What to Expect After Signing the Sale Agreement: Finalizing Your Home Purchase

Understanding Your Sale Agreement

Purchasing a new home? It starts with that sale agreement. This document is crucial. It’s like the first handshake between you and the builder. Dive into the details. Every last clause. Make sure unit specifics, total costs, payment timelines, possession dates, everything is crystal clear. Don’t forget to verify the RERA registration number, project approvals, and the expected timelines. No one likes delays, right? For RERA checks, use our handy project search guide. Source

Key Financial Clauses and Taxes

Next up, the financial side. The sale agreement should list all the taxes the builder will charge. GST applies only to under-construction homes, not the ones you can move into right away. Confirm if the GST on new home purchase is part of the overall price or if it’s tacked on later. Also, keep in mind stamp duty and registration fees are additional. For the latest on GST rates, check out these expert summaries. Source

Property type	GST rate	Notes
Affordable under-construction	1% without ITC	Subject to qualifying criteria
Other under-construction	5% without ITC	Standard for non-affordable units
Ready-to-move-in	Nil (no GST)	Taxed via stamp duty and registration

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Practical Tips Before Signing

A few practical tips:

1. Demand a payment schedule tying amounts to construction milestones.
2. Ensure there’s a clear cancellation and refund clause, it’s important.
3. Check if the builder will claim the input tax credit or share GST savings with you.
4. Review the conditions for defect liability and possession certificates. For more buyer-focused GST advice, check out this homebuyer guide. Source

And if something sounds puzzling, definitely get a lawyer or an accountant to rake through that sale agreement before you sign it.

GST on New Home Purchase: Payment Milestones After Signing the Sale Agreement

So, you’ve signed the sale agreement. What’s next? Now you need a clear payment plan. First, you’ll shell out a booking or earnest deposit. Then, as construction progresses, expect scheduled installments. Finally, there’s registration and any leftover charges before you take possession. Here’s a heads-up: GST rules can shift the final amount on under-construction properties.

Who Pays GST and When?

Remember, GST kicks in for under-construction homes. Builders collect this GST alongside stage payments, so always ask for a breakdown. Get it in writing! Rates can fluctuate based on property type, and recent reforms affect this too. For the nitty-gritty on changes, consult a detailed tax brief. Source | Source

Milestone	Typical % of BSP	Trigger	GST Applies?
Booking/Token	1-5%	On signing agreement	Generally yes for U/C
Down payment	10-20%	Within 30-60 days	Yes for U/C
Construction-linked installments	40-60% total	On slab/finishing	Yes for U/C
Final/Registration	Remaining	Before possession	No if RTO/OC ready

What to Check and Action Points

• Is your unit under-construction or move-in ready? Check the GST rate on your booking receipt.
• Ask for stage-wise invoices breaking down GST separately helps with home loan claims.
• Budget for stamp duty and registration charges separately. For a guide on stamp duty, check this related article. Source
• Remember your TDS obligations on property transactions. For a step-by-step, see our TDS note. Source

GST on New Home Purchase: Bank Disbursement & Financing Essentials

How do bank disbursements work after buying your new home? After signing, you’ll have to line up your lender and builder. For under-construction properties, banks usually disburse funds in stages according to builder invoices. If you’re buying a ready-to-move-in home, expect most banks to disburse at the registration stage. Also, clarify if GST hit your booking. Builders typically charge GST for under-construction units, not for homes ready for you to live in. Source

Steps to Ensure Smooth Financing

1. Get your final loan sanction and the sanction letter.
2. Share builder invoices, RERA approvals, and your PAN details with the bank.
3. Complete a tripartite agreement if necessary.
4. Authorize the disbursement to the builder or registrar.
5. Find out if your loan covers GST or if you need to pay that upfront.

Stage	Typical Document	Timeline	Typical Amount Covered
Loan sanction	Sanction letter, ID, income docs	7–14 days	Pre-approved amount
Stage disbursement	Builder invoice, site progress cert	7–21 days per stage	70–90% of stage cost
Registration	Sale deed, NOC, bank cheque	On registration day	Remaining loan amount

Useful Checks and Tips

• Verify LTV and pre-EMI rules with your lender. For clarity, see our LTV limits guide.
• Confirm whether GST on new home purchase is included in your loan or needs to be paid out-of-pocket.
• Keep copies of all invoices and bank transfer advice handy for registration and TDS proofs. Check our article on GST and essential home loan documents for more info.

Registration Scheduling and Documentation-GST on New Home Purchase

After signing that sale agreement, don’t hang around, fix that registration date. First, confirm whether GST applies remember, it’s only for under-construction homes.

What to Schedule and When-GST on New Home Purchase Matters

• Book your slot at the sub-registrar office right after the builder hands you the allotment letter or sale deed draft.
• Get the bank NOC sorted out and ensure you have the home loan discharge certificate if the property has a mortgage.
• Make sure payment receipts, GST invoices, and the builder’s tax breakdown are ready, all crucial if GST hit your purchase. Recent GST rates may have changed, so confirm the rate for your specific housing category with your developer.

Essential Documents (bring originals & 2 photocopies)

Document	Issued by	Why Needed
Agreement to Sale	Builder/Seller	Proof of terms
Allotment Letter/Invoice	Builder	Price breakup, GST charged
Identity Proof	Buyer	KYC for registry
PAN & Form 60/61	Buyer/Seller	Tax compliance
Encumbrance Certificate	Sub-registrar	Title clear check
Home loan NOC	Lender	Remove mortgage
Power of Attorney (if any)	POA holder	Legal signing permission

Tips to Avoid Delays

• Double-check the developer’s GST invoice against your sale agreement. For more on this, read our guide on GST for flats.
• If possible, pre-pay stamp duty online. Review our internal stamp duty guide for state-specific rates and calculations. Source
• Arrive early and bring originals. Keep contact details for the sub-registrar, builder, and your lawyer handy, just in case there are last-minute snags.

Planning Your Interior: Timeline and Considerations-GST on New Home Purchase

When GST Applies

Understanding the tax rules is key. GST is all about under-construction properties, nothing for the ready-to-move-in ones. Here’s the kicker: affordable under-construction homes enjoy lower GST rates than their non-affordable counterparts. And input tax credit? Nope, not for homebuyers. Just remember, the builder tags GST on those stage payments, not on stamp duty or registration fees. Source

Property Type	GST Applies?	Typical Rate
Under-construction (affordable)	Yes	1% (no ITC)
Under-construction (non-affordable)	Yes	5% (no ITC)
Ready-to-move-in / Completions	No	Exempt

Interior Planning Timeline and Costs

First things first, sync your interior plans with your possession date. Ask your builder for a provisional possession date and check on OC status. Plan out your measurements and design 4 to 6 weeks before moving in. Order the big-ticket items like modular kitchens and wardrobes at least 3 weeks in advance of installation. After possession, aim to finish major work within 4 to 8 weeks to avoid living like a nomad.

Costs to Expect

• GST on interiors: typically, contractor services and materials come with GST, 18 percent is common for services.
• No GST on stamp duty or registration, but check those costs separately. Source
• Hidden costs can creep up. It’s smart to set aside 5 to 12 percent for unexpected expenses. Source

Practical Checklist

1. Confirm the builder’s GST invoice schedules before making final payments.
2. Don’t wait, book an interior designer early and agree on project milestones.
3. Align your delivery dates with your possession letter and check OC status. Source
4. Keep some funds handy for post-possession fixes while in the defect liability period.

Stick to this timeline, check those tax details, and you’ll keep your interiors on track and within budget.