Homebuyers in the Indian state of Maharashtra may soon get new protection: authorities plan to amend the Registration Act to cap advance payments under sale agreements (agreement to sell) at 75-80% of the property value. The balance would be due only at final registration.
Why it matters
Currently, developers often demand nearly full payment upfront when the agreement is signed, creating risks: if construction stalls or disputes arise, refunds are difficult. The new law aims to reduce these risks and make the market more transparent.
Practical implications
If enacted, buyers will need to plan payments differently, with a significant portion paid later. This could also affect payment methods, such as using cryptocurrencies or virtual cards for international transfers. While the law pertains to India, it reflects a global trend toward stricter regulation of deposits and advance payments.
Connection to your payments
For those investing in overseas property or making large purchases, it's important to monitor such changes. You may need to adjust payment schedules and transfer methods. Virtual cards and cryptocurrencies can be convenient for flexible settlements, but always check local regulations.
Conclusion
Regulating advance payments is a step toward buyer protection, but it requires adaptation from all market participants. Stay attentive to contract terms and plan payments in light of new requirements.
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