East Bengaluru buyer answers
Can a builder raise the price after booking?
Direct answer: Not freely, once you have a registered agreement for sale. Karnataka RERA's proforma agreement calls the total price escalation-free, except for new or higher charges imposed by a competent authority, tax changes and a carpet-area recalculation after the occupancy certificate. Your own signed agreement decides, so read its price clauses before paying more than the booking amount.
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 explains the RERA Act and the proforma agreement published by Karnataka RERA. Your project's agreement may word these clauses differently. Have your own property lawyer read the price, tax and carpet-area clauses before you sign.
Verify with your CA: GST and other taxes on a flat change with law and with your payment dates. Ask a chartered accountant how any tax change applies to your instalments.
Price worries usually start with a phone call: the builder says costs have gone up and asks for a "revised" amount. Before you argue or pay, find out which document you signed, what its price clause says, and whether the demand comes with a government order behind it.
What does RERA say about the price in the agreement?
The RERA Act doesn't fix flat prices. It controls the paperwork around them.
- Section 13(1): the promoter can't take more than 10% of the cost of the apartment as an advance or application fee without first signing and registering a written agreement for sale with you.
- Section 13(2): that agreement must be in the form the government prescribes, and it must state the dates and manner of payment towards the cost, the possession date, and the interest rates either side pays on default.
- Section 19(6): once you have signed, you must pay in the manner and within the time the agreement sets, along with your share of registration charges, municipal taxes, utility and maintenance charges.
So the agreed cost and the payment plan are written terms on both sides. A builder can't add a new price line just by sending a letter, and you can't skip an instalment the agreement requires.
The Ministry of Housing's RERA FAQ (question 47) adds that the agreement for sale is binding on both parties, with some room for other provisions the two sides agree on. That room is why you need to read the extra clauses.
What does the Karnataka proforma agreement say about price?
Karnataka RERA publishes a Proforma Agreement of Sale on its Downloads page. Its note tells promoters to highlight every insertion, modification, deletion and added clause in a different colour when they submit the agreement with their registration application. The price clauses in that proforma read like this, in substance:
| Clause | What it says |
|---|---|
| 1.2 Total Price | Price is based on carpet area, with a breakup. It includes the booking amount and taxes such as GST. |
| 1.2 Taxes | If taxes change, the amount you owe goes up or down. A tax increase after the scheduled completion date (including any RERA extension) is not charged to you. |
| 1.3 Escalation | The total price is escalation-free, except for increases in development charges or other charges levied by a competent authority. |
| 1.3 Proof | Any such demand must come with the notification, order or rule behind it, and applies only to later payments. |
| 1.3 Late charges | New or higher development charges after the scheduled completion date (including extension) are not charged to you. |
The proforma doesn't let a builder ask for more because cement, steel or labour costs went up. Higher construction costs aren't on its list of exceptions.
Can the price change if my carpet area changes?
Yes, in both directions, under the proforma's carpet-area clause (clause 1.7). After construction is complete and the occupancy certificate is granted, the promoter confirms the final carpet area and the price is recalculated.
- If the carpet area reduces, the promoter refunds the excess within 60 days, with annual interest at the rate in the Rules, from the date you paid it.
- If it increases by not more than 3%, the promoter may ask for the extra at the next milestone of the payment plan.
- Either way, the adjustment is at the same per-square-foot rate as the agreed price.
That's why your agreement should state carpet area clearly. Our page on carpet area vs super built-up area explains what RERA counts.
What if my booking form says the price can change?
Booking forms and allotment letters often carry their own small print. The Karnataka proforma has a "Savings" clause (clause 31): any application letter, allotment letter or other document you signed before the registered agreement can't be read to limit your rights under the agreement or under the Act, Rules or regulations.
Check whether your agreement keeps that clause. If it does, an escalation line in an earlier booking form shouldn't override the registered agreement. Our guide to allotment letter vs agreement vs sale deed explains which document controls at each stage.
What should I check before signing?
- Ask for the draft agreement and compare its price clauses with the K-RERA proforma. Look for anything that lets the builder add "cost escalation", "increase in input costs" or a vague "other charges" line.
- Check that the total price has a full breakup, and that every extra line on the cost sheet appears in the agreement. Our list of hidden costs beyond the base price helps here.
- Confirm the scheduled completion date, because tax and development-charge increases after it shouldn't be passed on under the proforma.
- Read the carpet-area clause, including the 3% limit and the refund terms.
- Have your lawyer review the whole agreement. Our sale agreement checklist lists the other clauses to read.
What can I do if the builder demands an increase?
Ask for the demand in writing, with the clause number it relies on. If it cites a government charge, ask for the notification or order, since the proforma requires one with the demand letter. Compare it with your signed agreement, not the brochure.
Section 11(4)(a) makes the promoter responsible for its obligations to allottees under the agreement for sale. If the demand has no basis in the agreement and the builder won't withdraw it, section 31 lets any aggrieved person file a complaint with Karnataka RERA for a violation of the Act, Rules or regulations. Our guide on filing a Karnataka RERA complaint online walks through the steps. You can also check the project on the Karnataka RERA website for its registration details and completion date.
Frequently asked questions
Can a builder increase the price because construction costs went up?
Not under the Karnataka proforma agreement. It calls the total price escalation-free, with exceptions only for charges levied by a competent authority, tax changes and carpet-area recalculation. If your agreement adds a cost-escalation clause, get a lawyer to read it before you sign.
Can GST changes increase what I pay?
Yes. Under the proforma, the amount payable goes up or down if taxes change. But a tax increase after the scheduled completion date, including any RERA extension, is not charged to you. Ask a CA how a change applies to your instalments.
Is there a limit on extra carpet area the builder can charge for?
Under the proforma, the builder can charge for an increase of up to 3% of your carpet area, at the agreed per-square-foot rate, at the next payment milestone. If the area reduces, the excess is refunded within 60 days with interest.
Does a price clause in my booking form still apply after the agreement?
The proforma's Savings clause says earlier documents like the application or allotment letter can't limit your rights under the registered agreement or the Act. Check that your agreement keeps this clause.
Where do I complain about an unfair price demand?
You can file a complaint with Karnataka RERA under section 31 of the RERA Act. Keep the demand letter, your agreement and payment receipts. A lawyer can tell you whether your facts support a complaint.
References
- Real Estate (Regulation and Development) Act, 2016, sections 11(4)(a), 13(1)–(2), 19(6) and 31 (K-RERA copy): https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 17 Oct 2026
- Karnataka RERA, Proforma Agreement of Sale (Downloads page), clauses 1.2, 1.3, 1.7 and 31: https://rera.karnataka.gov.in/downloadPage, accessed 17 Oct 2026
- Ministry of Housing & Urban Poverty Alleviation, RERA FAQs, question 47: https://rera.karnataka.gov.in/resources/staticpage/FAQ.pdf, 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.