The short answer
A new launch is a home bought directly from the developer, usually in a project that is under construction or newly completed. A resale property is a home bought from its current owner, in a building that is finished and usually lived in.
A new launch gives you a new building, a choice of units, a payment plan spread over construction and RERA's protections, at a price the builder sets and with GST if you pay before completion. A resale gives you a finished home you can inspect, a price you can negotiate with an individual, and no GST, but you must check a longer ownership history, deal with the society's transfer process and usually pay a larger share upfront.
If you want something new, can wait and are buying from a reliable builder, a new launch can suit. If you want certainty, an established neighbourhood and room to negotiate, and you are prepared for the extra document checks, a resale often fits better. Our ready-to-move vs under-construction guide covers the timing side of the same decision.
Pricing and negotiation
A builder sets a price list, often with launch offers for early buyers, and raises it in steps as construction progresses or as units sell. Discounts exist, but they usually come as waived charges, a free parking slot or a payment-plan concession rather than a lower base price, because builders protect the price list for other buyers. Look at the all-in cost: base price plus preferential location charges, parking, club membership, maintenance deposits, GST and stamp duty.
A resale price is a negotiation with an owner whose situation you can learn: a job move, an upgrade, a loan to close. Prices in the same building vary with floor, facing, condition and the seller's urgency. Use evidence: recent registered sale prices in the building or locality, and the government's guideline value (circle rate). A resale home that needs renovation should be priced with that cost taken off.
A resale also comes with costs a new launch may not: brokerage, society transfer charges, renovation, and in some cases arrears that the seller must clear before transfer.
The document chain
For a new launch, the key documents come from the builder and the authorities: the RERA registration, the title of the land as uploaded on the RERA portal, the sanctioned plan and commencement certificate, the registered agreement for sale, and at the end the completion or occupancy certificate and the sale deed or conveyance. You are the first owner of the flat, so there is no flat-level ownership chain to check, but the land title still matters.
For a resale, you are buying the seller's title, so you need the whole chain of ownership. A lawyer typically checks the title chain going back about thirty years: each sale deed, gift deed or inheritance document, and the original builder's agreement or sale deed. Ask for an encumbrance certificate for the same period to see registered mortgages and charges, and the latest property tax and utility receipts.
For a flat in a society, you also need the society's no-objection certificate or confirmation of no dues, the share certificate (in a cooperative housing society) and the transfer process the society follows. Our society transfer NOC guide explains this step. If the seller has a home loan, the lender holds the original documents; the closure, the lender's NOC and the release of originals have to be coordinated with your payment.
Check that what is built matches the approved plan in both cases. Unauthorised enclosures, extra rooms or a terrace converted into a room can affect a loan and become your liability.
Home loans
Lenders apply the Reserve Bank of India's loan-to-value caps to both: up to 90 per cent of the cost for loans up to ₹30 lakh, 80 per cent above ₹30 lakh up to ₹75 lakh, and 75 per cent above that, with stamp duty and registration excluded from the cost except for homes up to ₹10 lakh.
For a new launch in a project the lender has already approved, the loan process is usually straightforward, and disbursement follows construction stages. For a resale, the lender does its own valuation and legal check. If the valuation comes in below the agreed price, the loan is based on the lower figure and you pay the difference. Older buildings can get a shorter maximum loan tenure or a lower loan amount, depending on the lender's view of the building's remaining life.
A resale usually needs a larger upfront payment, because the seller wants the full price at registration, whereas a new launch spreads payments over the construction period. Plan the down payment, stamp duty and registration together.
GST, stamp duty and TDS
GST applies to a new launch bought before the completion certificate: 5 per cent without input tax credit, or 1 per cent for affordable housing (carpet area up to 60 sq m in metropolitan cities or 90 sq m elsewhere, and price up to ₹45 lakh). No GST applies where the full price is paid after the completion certificate or first occupation, whichever is earlier, and no GST applies on a resale from an owner.
Stamp duty and registration fees apply to both, at rates set by your state. In most states, duty is charged on the higher of the agreed price and the guideline value. In some states, including Maharashtra, the agreement for sale of an under-construction flat is itself stamped and registered. Our stamp duty calculator gives your state's rates.
If you buy a resale at a price below the stamp duty value by more than 10 per cent, the shortfall can be taxed as income in your hands and as an extra sale price in the seller's. Ask why a seller is pricing well below the guideline value before you agree.
