Understanding PLC, FRC, and BSP in Real Estate: A Complete Guide

When purchasing property, terms like Base Selling Price (BSP), Preferential Location Charges (PLC), and Floor Rise Charges (FRC) are critical to understanding the final cost. These charges often increase the property price beyond its basic value, making it essential for buyers to understand their implications.


What is BSP (Base Selling Price)?

The Base Selling Price (BSP) is the foundational cost of a property, typically expressed in terms of price per square foot. This cost excludes additional charges like PLC, FRC, maintenance fees, parking charges, and taxes.

Example:

  • Property size: 1,200 sq. ft.
  • BSP: ₹5,000 per sq. ft.
  • Base cost = 1,200 × 5,000 = ₹60,00,000

However, the final cost often surpasses this due to add-ons like PLC and FRC.


What is PLC (Preferential Location Charges)?

PLC refers to the additional cost imposed on properties located in more desirable areas within a project. These could include:

  • Scenic views: Apartments overlooking parks, lakes, or cityscapes.
  • Proximity benefits: Units near the main entrance, clubhouses, or key amenities.
  • Corner properties: Offering better ventilation, lighting, and privacy.

Developers justify PLC as a premium for the unique advantages associated with such locations. For instance, a lake-facing apartment may offer a serene view, making it more appealing than one facing a parking lot.

PLC is a premium charge for properties in desirable locations within a project. It reflects the added value due to superior positioning, scenic views, or convenience.

Types of PLC:

  1. View-Based PLC: Charged for units facing parks, lakes, sea views, or open landscapes.
  2. Accessibility-Based PLC: Applies to units near amenities like clubhouses, swimming pools, or entrance gates.
  3. Corner Units: Properties located at corners often offer better ventilation and privacy.
  4. Direction-Based PLC: Charges applied to homes with favorable orientations, such as east-facing units in Vastu-compliant projects.

Impact of PLC on Property Costs:

PLC significantly increases the cost of a property. For example:

  • Apartment size: 1,000 sq. ft.
  • PLC for park-facing view: ₹200 per sq. ft.
  • PLC Cost = 1,000 × 200 = ₹2,00,000

What is FRC (Floor Rise Charges)?

FRC refers to the incremental cost levied as you move higher in a building. Typically, developers charge a fixed amount per floor. Higher floors are often considered more desirable because of:

  • Better views
  • Reduced noise and pollution
  • Improved ventilation and natural light

However, some buyers may prefer lower floors due to ease of access, particularly in emergencies or for older residents.

FRC is an incremental cost levied on properties as their floor level increases. Typically, higher floors command a premium due to better views, ventilation, and reduced noise.

FRC Calculation:

  • Property size: 1,000 sq. ft.
  • FRC rate: ₹25 per sq. ft. per floor above the 5th floor.
  • Floor level: 10th floor.
  • FRC Cost = (10 – 5) × 1,000 × 25 = ₹1,25,000

Also read our detailed article Additional Charges When Buying a Residential Property, that the developers may charge.

Legal Framework Around PLC and FRC

  1. Transparency in Pricing:
    Under RERA (Real Estate Regulatory Authority), developers must disclose all charges, including BSP, PLC, and FRC, to avoid disputes.
  2. Standardization:
    RERA mandates that charges like PLC and FRC be clearly mentioned in the sale agreement, ensuring buyers are fully informed.
  3. Negotiability:
    While PLC and FRC are generally non-negotiable, buyers can request waivers or discounts, especially during pre-launch or inventory clearance sales.
  4. Refunds and Disputes:
  • If a buyer cancels the booking, PLC/FRC charges are often non-refundable unless specified in the agreement.
  • Disputes related to these charges can be addressed in RERA courts.

How PLC and FRC Affect Buyers

  • Affordability: These charges can make properties significantly costlier, impacting affordability for middle-income buyers.
  • Lifestyle Choices: Buyers must weigh whether a scenic view or higher floor is worth the premium.
  • Market Comparisons: Higher PLC or FRC rates may push buyers towards competitors with lower add-ons.

Pro Tips for Buyers

  1. Ask for a Detailed Cost Sheet: Ensure the builder provides a breakdown of BSP, PLC, FRC, and other charges.
  2. Negotiate Early: Developers may waive PLC or FRC during initial booking phases.
  3. Focus on Long-Term Value: Analyze whether the benefits of a premium location or floor justify the extra cost.
  4. Check Legal Compliance: Verify if the project is RERA-registered and charges are documented in the agreement.

Final Thoughts

Understanding terms like BSP, PLC, and FRC is crucial for making informed real estate decisions. These charges reflect added value but can significantly inflate the total property cost. Buyers should balance their preferences with financial considerations and always ensure transparency in transactions.

By staying informed and vigilant, you can secure a property that not only fits your budget but also aligns with your aspirations.


References:

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