Things to Check Before Buying Under-construction Property

While evaluating things to check before buying under-construction property in India, thorough checks on legal approvals, builder credibility, payment plans, and timely delivery ensure a secure, profitable, and hassle-free investment.

Purchasing an under-construction property offers many benefits, such as affordability and potential appreciation. However, to ensure a wise investment, certain things to check before buying under-construction property must be thoroughly evaluated.

While exploring options, it is essential to check for the builder’s reputation, RERA registration, and project approvals. Additionally, review the construction timeline and quality of materials being used to avoid future discrepancies. Financial aspects, such as payment schedules, bank approvals, and home loan eligibility, also demand careful consideration.

By focusing on these things to check before buying under-construction property, you can minimise risks and secure a beneficial deal. In this blog, you will discover a comprehensive checklist that will help you take an informed decision.

12 Things to Check Before Buying Under-Construction Property in India

Buying an under-construction property requires diligent checks. From verifying RERA registration to inspecting essential documents, the 12 factors described below can help you take informed decisions while buying under-construction property.

1. Verify RERA Registration

   One of the most important things to check before buying under-construction property in India is the developer’s RERA registration. Verifying this ensures that the project meets legal requirements, follows ethical practices, and adheres to promised timelines.

   Visit the official RERA website of the respective state, and enter the project’s name or registration number provided by the builder. Review details such as project approvals, land title status, construction progress, and other updates.

2. Check the Builder-Buyer Agreement

   When considering things to check before buying under-construction property, the builder-buyer agreement is an essential document that must be scrutinised thoroughly. This legally binding contract outlines the terms and conditions of the sale – including the payment schedule, construction timelines, possession date, and penalties for delays.

   Ensuring that all clauses are transparent and in line with your expectations can help avoid disputes in the future. Pay special attention to the builder-buyer agreement clauses regarding project delays, refund policies, and quality standards.

3. Check Developer’s Credibility

   When evaluating things to check before buying under-construction property, the developer’s credibility plays a pivotal role in determining the reliability of the project. Developer credibility can significantly impact project quality, adherence to timelines, and overall buyer satisfaction. Ensuring a thorough background check is a vital step in under-construction property verification.

   Research the developer’s track record, including their completed projects and delivery timelines. Review whether there is any history of legal disputes, regulatory non-compliance, or customer grievances. It is also important to confirm that the builder is registered with RERA, as this compliance indicates adherence to legal standards.

4. Verify Approvals and Clearances

   Among the essential steps for a successful purchase, verifying the project’s legal approvals and clearances stands out as one of the top things to check before buying under-construction property. Begin by ensuring that all real estate legal approvals are in place – for example, land title, commencement certificate, layout approval, and building plan approval.

   These documents verify that the land is free of legal disputes and the construction aligns with the sanctioned plan. Also, it is important to confirm local authority approvals from municipal corporations, electricity boards, and water supply departments.

5. Review Construction Progress and Quality

   One of the top things to check before buying under-construction property is the project’s construction progress and quality. Start by visiting the site regularly to observe ongoing construction and assess the materials being used – such as cement, steel, and fittings.

   Pay close attention to the finishing quality of walls, flooring, and electrical installations. Ensuring consistent construction quality not only secures your investment, but also contributes to long-term satisfaction with the property.

6. Understand the Payment Plans

   Among the essential things to check before buying under-construction property is understanding the available payment plans. The construction-linked payment plan is the most common option offered by developers. It requires you to pay instalments based on specific milestones, such as the completion of foundation work, brickwork, or internal finishing.

   This plan reduces financial risk, as your payments are linked to the project’s progress. An informed choice of payment plan will provide better cash flow management and greater security for your investment.

7. Check Bank Loan Approvals

   One of the key things to check before buying under-construction property, is whether the project has secured bank loan approvals. Banks conduct rigorous due diligence before approving a project, so a project with home loan approvals from reputable banks indicates compliance with legal and construction norms.

   To check loan eligibility for under-construction properties, confirm which banks have approved the project for home loans. A builder with multiple bank tie-ups is often a safer choice, as it suggests that the project meets financial and regulatory standards.

8. Evaluate Pricing and Hidden Charges

   Evaluating the total cost of the property goes beyond just the base price – buyers must also account for add-ons like GST, registration fees, stamp duty, maintenance deposits, interior decor, property tax, increased EMIs due to changes in floating interest rates, and more. This comprehensive cost analysis ensures that there are no surprises later in the purchase process.

   While comparing properties, review the per-square-foot rate, floor rise charges, car parking fees, and preferential location charges (PLC) to understand the actual cost of the unit. As part of the things to check before buying under-construction property, ensure that the developer provides a transparent breakdown of the total cost.

9. Verify Future Infrastructure Development

   Evaluating upcoming facilities such as roads, metro lines, schools, colleges, hospitals, malls, multiplexes, and commercial hubs can have a significant impact on the property’s value and your lifestyle.

