Short answer: The most useful builder offer questions: what's the price without the offer, who pays if the builder stops, does it change your GST, stamp duty or loan size, and is it in the agreement? A discount below the guidance value doesn't cut your stamp duty, and a subvention offer can leave you paying EMIs if the builder defaults.
- Ask for two prices: with the offer and without it, in writing.
- Subvention has a record: in 2025 the Supreme Court ordered a CBI probe after builders stopped paying promised EMIs and banks turned to buyers (news).
- Stamp duty is on the higher of price and guidance value, so a deep discount may not lower it.
- A bigger loan costs for 20 years. In our example, a subvention deal loses about ₹2.6 lakh even when everything goes to plan.
- Our OFFER check: original price, fine print, funding risk, effect on charges, records.
- O: What's the original price?
- F: What does the fine print say?
- F: Who carries the funding risk?
- E: What's the effect on charges?
- R: Is it on record?
- What happened with subvention schemes?
- Worked examples
- The OFFER check (our framework)
- Before you accept
- CA note
- Lawyer note
- Frequently asked questions
- Talk it through with acre&key
- Sources
Festive season brings discounts, "no EMI till possession", free parking and stamp duty "waivers" to Bengaluru. Some are real savings. Some move cost from one line to another. These 18 questions help you tell which.
O: What's the original price?
- What's the price without the offer, in writing, for the same unit?
- Is the offer price below the guidance value? If so, stamp duty is still charged on the guidance value.
- Is the discount on the agreement price, or paid back later as cashback?
- Does the offer end on a date that rushes your checks?
F: What does the fine print say?
- Is the offer written into the agreement for sale, or only in a brochure or WhatsApp message?
- What are the conditions: full payment by a date, a specific loan, a specific unit?
- What happens to the offer if you cancel, or the builder is late?
- Does it ask for more than 10% before a registered agreement? RERA s.13 doesn't allow that (RERA Act).
F: Who carries the funding risk?
- On a subvention offer, who signs the loan? You do, so the repayment liability is yours.
- Does the builder pay pre-EMI until possession, or only for a fixed period? Our under-construction questions show what pre-EMI costs.
- Is the loan disbursed by construction stage, or largely upfront?
- What happens to your EMIs if the builder stops paying or the project is delayed? See our delayed possession guide.
E: What's the effect on charges?
- Does the offer change the loan amount, and so your EMIs for 20 years? Check it with our EMI-to-income page.
- Is GST charged before or after the discount? Ask your CA.
- If the builder "waives" stamp duty, is it a lower price, a refund, or the builder paying the department? Ask your CA and lawyer how it should appear.
R: Is it on record?
- Is every free item (parking, club, fittings) listed in the agreement with its value? Then compare offers on price per carpet sq ft.
- Is the subvention period and the builder's obligation in the tripartite agreement with the lender?
- Will the bank give you a written statement of what the builder has paid each month?
What happened with subvention schemes?
In April 2025, the Supreme Court noted a prima facie "unholy nexus" between builders, banks and housing finance companies in subvention schemes. Builders had promised to pay EMIs until possession, defaulted, and lenders then demanded payment from buyers of unfinished flats. The Court directed the CBI to open enquiries (Supreme Court order, via LiveLaw). In September 2025 it allowed six more cases covering projects in cities including Bengaluru (The Hindu, news).
That doesn't make every subvention offer bad. It means the builder's promise is only as good as its ability to keep paying.
Worked examples
Worked example 1: what a cash discount is really worth
Illustrative. A ₹1,00,00,000 under-construction flat with a 4% discount.
| Item | If the new price is above guidance value | If guidance value is ₹97,00,000 |
|---|---|---|
| Discount | ₹4,00,000 | ₹4,00,000 |
| GST saved (5%), if on the agreement price | ₹20,000 | ₹20,000 |
| Stamp duty and registration saved (7.6%) | ₹30,400 | ₹22,800 (only ₹3 lakh fall in duty value) |
| Total saving | ₹4,50,400 | ₹4,42,800 |
Push the price further below guidance value and the duty saving stops altogether. See our full cost guide.
