is older than five years from first possession, plan on repairs being your cost or the association's. A pre-purchase inspection by an engineer is worth the fee.

Which documents matter more in each case?

The resale column has fewer moving parts on construction risk and more on paperwork. A property lawyer's title check matters in both; see why a consultant doesn't replace your lawyer on title.

If you're financing a resale purchase, how a home loan for a resale flat works walks through the bank's side.

Is a new launch riskier than resale?

The risks are different, not bigger or smaller by default.

A new launch carries delivery risk: the building may be late or change. The Act gives you tools. Section 18(1) lets an allottee claim a refund with interest, or interest for every month of delay, if the promoter fails to give possession as agreed. The quarterly updates let you watch progress (how to read a quarterly RERA update).

A resale flat carries title and condition risk: unclear ownership history, missing approvals, unpaid dues or wear. You can see what you're buying, but the protections are mostly contractual, so the checks before you pay do the heavy lifting.

Frequently asked questions

Does RERA apply when I buy a resale flat?

RERA governs promoters and real estate projects. The Act's definition of "allottee" includes a person who later acquires an allotment by sale or transfer, so some protections may reach a resale buyer in a registered project. Ask your lawyer how that applies to your flat.

Is GST charged on a resale flat?

The construction GST entry excludes cases where the entire consideration is received after the completion certificate or first occupation, whichever is earlier. A sale by an owner of a completed flat usually falls outside it, but confirm with your CA.

Can the seller of a resale flat take any amount as token?

Section 13(1)'s 10% cap applies to promoters, not to individual sellers. Agree the token and the refund terms in writing and have your lawyer check them first.

Who fixes defects in a five-year-old resale flat?

Section 14(3) runs five years from the date possession was first handed over. After that, repairs usually fall on the owner or the association. Get an engineer's inspection before you buy.

Do I pay TDS on both new and resale flats?

Yes, once the deal crosses the threshold. If the seller is an NRI, different TDS rules apply. Check with your CA.

References

1. Real Estate (Regulation and Development) Act, 2016, sections 2(d), 3(1), 11(1), 13(1), 14(3) and 18(1) (K-RERA copy): https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 17 Oct 2026
2. Notification No. 03/2019-Central Tax (Rate), 29 March 2019, Table items (i) and (ia) (GST Council copy): https://gstcouncil.gov.in/sites/default/files/2024-05/download_2024-05-17t161406.556.pdf, accessed 17 Oct 2026
3. GST Council, GST rates on services compilation, Heading 9954 construction services: https://gstcouncil.gov.in/sites/default/files/2024-02/gstservicerates.pdf, accessed 17 Oct 2026
4. Karnataka RERA portal, project search: https://rera.karnataka.gov.in/, accessed 17 Oct 2026

This page explains public rules and processes. It isn't legal or tax advice. acre&key gives buyers advice for free. We are an authorised sales partner for some projects and may be paid by the developer.