East Bengaluru buyer answers
Is it safe to pay an EOI for a pre-launch project in Bangalore before RERA registration?
Direct answer: It's risky, and a real estate investment consultant shouldn't push you into it. Section 3 of the RERA Act says a promoter can't advertise, market, book, sell or offer for sale any unit in a project that needs registration until it's registered.
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: This page is general guidance on RERA and pre-launch EOIs, not legal advice. Before you pay any EOI or booking amount, have your own property lawyer read the receipt or form and confirm whether the project is registered and what refund rights you actually have.
What an EOI usually is
Names vary: EOI, pre-launch booking, soft launch, priority pass. Usually you pay an amount to "reserve" the right to book at an early price once the project launches. It's often described as refundable.
What the law says
- Section 3(1) bars advertising, marketing, booking or selling in a project that needs registration before it's registered.
- Section 10(a) bars registered agents from facilitating the sale of any unit in an unregistered project.
- Section 13(1) says the promoter can't take more than 10% of the cost as an advance without a registered agreement for sale. That applies after registration.
- Section 59 sets penalties on promoters who breach section 3, and section 62 covers agents who breach sections 9 or 10.
So the law is clear about the promoter's side. What's less clear is your recovery if things go wrong. That's why it's a risk.
The real risks for you
| Risk | What can happen |
|---|---|
| Project changes | Fewer floors, different layout or a smaller unit than pitched |
| Delay in launch | Your money sits for months with no interest |
| Price not honoured | The "early" price changes at launch |
| No launch | Approvals fail and the refund is slow or partial |
| Weak paper trail | A receipt that doesn't say what you're entitled to |
| No portal record | You can't check approvals because nothing's registered yet |
Why pre-launch is pitched, and what a real estate investment consultant should say
The pitch is a lower price. Developers raise early money and test demand. For you, the trade is a possible discount against the risks above. A careful real estate investment consultant should spell that out, not just talk about the discount.
What to do instead
- Wait for RERA registration. Once the project is on rera.karnataka.gov.in, you can see approvals, plans, the proforma agreement and the declared completion date.
- Ask whether launch pricing will still be good. Often there are still early-phase offers after registration.
- If you do pay an EOI anyway, pay only to the promoter's company account, get a receipt that says it's fully refundable and when, and keep the amount small.
- Never pay a consultant personally. See red flags.
- Have your lawyer read whatever you sign.
How do you check whether a project is registered?
Search the project name and promoter on the Karnataka RERA portal. See how to check a project. If it isn't there, it isn't registered.
If you've already paid an EOI
- Keep every message, receipt and brochure.
- Ask the developer in writing for the refund terms.
- Once the project is registered, check that it matches what you were promised.
- If you want out and there's a problem, talk to a lawyer about consumer remedies.
What exactly does section 3 stop a developer from doing?
The wording in section 3(1) is broad on purpose. Without registering the project with the Authority, a promoter can't "advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner" any plot, apartment or building in a project in a planning area. Look at that list again. It covers marketing and inviting, not just selling. A WhatsApp flyer asking you to "register interest" for an unregistered tower, with a cheque attached, sits uncomfortably close to all of those verbs.
There are exemptions in section 3(2). Projects where the land doesn't exceed 500 square metres, or with no more than eight apartments across all phases, don't need registration, and neither do projects that got a completion certificate before the Act began. A large Sarjapur Road or Whitefield launch with hundreds of units is nowhere near those limits.
What happens to your money once a project is registered?
This is the part pre-launch buyers give up without realising it. Once a project is registered, the promoter's declaration under section 4(2)(l)(D) commits it to deposit 70% of the amounts collected from allottees in a separate scheduled-bank account. That money can only go to construction and land costs, and withdrawals have to be in proportion to completion, certified by an engineer, an architect and a chartered accountant.
Section 13(1) adds a second guard: the promoter can't take more than 10% of the cost as an advance or application fee without first signing a written agreement for sale with you and registering it.
Money paid before registration has neither protection. It sits wherever the developer puts it, under whatever terms the EOI form says, and the form is usually short.
Why wait for registration if the developer is reputable?
Reputation tells you how a developer has behaved before, not what this land, these approvals or this phase look like today. The registration filing is where you first see the promoter's own sworn declaration on title and encumbrances (section 4(2)(l)(A) and (B)) and the completion date they commit to (section 4(2)(l)(C)). Without that page, you're comparing a brochure to nothing.
A reasonable middle path: if you like a pre-launch, note the project, track the portal, and set aside the funds. Book once the registration number is live and the documents are uploaded. You may lose first pick of floors. You won't lose the legal footing that comes with registration.
Frequently asked questions
Is a refundable EOI safe?
Safer than a non-refundable one, but only as good as the developer's willingness to pay. Get the terms in writing.
Can a consultant take EOIs?
Section 10(a) bars a registered agent from facilitating sales in an unregistered project. Be cautious with any consultant collecting EOIs.
Will I miss out if I wait for RERA registration?
Maybe on the earliest price. You gain the ability to check what you're buying. Many buyers think that's worth it.
What if the developer is well known?
A big name reduces some risk, but not the legal position. Plans can still change before registration. See builder track record.
Where do I complain about a pre-launch scheme?
Karnataka RERA handles complaints on registered projects and agents. For unregistered-project issues, talk to a lawyer about consumer and other remedies.
What if the developer says registration is "applied for"?
An application isn't a registration. Section 3 turns on the project being registered, so wait for the registration number on rera.karnataka.gov.in before you pay.
References
- Real Estate (Regulation and Development) Act, 2016, official text hosted by Karnataka RERA (sections 3, 4 and 13). https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 15 Oct 2026.
- Karnataka Real Estate Regulatory Authority, official portal (project status, agent status, complaints). https://rera.karnataka.gov.in, accessed 14 Oct 2026.
- Real Estate (Regulation and Development) Act, 2016, full text PDF (PRS Legislative Research). https://prsindia.org/files/bills_acts/acts_parliament/2016/the-real-estate-%28regulation-and-development%29-act,-2016.pdf, accessed 15 Oct 2026.
- National Consumer Helpline, Department of Consumer Affairs. https://consumerhelpline.gov.in, accessed 15 Oct 2026.