Buying an apartment looks simple on the brochure - but the final bill often includes a list of extra charges builders, banks, and the government add on top of the headline price. This guide walks you through the hidden costs that most buyers miss, with plain explanations, quick examples, and a one-page checklist you can use before you book.

Quick snapshot — the top things that add to your cost

• Stamp duty + registration: state charges that can add several lakhs (stamp duty in Karnataka depends on the price band; registration fee was recently hiked).

• GST on under-construction properties: applies in addition to stamp duty if the flat is not ready. Rates depend on whether the project is classified as affordable or not.

• Developer charges: parking, PLC/Floor-rise, club membership, EDC/IDC and advance maintenance / corpus funds can add a big one-time cost at handover.

• Bank & legal fees: home-loan processing fees, valuation/legal checks, and TDS (if applicable) all add to your cash outflow.

1. Stamp duty & registration - the unavoidable state charges

In Karnataka, stamp duty is charged on the property value (bands typically run roughly 2%–5% depending on price), and there’s a separate registration fee. Importantly, Karnataka raised the registration fee from 1% to 2% (effective Aug 31, 2025) - that makes the government portion noticeably larger for Bangalore buyers. Always budget for both.

What to ask: What stamp duty band will apply, and will the builder register the sale deed at the declared sale price or the circle rate? (If the circle rate is higher, you’ll pay on that.)

2. GST (only for under-construction flats) - this can be a big add

If you’re buying an under-construction apartment, GST applies to the sale consideration. For residential projects, the commonly applicable rates are 1% for eligible ‘affordable’ projects and 5% for non-affordable housing (confirm classification on your project). Ready-to-move-in units (with OC) are not subject to GST. Factor GST into your budget for UC buys.

Tip: GST + stamp duty + registration = the main statutory hit on your budget for UC projects.

3. Developer-imposed one-time charges (PLC, floor-rise, parking, EDC/IDC)

Builders frequently collect extra line items at booking or possession:

• Preferential Location Charge (PLC) - extra per sq.ft for park-facing / corner / high-floor / road-facing units. Rates vary (developers set these; common ranges are hundreds per sq.ft).

• Floor-rise / floor premium - higher floors often cost extra per sq.ft.

• Parking - paid per slot; in Bengaluru, this can range from a couple of lakhs in mid-segment projects to larger sums in premium towers. Expect a separate cost for stilt/covered slots.

• EDC / IDC (external/internal development charges) - billed to buyers, though collected by the developer for civic infrastructure. These are customary and project-specific.

Ask the sales rep: Request exact PLC/Floor-rise/parking prices in writing and include them in your sale agreement.

4. Advance maintenance, corpus fund & handover deposits

Builders usually ask for an advance maintenance deposit (often 6-12 months or even more) and a corpus fund (one-time reserve for big repairs). These are paid at possession and can range from a few tens of thousands to lakhs, depending on project size and amenities. Make sure you get a receipt, and the corpus is handed over to the residents’ body after RWA formation.

Pro tip: Ask for a written schedule showing how advance maintenance is calculated (₹/sq.ft or fixed slab) and confirm when the RWA will take over the funds.

5. Home-loan & bank costs

If you finance the purchase, add bank charges to your list: processing fees (often 0.25%-1% of the loan amount), legal/valuation charges, and GST on processing fees. Compare lenders - processing fees and administrative charges vary widely across banks/NBFCs.

Remember: banks may also charge valuation or document retrieval fees during the loan approval process - get exact figures in writing.

6. Brokerage & agent fees

If you use a broker or agent, expect to pay brokerage (commissions) - typically around 1%–2% of the final sale value (this can vary and may be negotiated). In some builder direct sales, the builder pays the agent; in resale transactions, buyers and sellers may both pay commissions. Confirm who pays and include it in your budget.

7. Legal & registration misc. costs (lawyer fees, stamp on agreement)

You’ll also pay for:

• Lawyer/title check (usually ₹10,000–₹50,000 depending on complexity),

• Stamp duty on the Agreement (if applicable) and notarisation,

• Registration misc. charges (misc. legal/advocate/attorney handling).

Paying a reasonable lawyer fee early can save a lot more later - treat it as insurance.

8. Connection / NOC / handover charges & society onboarding

Builders may charge for electricity/water connection, club registration, Wi-Fi, meter fees or admin NOCs. After handover, there can be membership or one-time society fees for RD/clubhouse access or gated-community amenities. These are typically billed at possession; ask for a breakup and receipt. (SOBHA Limited)

9. Taxes & compliance you may overlook (TDS, property tax adjustments)

If the property value is above ₹50 lakh, the buyer must deduct 1% TDS (Section 194-IA) and deposit it to the government - this is your statutory responsibility, not the seller’s. Missing this creates hassles and penalties. Also, check how property tax reimbursements or arrears will be handled at handover. (Income Tax India)

10. Small but real extras (moving, interiors, temporary rent + dual EMIs)

Don’t forget:

• Shifting / moving costs and initial furnishing.

• Interior fit-outs (budget at least 8-15% of property value if you want a full makeover, or a sensible fixed amount for basic finishes).

• If possession is delayed, you might pay rent + EMI for months - keep a contingency buffer (3-6 months of EMIs + rent recommended).

Example: How the extras add up

Assume: booking a ₹1.5 crore under-construction flat (numbers rounded):

• GST (5% for non-affordable) = ₹7.5 L.

• Stamp duty (Karnataka 5% band) = ₹7.5 L.

• Registration (new 2%) = ₹3.0 L.

• Parking + PLC + corpus + advance maintenance (project dependent) = ₹2-8 L (example range).

• Loan processing & other bank charges = 0.25%-1% of loan + valuation/legal fees (₹10k-₹50k).

Total extra (typical) = several lakhs - always add a 7-10% buffer (or more) to the base sale price when planning funds for an under-construction purchase.

Quick checklist before you sign/pay more

• Get a written price breakup (base price + PLC + parking + EDC/IDC + taxes + maintenance + corpus).

• Confirm the project’s GST classification and ask for an invoice/receipt for GST payments.

• Ask for the exact stamp duty/registration calculation that the builder will follow (declared price vs circle rate).

• Check the possession date & delay penalty clause in the agreement.

• Request a written policy on handing over corpus/advance maintenance to RWA.

• If buying resale, confirm who pays brokerage and the exact % in writing.

• If price > ₹50L, be ready to deduct 1% TDS and file Form 26QB.

FAQs

Q: Do I pay GST on ready-to-move flats?
A: No - GST generally applies only to under-construction properties. Confirm the builder’s classification and get receipts.

Q: Will the builder pay my broker’s commission?
A: Sometimes, often for new launches, the builder pays marketing commissions. For resale deals, you’re likely to share or pay brokerage. Always confirm in writing.

Q: How much should I budget as a contingency?
A: Aim for at least 7-10% extra over the advertised price for UC buys (taxes + developer fees + bank/legal costs + small extras). For RTM buys, the buffer can be slightly lower but still allows for registration/stamp duty and transfer costs.