Real Estate
The due-diligence checklist to run before you pay a booking amount in Gurugram
Booking amounts are paid on enthusiasm and recovered through litigation. Here is the sequence of checks that belongs before the cheque.
Why the sequence matters more than the checklist
Almost every buyer eventually gets the same documents. The difference between an easy purchase and a difficult one is when they were obtained. Once a booking amount has been paid, your leverage in negotiating terms drops sharply, and any problem discovered afterwards becomes a request for refund rather than a condition of purchase.
The order below front-loads the checks that can cancel a decision, and leaves the ones that only affect terms for later.
1. Establish what you are actually buying
Brochures describe an intention. The regulatory record describes an obligation. Before anything else, establish the registered project name, the registration number with the relevant authority, the licensed land parcel, and the declared completion timeline.
- Project registration number and its status on the state authority portal
- Licence and approvals covering the land parcel being developed
- Declared possession date on the registration, not on the brochure
- Sanctioned plan for the specific tower, floor and unit under discussion
2. Examine title before, not after
For a resale property, the ownership chain and encumbrance position are decisive. For a new project, land title and the developer's right to develop are the equivalent question. In both cases the check is documentary, and photocopies are not sufficient — originals or certified copies should be produced.
Where a property has passed through inheritance, partition or a power of attorney, examine each of those transfers rather than assuming continuity.
3. Build the all-in cost sheet
The quoted price is rarely the amount you will pay. A realistic cost sheet includes the base price, floor and location charges, parking, club and maintenance deposits, applicable stamp duty and registration charges, GST where applicable to an under-construction purchase, and the fit-out you will need before you can actually live there.
This total, not the headline number, is what should be compared across shortlisted options and tested against your funding plan.
4. Read the agreement as though there is a dispute
The clauses that matter are the ones nobody reads at signing: the payment schedule and what triggers each instalment, the possession date and what counts as an excusable delay, the compensation payable if the date slips, the consequences of your own delay in payment, and what happens to the deposit if either side withdraws.
Builder agreements are drafted for the builder. That is not improper — it is simply why the buyer needs the document reviewed before signature rather than after.
5. Settle the tax position before you commit
Two questions arise on almost every purchase: whether TDS is deductible on the payment and at what rate, and how the purchase interacts with any capital gain you are carrying from a previous sale. Both have deadlines that are easy to miss and expensive to fix.
If you are buying from a non-resident seller, the deduction obligations differ from a resident transaction and the liability for getting it wrong sits with the buyer.
Frequently asked
Is a token amount refundable if title problems are found later?
It depends entirely on what the booking document says. Many booking forms make the amount non-refundable or partially forfeitable. That is precisely why verification should precede payment.
Can I rely on the bank's legal check if I am taking a loan?
A lender's check protects the lender's security interest, which is related to but not the same as your interest as a buyer. An independent verification examines questions the lender may not need answered.