Additional Charges When Buying a Flat: Floor Rise, PLC and Parking Explained
Floor rise, PLC and parking charges can increase the cost of a flat beyond its base price. Understand what these charges cover, how builders calculate them and what buyers should check before booking.
These additional charges can significantly affect your property budget. Understanding what each one covers, how builders calculate it and which costs you should verify can help you make a more informed buying decision.
This guide explains the common charges, includes a calculation example and highlights what to check before booking a flat.
Floor Rise, PLC and Parking: What Each Charge Means
| Charge | What It Pays For | How it is Usually Quoted | Can You Negotiate |
|---|---|---|---|
| Floor rise charge | A premium for a higher floor, which may offer better views, natural light or ventilation, depending on the building and surroundings. | Per sq ft, for each floor above a base floor | May be negotiable, depending on the project and builder's pricing terms |
| PLC (preferential location charge) | A premium for a unit with a preferred location, such as a park-facing, corner or road-facing apartment. The project should clearly define which features qualify for PLC. | Per sq ft, and a flat may carry more than one PLC | May be negotiable, depending on the project and agreement. |
| Parking charge | Charges may apply to designated parking facilities, depending on the project's layout, applicable state laws and the buyer agreement. Open and stilt parking may be treated as common areas under certain state laws. | A fixed amount per slot | Depends on the type of parking, applicable rules and agreement. |
| Club or membership charge | Access to the clubhouse and amenities | One-time or recurring amount, depending on the project's terms | Depends on whether the charge is compulsory and the terms mentioned in the agreement. |
| Other development charges | May include External Development Charges (EDC), Infrastructure Development Charges (IDC) and other applicable project-related charges. | Per sq ft or a fixed sum | Depends on the applicable approvals, regulations and payment terms. |
Frequently Asked QuestionsFAQs
PLC is generally charged when a unit qualifies for a preferential location under the project's pricing terms. Ask the builder to explain the feature, calculation and contractual basis before agreeing to the charge.
No. Builders may start floor rise charges above a specified base floor. The rate and the floors to which it applies should be mentioned in the project's cost sheet or payment terms.
For an under-construction residential apartment, GST may apply to the total consideration, including applicable PLC and other charges forming part of the construction service. The applicable rate depends on the project category and tax rules. GST is generally not payable on the sale of a completed property where the entire consideration is received after the completion certificate or first occupation, as applicable. Confirm the tax treatment with the builder or a tax professional.
A builder should not impose arbitrary charges outside the agreed terms. However, the agreement may provide for applicable taxes, statutory charges, or specified adjustments. Review the payment schedule and additional-charge clauses before signing.
Completed apartments may not have separate floor rise or PLC charges listed in the same way as under-construction projects. However, the asking price may already reflect the floor, view and parking advantages. For resale properties, these factors may influence the seller's asking price. Always check the cost breakup before buying.
Refunds depend on the nature of the parking charge, the booking terms, the buyer agreement and applicable laws. Check the refund and cancellation clauses before paying.
Disclaimer: The information presented by TOI Homes, part of The Times of India Group, is for general informational purposes only and does not constitute financial, legal, or investment advice. All data and insights are based on sources believed to be reliable but are not guaranteed for accuracy or completeness and are subject to change due to market conditions. The developer and associated entities are not liable for decisions made based on this information. Real estate investments involve risks, and buyers are advised to conduct independent due diligence and consult certified advisors before investing. TOI Homes does not endorse or promote any specific property or developer unless explicitly stated.
