Pre-launch advertisements can make early access feel exclusive: limited inventory, priority allocation and a special price if money is transferred immediately. Before paying, distinguish an expression of interest (EOI) from a formal booking and from a signed agreement for sale. These documents can create very different obligations. A receipt describing an amount as refundable is not enough unless the operative terms are clear and enforceable.
## What is an expression of interest? An EOI is commonly used to record a prospective buyer's interest before a definitive purchase arrangement. It does not have one universal legal meaning. Its effect depends on the wording, money collected, promises made and the status of the project. Read whether the form grants a specific unit, price priority, a right to cancel or merely an opportunity to receive future information. Treat vague verbal offers as marketing, not contractual rights.
## Verify whether the project may lawfully be marketed The Real Estate (Regulation and Development) Act, 2016 restricts advertising, marketing, booking, selling or offering for sale in projects that require registration until the necessary registration is obtained. Exceptions and applicability depend on project facts. Search the exact name and phase on WBRERA rather than accepting a different project's registration number. Ask for the sanctioned plan, developer's legal name and a current disclosure of the phase being offered.
## Understand the advance-payment safeguard Section 13 of the Act generally prohibits a promoter from accepting more than ten per cent of the cost of an apartment, plot or building as advance payment or application fee without first entering into a written agreement for sale and registering that agreement as required. Do not confuse that rule with a blanket right to an immediate full refund of every token amount. Cancellation provisions and remedies need separate legal review.
## Compare an EOI, booking form and agreement An EOI may simply register interest; a booking form may specify a proposed unit and cancellation rules; an agreement for sale should set out essential transaction rights and obligations under applicable law. The labels are not decisive if the documents contain contradictory clauses. Ask exactly when the allocation becomes firm, which document controls refunds and when the promised price can change.
## Keep payments traceable Use verifiable beneficiary details, request an official receipt referencing the legal project entity and avoid paying into personal accounts. Retain brochures and screenshots of representations that influenced your decision, including date and source. If a lender is involved, confirm whether and when its disbursements begin.
## Look for these red flags Pressure to pay before registration checks, refusal to provide written refund terms, mismatch between seller and receipt names, a promised possession date that differs from public records, or demands to sign undated forms all warrant caution. Avoid signing on the assumption that the salesperson can change a written term later.
