Festive "pre-launch" and EOI offers: what RERA section 3 lets a developer legally take from you

Rules and rates as of 12 October 2026.

Why this matters in October

Between Navratri and Diwali, Mumbai's phones fill with messages about "pre-launch prices", "EOI windows" and "soft launches" for towers that have not yet broken ground. The words change every season. The law they run into has not changed since 2016.

Section 3(1) of the Real Estate (Regulation and Development) Act, 2016 says no promoter shall "advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner" any apartment or plot in a real estate project without first registering it with the state's Real Estate Regulatory Authority. In Maharashtra, that authority is MahaRERA, and it covers Mumbai, Thane and Navi Mumbai.

Notice how wide the verbs are. "Invite persons to purchase in any manner" does not care whether the payment is called a booking amount, an expression of interest, a token, or a refundable deposit. The Act's own definition of "advertisement" in section 2(b) includes "any notice, circular or other documents or publicity in any form" informing people about a project. A WhatsApp brochure is publicity in a form.

The four sections that matter

• Section 3: no advertising, marketing, booking or selling before registration. Small projects are exempt only if the land does not exceed 500 square metres or the apartments do not exceed eight across all phases (section 3(2)(a)).
• Section 11(2): once registered, every advertisement or prospectus must "mention prominently" the authority's website address and include the project's registration number.
• Section 13(1): even for a registered project, the promoter cannot accept more than 10% of the cost of the flat as an advance or application fee without first signing and registering a written agreement for sale.
• Section 59: breaching section 3 can attract a penalty of up to 10% of the project's estimated cost, as determined by the authority. Continuing to violate it, or ignoring the authority's order, can mean imprisonment of up to three years, or a further fine of up to another 10% of the estimated cost, or both.

Brokers are bound too. Section 10(a) says a real estate agent shall not facilitate the sale or purchase of a unit in a project that is not registered, and section 62 sets a penalty of ₹10,000 a day, up to 5% of the unit's cost.

MahaRERA is also reported to have directed, through its own orders, that advertisements carry a project-specific QR code linking to the project's page on its website. We could not open MahaRERA's site to read those orders, so the requirement and its details should be confirmed there.

Before registration vs after: what a seller may do

Action	Before MahaRERA registration	Registered, no agreement yet
Advertise or send brochures	Not allowed (s.3)	Allowed, with registration number and website (s.11(2))
Take an "EOI", token or booking amount	Not allowed, any amount (s.3)	Allowed, up to 10% of the flat's cost (s.13)
Allot a specific flat	Not allowed (s.3)	Allowed
Take more than 10%	Not allowed	Only after a registered agreement for sale (s.13)
Broker markets the project	Not allowed (s.10(a))	Allowed

Worked example: a ₹2 lakh "EOI"

Say you are asked for a ₹2 lakh expression of interest on a flat priced at ₹1.1 crore.

If the project is registered, the section 13 ceiling before a registered agreement is 10% × ₹1,10,00,000 = ₹11,00,000. ₹2,00,000 ÷ ₹1,10,00,000 = 1.82% of the price, well inside the cap. The question then is what the receipt says about refund, allotment and the timeline to an agreement.

If the project is not registered, the 10% arithmetic does not apply at all. Section 3 bars the booking itself, whether the amount is ₹2 lakh or ₹2,000.

Now the promoter's side. Take a project whose estimated cost the authority fixes at ₹150 crore. The maximum penalty under section 59(1) is 10% × ₹150 crore = ₹15 crore. If the breach continues, section 59(2) allows a further fine of up to another ₹15 crore, which takes the combined ceiling to ₹30 crore, and/or imprisonment of up to three years. These are maximums; the authority decides the actual amount.

How to check a project's registration

1. Ask for the MahaRERA registration number in writing. Any ad for a registered project must carry it under section 11(2).
2. Open MahaRERA's official website (maharera.maharashtra.gov.in) and use its search for registered projects. Search by the registration number, or by project name and district.
3. Match three things to the sales pitch: the promoter's name, the project's address, and the specific building or phase. A registration for "Phase 1" does not cover a new tower in the same complex.
4. Open the project page and look at the documents uploaded there, including the approved plans and the proposed completion date.
5. If the ad has a QR code, scan it and confirm it opens the same project page on the MahaRERA site, not a developer's microsite.

If a project does not show up, you can complain to MahaRERA. A property lawyer can read any receipt or "EOI form" before you sign it.