Worked example 2: subvention vs the lower price
Illustrative. The builder offers ₹1,00,00,000 with no pre-EMI for 36 months, or ₹94,00,000 without. Ask for both prices; the gap varies. Loans are 75% at 8.5%, disbursed evenly over three years, repaid over 20.
| Item | Working | Amount |
|---|---|---|
| Pre-EMI you'd avoid | Average ₹35,25,000 × 8.5% × 3 years | +₹8,98,875 |
| Extra price, with GST and duty | ₹6,00,000 × 1.126 | −₹6,75,600 |
| Extra interest on the bigger loan | ₹4,50,000 more × ₹867.82 per lakh × 240 months, less the ₹4,50,000 | −₹4,87,246 |
| Net, if everything goes to plan | −₹2,63,971 |
This ignores the time value of money, so treat it as rough. And it assumes the builder pays all 36 months and finishes on time. If it stops paying, you pick up the EMIs. Run your own figures with our EMI calculator.
The OFFER check (our framework)
| Letter | Question | Questions |
|---|---|---|
| O: Original price | What does it cost without the offer? | 1 to 4 |
| F: Fine print | What are the conditions? | 5 to 8 |
| F: Funding risk | Who pays if the builder doesn't? | 9 to 12 |
| E: Effect on charges | What happens to GST, duty and the loan? | 13 to 15 |
| R: Records | Is it all in the agreement? | 16 to 18 |
If an offer only works because the builder keeps a promise for years, price it as if the promise might fail.
Before you accept
- [ ] Both prices, with and without the offer, in writing
- [ ] Guidance value checked on Kaveri
- [ ] Offer terms in the agreement, not the brochure
- [ ] No more than 10% before a registered agreement
- [ ] Subvention period and builder's duty in the tripartite agreement
- [ ] Loan disbursed by construction stage
- [ ] Net value worked out after GST, duty and loan interest
- [ ] RERA checks done anyway (token checklist)
CA note
How a discount, cashback or stamp duty "waiver" affects GST and income tax depends on how it's documented. Ask a CA before you sign.
Lawyer note
Have a property lawyer read the agreement and any tripartite loan agreement before you accept an offer.
Frequently asked questions
The price without the offer, who pays if the builder stops, how the offer changes your GST, duty and loan, and whether it's written into the agreement.
It depends on the builder's ability to keep paying. In 2025 the Supreme Court ordered a CBI probe after builders defaulted and banks pursued buyers. You stay liable for the loan.
Only down to the guidance value. Stamp duty is charged on the higher of the price and the guidance value, so check it on Kaveri.
The builder pays the interest on your disbursed loan until a set date or possession. Check which, and what happens if the project is late.
Often. Ask for both prices in writing and compare the gap with the pre-EMI you'd save, as in our example.
Usually the builder lowers the price or reimburses you. The duty is still payable to the state on the higher of price and guidance value. Ask a CA how it's recorded.
Only on the terms in your agreement. Read the cancellation and forfeiture clauses before accepting, and keep the token within RERA's 10% limit.
Check that it's listed in the agreement with its value. Then compare the all-in price per carpet sq ft with other options.
Sources
Checked 19 Oct 2026.
- Supreme Court, Himanshu Singh v Union of India, order of 29 Apr 2025, 2025 LiveLaw (SC) 574: https://www.livelaw.in/pdf_upload/2025-livelaw-sc-574-himanshu-singh-v-union-of-india-29-apr-2025-613229.pdf
- The Hindu, Supreme Court allows six more CBI cases, 23 Sep 2025 (news): https://www.thehindu.com/news/national/fraud-against-ncr-homebuyers-supreme-court-nod-to-cbi-to-register-six-more-cases-in-builder-bank-nexus/article70083957.ece
- Real Estate (Regulation and Development) Act 2016, s.13, K-RERA copy: https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf
- Karnataka Stamp Act 1957: https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957%28E%29.pdf
- GST Council, FAQ on real estate: https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- RBI Master Circular, Housing Finance (LTV): https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12824
