[ Buyer Education ]

OC, EC, and other charges explained: what developers charge beyond the base price

10 February 2026 · 5 min read

The advertised price of an apartment is rarely the final amount you pay. Developers charge various additional amounts under different heads, and these can add 10-20% to the base price. Knowing what these charges are helps you compare projects fairly and budget accurately.

Common additional charges

• Floor rise: An additional charge per floor, typically starting from the 3rd or 4th floor. Higher floors cost more.
• Preferential location charge (PLC): Extra charge for corner units, park-facing units, or units with better views.
• Car parking: Open and covered parking are usually charged separately, and can range from a few lakhs to significant amounts in premium projects.
• Club membership: A one-time fee for access to the project's clubhouse and recreational facilities.

Statutory and legal charges

• GST: Applicable on under-construction properties. Currently 5% without input tax credit for most residential units.
• Stamp duty and registration: Typically 5% plus 1% registration in Karnataka.
• Legal and documentation charges: Fees for agreement preparation, property documentation, and related legal work.

Maintenance-related deposits

Developers typically collect a maintenance deposit (often 1-2 years of maintenance charges upfront) and a corpus fund contribution. The corpus fund is meant to cover major repairs and replacements for common areas in the future. These are one-time payments at the time of possession.

How to handle these charges

• Ask for a complete cost sheet that lists every charge, not just the base price per square foot.
• When comparing two projects, compare the all-inclusive cost per carpet square foot.
• Negotiate where possible. Some charges like club membership or PLC may have room for discussion.
• Ensure all charges are mentioned in the sale agreement. Verbal assurances about waived charges carry no legal weight.