When you go to buy a home, the final amount you pay is always higher than the simple agreement price because of extra costs like registration charges, Goods and Services Tax (GST), and corpus fund fees. Registration charges are state government fees that legally transfer property ownership to your name, while GST is a mandatory tax on under-construction flats. Meanwhile, the corpus fund is a one-time emergency reserve that your developer collects to handle major repairs and structural upkeep over time in communities like Brigade Granada. Knowing how these three expenses work helps you plan your home loan budget easily and avoids sudden financial stress when taking possession of your new house.
When real estate developers show a property price on billboards or online ads, they are usually quoting the base price. This rate covers the building construction and your flat's floor space, but it leaves out government taxes and legal charges.
In real life, these additional charges can add 10% to 15% to your total cost. Understanding where your money goes gives you full confidence when reading property cost sheets.
The exact numbers depend on your state, whether the home is in a city or town, and whether the buyer is male or female:
Important Note: You must clear these fees at the sub-registrar office right before you receive the physical keys to your flat.
GST applies to real estate transactions based on specific rules set by the central government.
| Home Type | GST Rate | Quick Condition |
|---|---|---|
| Under-Construction (Regular Homes) | 5% | Flats above ₹45 Lakhs or larger than standard sizes. |
| Under-Construction (Affordable Homes) | 1% | Flats up to ₹45 Lakhs with limited carpet area. |
| Ready-to-Move-In Homes | 0% (No Tax) | Properties that already have an Occupancy Certificate (OC). |
When you buy an apartment under construction at a township like Brigade Granada on Whitefield-Hoskote Road, the government views the work as a ongoing service. Once the builder completes the project and receives an Occupancy Certificate (OC), it becomes a finished building, and no GST applies.
A corpus fund (also called a sinking fund) is a one-time deposit you pay to the builder when moving into your new home.
Unlike your monthly maintenance fees—which cover daily bills like security staff, power for lifts, and garden watering—the corpus fund remains untouched in a bank account. It is reserved for big long-term repairs, such as:
Here is a quick look at how these charges affect your real outlay when buying a home:
| Cost Element | Approximate Calculation | Estimated Amount |
|---|---|---|
| Base Price | Standard Agreement Rate | ₹1,20,00,000 |
| GST | 5% (Under-construction rate) | ₹6,00,000 |
| Stamp Duty | Approx. 5% | ₹6,00,000 |
| Registration Fee | 1% | ₹1,20,000 |
| Corpus Fund Deposit | ~₹150 / sq. ft. (for 1,200 sq. ft.) | ₹1,80,000 |
| Total Estimated Budget | — | ₹1,35,00,000 |
Stamp duty is a state government tax that makes your property documents legal in court, while the registration fee covers the operational work of recording your ownership in government registers.
No, you do not pay GST on ready-to-move homes that have already received an Occupancy Certificate (OC) from the local city authority.
No, the corpus fund is non-refundable. When you sell your apartment, your share in the society reserve fund automatically transfers to the new owner.
Usually, no. Banks calculate home loan eligibility based mostly on the property's base agreement cost. You usually need to pay GST, registration fees, and stamp duty out of your own savings.
Advance maintenance covers everyday running expenses like security, water, and lighting for the first year or two. The corpus fund is an emergency fund saved for major structural work years down the line.
The builder manages the money temporarily during handover, but they must legally transfer the entire corpus fund—plus any bank interest earned—to the newly formed Resident Welfare Association (RWA).
Yes, stamp duty rates depend on your state government and whether your flat falls within city corporation limits, village panchayats, or urban development areas. Some states also offer lower stamp duty rates for women buyers.
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