Lock In period Explained for properties on under construction.

A lock-in period for properties under construction refers to a period of time during which the buyer of the property is unable to sell the property or transfer ownership before the construction is completed. This is intended to protect the developer from a sudden downturn in the market or a change in the buyer's circumstances, which could lead to the buyer trying to resell the property before the construction is completed, and hence before the market is ready. The lock-in period usually starts from the date of the booking of the property and ends at the date of possession or registration of the property. Like in case of rented properties, the lock-in period can vary depending on the specific purchase agreement, but it is typically between 6 months to 3 years, and can be even more than that. Violation of the lock-in period may result in a penalty, as agreed upon in the purchase agreement.

However, in some cases, the developer may allow the buyer to exit the agreement by paying a penalty, which can be higher than the standard penalty for breaking the lock-in period. It is important to review the terms and conditions of the lock-in period before investing in an under-construction property, and to ensure that you understand the implications and whether it's the right choice for you.

You should also consider whether you're comfortable with the risk of being locked into the property during the construction period, and whether you're comfortable with the idea of having to pay a penalty if you need to exit the agreement early. It's a good idea to consult with experts such as real estate lawyer or financial advisor before making any investment decisions.