An Expression of Interest (EOI) is a formal way for a buyer to show serious interest in purchasing a property, without making a legally binding commitment. It is commonly used in real estate, especially during new project launches, high-demand properties, or commercial sales, where the seller or builder wants to understand buyer interest before proceeding with official bookings.

In this process, the interested buyer submits an EOI form along with a token amount, which usually ranges from ?25,000 to ?1,00,000. This form typically includes the buyer's personal details, the type of property they are interested in, and their preferred unit, floor, or view, along with an indicative offer price. It helps the builder gauge how many genuine buyers are in the market and which units are most in demand.

However, it is important to note that an EOI is not legally binding, meaning the buyer or seller can withdraw from the process at any time without legal penalties. Most developers offer a full refund of the token advance if the buyer decides not to proceed. For buyers, the EOI gives them priority access to unit selection, possible early-bird pricing, and first-mover advantage.

For builders, it helps in pricing decisions, inventory planning, and reducing no-shows during official booking. Once the builder reviews all EOIs, they typically invite the shortlisted or early applicants to move forward with the actual booking, agreement signing, and payment process. The EOI stage is very useful for both parties to express genuine interest and move forward confidently in a transparent way, especially in a fast-moving real estate market like Chennai, Bengaluru, or Mumbai.

What is an EOI?

An Expression of Interest (EOI) is a non-binding formal document that shows a buyer’s genuine interest in purchasing a property.
It is often used before the official booking or registration happens.

In simple terms:
 “I like this property. I may want to buy it. Here’s a basic offer and some initial money to reserve my interest.”

When is EOI Used in Real Estate?

EOI is commonly used in:

 New project launches (apartments, villas)
 High-demand or limited-availability properties
 Commercial real estate deals
 Land acquisition and bidding
 Government property auctions

What Does an EOI Include?

A typical EOI form includes:

Benefits of EOI (for Buyer & Seller)

 For Buyers:

• Secures a spot or priority for unit selection

• Shows interest without full commitment

• Helps negotiate or lock-in early pricing

• Refundable token if deal doesn’t proceed

 For Developers/Sellers:

• Understands market demand

• Plans project pricing based on interest

• Shortlist serious buyers

• Reduces the risk of fake enquiries

How Does EOI Work? (Step-by-Step)

Buyer Side:

1. Sees a pre-launch or EOI ad from builder

2. Fills EOI form with personal details + preferences

3. Pays token amount (online or cheque)

4. Waits for allotment or booking call

Developer Side:

1. Collects multiple EOIs

2. Studies interest trends (unit types, floors, budget)

3. Finalizes price/layout based on demand

4. Contact top EOIs for official booking

Is EOI Legally Binding?

No.
An EOI is not a contract. It does not legally force you to buy or sell.
However, it builds trust and priority access.

The token advance is usually refundable, unless mentioned otherwise.

Things to Keep in Mind

1. Always read the terms – Is token refundable? What’s the next step?

2. Keep proof of token transfer and EOI form copy.

3. EOI is not booking – Booking comes after allotment + agreement.

4. Speak to the developer before submitting EOI if in doubt.

 Example (Real Life Scenario)

A builder in Thoraipakkam, Chennai launches a premium apartment tower.
They accept EOIs for 2 weeks.

• Buyer A pays ?50,000 EOI and expresses interest in 3rd-floor east-facing 2BHK.

• Developer receives 200 EOIs for 150 units.

• Based on interest, the price is slightly revised upward.

• Buyer A is called first for booking due to early EOI.

If Buyer A doesn’t want to proceed, the ?50,000 is refunded.

Conculsion

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