mansukh

My apology if this is repost, I did not find anything in search.

To book an apartment in pre-launch(where timing plays key role at times to get desired unit), Can I transfer booking amount(5-6L) to builder online from NRE account? Is this safe? In case of no allotment, do builders return easily to my account?

Last I tried sending cheques(3 cheques of 2L each....SBI NRE has limit of 2L for cheques..will check with bank if that can be increased), but could not make to builder in time and did not get desired unit. so overall did not work for me.

I would like to know what is commonly used procedure by NRIs.

Thanks in advance.

mansukh

53 views and no reply. I guess many of us must have come across this problem.
Your help is appreciated.

bajamit

It all varies from builder to builder. Can't say same thing about all the builders. But I haven't heard so far of the money being stuck with a builder but there might be delays in getting your money back if the builder is not trust worthy.

PioneerTrain

To book an apartment in pre launch it is good to transfer booking amount to builders online.It is safe enough but builders should be paid timely.

Krazy Yuppie

Pay by cheque only with your name on the back and particulars and keep a photocopy

kk83710

its alright. You can pay online as well. But first try to transfer a small amount and ask the builder to confirm. Then transfer the due amount upon the success of first transaction.

Even Cheque/DD are good option.

But keep sufficient proof of the transaction made like screenshot/xerox as applicable.

ashishi

Please don't take risk in any pre-launch - that too from an NRE account - I mean when you are not in country. Even a regular launch is full of risk. Better buy where 50% construction is completed in SCHEDULED TIME

Jhashank RCA

Dear mansukh,

There are 2 recommended options to pay a builder (or for that matter any payments to be made by an NRI to someone in India) :

i) Cheque issued from NRO account : NRO and NRE accounts have different advantages and disadvantages. The biggest difference is that you can put back Indian currency into an NRO account (which means any income generated in India or any money received from within India in INR) whereas in an NRE account, you are not allowed to do so. NRE account can only accept foreign currency credits into the account and that too money should come form outside of India. In short, its a one way transfer in NRE whereas NRO can both pay and receive indian currency.

Why is this method advantageous?
Incase you do not get the unit of your choice, or if the project is delayed or shelved etc, the builder will not be able to remit money back to your NRE account but can do so to your NRO account only. Hence its safer to pay through NRO than NRE.

ii) ONLINE Wire Transfer :
The other best way to make payment is through net banking/wire transfer. But for this too, you have to send it in INR and you may not be able to remit foreign currency without converting it into INR.

Infact the most commonly used and preferred method is a combination both the above.

Step 1 - Client transfers money from his offshore account to his NRO account in India.
Step 2 - Then issues a cheque from his NRO account or again does wire transfer from NRO account to the builders account.
Above is safer than doing direct credits or cheque payments etc.

I don't recommend SBI as banks like HDFC and Standard Chartered or HSBC have much better net banking systems that are easier and more efficient to operate.

Hope this answers your question.

Cheers.

__________________

gharondabhai

Pre-launch is ONLY by cheque, absolutely no second thought. Never be penny wise and pound foolish.

Pre-launch is strictly NO for novice NRIs.

Pre-launch is NO for NRI unless you have some active close person staying near by for constant follow up.

Pre-launch is not recommended, unless you are well aware of the builder or the agent that you are dealing with.

Pre-launch is for the 'prefered one' and you are not welcome unless you qualify yourself as KHAS!!
There is no free lunch