TDS applies to both: when the price is ₹50 lakh or more, the buyer deducts 1 per cent from each payment to a resident seller, under section 393(1) of the Income-tax Act, 2025 (formerly section 194-IA). If the seller is a non-resident, different and higher deduction rules apply, and you need a tax adviser. Our TDS calculator and TDS guide explain the steps.
Inspection and condition
A resale home can be inspected thoroughly before you commit: seepage, cracks, plumbing, wiring, the condition of windows and doors, water supply, parking and lift maintenance. Visit at different times, talk to neighbours, and read the society's recent minutes for planned repairs and levies. Budget for repairs and any renovation.
A new launch can only be judged from the sample flat, the specification and the builder's earlier projects. Visit a completed project by the same builder and talk to its residents. At possession, inspect the new flat against the specification and record defects; RERA's five-year defect liability applies.
Side by side
Price: new launch — builder's price list, discounts mostly through charges; resale — negotiated with an owner, evidence-based.
Payment: new launch — spread over construction; resale — most of it at registration.
Documents: new launch — RERA record, land title, sanctions, agreement for sale; resale — thirty-year title chain, encumbrance certificate, society NOC and share certificate, seller's loan closure.
Loan: new launch — stage-wise disbursement in a lender-approved project; resale — lender's own valuation, which may come in below the price.
GST: new launch — 5 or 1 per cent before completion; resale — none.
Stamp duty and TDS: both — state stamp duty on the higher of price and guideline value in most states; 1 per cent TDS at ₹50 lakh and above for a resident seller.
Inspection: new launch — sample flat and specification; resale — the actual home.
Protection: new launch — RERA remedies for delay and defects; resale — your own checks and the documents.
Which to choose if…
You want a new building and amenities, and can wait: a new launch from a builder with a delivery record, checked on the RERA portal.
You want to move in soon and know the neighbourhood: a resale.
You want to negotiate hard: a resale, where the seller's circumstances matter.
You want to avoid GST: a resale, or a new flat whose full price is paid after the completion certificate.
You are uncomfortable with long title checks: a new launch, though you still need to check the land title, or a resale with a lawyer you trust to do the title chain.
Common mistakes
Comparing a resale price with a builder's base price without adding GST, parking and club charges to the new launch.
Skipping the thirty-year title check and encumbrance certificate on a resale.
Paying the seller before the seller's lender has confirmed the loan closure and released the original documents.
Forgetting the society's NOC, transfer charges and any unpaid dues.
Forgetting TDS on a resale at ₹50 lakh or more, or applying the resident rate to a non-resident seller.
Agreeing a price far below the guideline value without understanding the tax consequence.
Common questions
Is GST payable on a resale flat?
No. GST does not apply to a sale by an owner of a completed home. It applies only to builder sales before the completion certificate or first occupation.
What documents should I check when buying a resale flat?
The title chain going back about thirty years, an encumbrance certificate, the approved plan and completion or occupancy certificate, property tax receipts, the society NOC and share certificate, and the seller's loan closure letter if there is a loan.
Can I get a home loan for a resale property?
Yes, within the RBI's loan-to-value limits. The lender values the property itself, and older buildings may get a shorter tenure or lower amount.
Is stamp duty different for new and resale homes?
Rates are set by each state. In most states duty is charged on the higher of the agreed price and the guideline value, for new and resale homes alike. The timing can differ, as some states stamp the agreement for sale of an under-construction flat.
Do I deduct TDS when buying a resale flat?
Yes, 1 per cent of each payment when the price is ₹50 lakh or more and the seller is resident, under section 393(1) of the Income-tax Act, 2025. Different rules apply to a non-resident seller.
Is a new launch cheaper than a resale?
Sometimes. Compare the all-in cost, including GST and charges on the new launch and brokerage, transfer charges and repairs on the resale, and add the cost of waiting for possession.
Sources
- Reserve Bank of India directions on housing finance — loan-to-value caps and treatment of stamp duty and registration charges (rbi.org.in); checked 2 October 2026
- Notification No. 11/2017-Central Tax (Rate) as amended from 1 April 2019, and Schedule III, paragraph 5 of the CGST Act, 2017; checked 2 October 2026
- Income-tax Act, 2025, section 393(1) (formerly section 194-IA of the Income-tax Act, 1961), in force from 1 April 2026; checked 2 October 2026
- Real Estate (Regulation and Development) Act, 2016 — sections 4, 13, 14(3) and 18 (indiacode.nic.in); checked 2 October 2026
Last checked 2026-10-02.