   Homebuyers who consider this factor often secure better returns on their investments over time. Check for projects like widening of roads, upcoming metro stations, or proposed flyovers. Confirming such future infrastructure developments will help you gauge the potential for appreciation and improved connectivity.

   Additionally, reviewing these planned developments ensures that you invest in a location that will cater to your needs in the long run, making it one of the strategic things to check before buying under-construction property.

10. Look Into the Resale Value

    While buying for end-use is often the primary objective, considering under-construction property resale helps maximise your long-term financial gains. The resale value depends on many factors, such as location, developer reputation, construction quality, and surrounding infrastructure.

    Additionally, construction quality plays a vital role in ensuring a good resale price, as buyers often prefer well-built properties with established credibility. During your decision-making, remember that estimating the property’s resale value is among the top things to check before buying under-construction property.

11. Ensure Timely Delivery

    Delays in possession can disrupt your plans, increase financial burdens, and affect your overall experience as a homeowner. As such, this factor demands thorough attention when you are buying under-construction property.

    Begin by checking the developer’s past record on project completion and possession timelines. You can also verify the expected delivery date through the RERA website, as all registered projects must provide accurate timelines.

    This protects your interests and holds the developer accountable for timely handover. You can secure peace of mind by making property possession date a priority among the things to check before buying under-construction property.

12. Inspect All Necessary Documents

    This is the last important step in the list of things to check before buying under-construction property. Start with title deed verification to confirm the seller’s ownership and that the land is free from disputes. Next, review the sanctioned building plan, which ensures the project is approved by local authorities.

    An encumbrance certificate is essential to confirm that the property is free of any financial liabilities, such as unpaid loans. Check for environmental clearances to ensure the project adheres to environmental norms and has obtained necessary approvals.

    Finally, an occupancy certificate (OC) will be needed upon completion, certifying that the building complies with safety & regulatory standards, and is safe to occupy. Making documentation a priority among the things to check before buying under-construction property guarantees a safer investment and a smoother transaction – securing your interests as a buyer.

Conclusion

In a nutshell, buying an under-construction property in India offers numerous benefits. However, thorough due diligence is vital for a safe investment. From verifying RERA registration and builder credibility to checking legal approvals, payment plans, and future infrastructure development, each factor ensures transparency and security.

Additionally, reviewing the property’s resale potential, timely delivery, and all necessary documents minimises risks. By focusing on these things to check before buying under-construction property, you can take an informed decision, protect your investment, and enjoy a satisfying homeownership experience aligned with your financial and lifestyle goals.

FAQs

1. How can I verify an under-construction property?

You can verify an under-construction property by checking its RERA registration on the respective state’s RERA website.

2. How do I verify a property before buying?

You can verify a property before buying, by checking the title deed for ownership, RERA registration for regulatory compliance, building approvals for legal construction, environmental clearances for sustainability, and any encumbrances for financial liabilities. If you want to ensure the property is free from disputes, explore this blog to learn the things to check before buying under-construction property, and then consult a legal expert.

3. How do I invest in an under-construction property?

You can invest in an under- construction property by researching the developer’s credibility, exploring payment plan options like construction-linked plans, conducting legal checks like title deed and RERA registration verification, completing the down payment, and taking a home loan.

4. How can I check if a flat is legal or not?

You can check if a flat is legal or not, by confirming its RERA registration, reviewing the title deed for ownership, checking the sanctioned building plan, and ensuring all required government approvals and clearances are in place.

5. Can I sell an under-construction flat before possession?

Yes, you can sell an under-construction flat before possession, but it depends on the terms outlined in your builder-buyer agreement. Some developers may impose restrictions, and you might need to pay transfer fees to complete the sale.

6. How can I claim ownership of an under-construction property?

You can claim ownership of an under-construction property once all payments are completed, the builder-buyer agreement is signed, and the possession certificate or occupancy certificate is issued upon project completion.

7. How do I determine the correct value of my property?

You can determine the correct value of your property by comparing prices of similar properties in the locality, checking with other developers, and hiring real estate consultants or certified property appraisers to get a professional valuation.

8. How do auditors verify land and building?

Auditors verify land and buildings by reviewing property documents, ownership records, & approved building plans; and conducting physical inspections to confirm the asset’s existence, compliance, and condition.

9. What does 'verification' mean in construction?

In construction, ‘verification’ means the process of checking whether the building complies with approved plans, adheres to legal guidelines, meets quality standards, and satisfies regulatory requirements before being deemed fit for occupancy.

In construction, ‘verification’ means the process of checking whether the building complies with approved plans, adheres to legal guidelines, meets quality standards, and satisfies regulatory requirements before being deemed fit for occupancy. 10. How do I judge the value of an under-construction property?

You can judge the value of an under-construction property using its location, developer reputation, project amenities, market demand, future infrastructure development, and the overall real estate market trends. This is one of the most important things to check before buying under-construction property.