Checklist for Buying an Under-Construction Property in India (2025)
Buying an under construction property in India can offer attractive pricing, customization, and long-term investment benefits. However, it also comes with risks such as project delays, hidden charges, or legal complications. A meticulous checklist can help buyers make informed decisions, avoid pitfalls, and protect their investment.

1. Verify Legal Approvals and Documentation
✅ Key Documents to Check:

• Title Deed: Confirms the seller's legal ownership of the land.
• RERA Registration: Ensure the project is registered on the RERA
• Building Plan Approval: Sanctioned plan from municipal authorities.
• Commencement Certificate (CC): Authorization to begin construction.
• Intimation of Disapproval (IOD): Regulatory compliance approvals.
• Environmental Clearance (EC): For large developments (usually over 20,000 sq. m.).
• Land Use Certificate: Confirms the land is approved for residential use.

2. Check Developer Credibility

✅ Key Points to Research:

• Developer’s Track Record: Past projects, delivery timelines, quality.
• Financial Standing: Solvency and funding sources.
• Customer Reviews: Online forums, Google reviews, and social media.
• Litigation History: Any ongoing or past legal disputes.
• RERA Violations: Check on the RERA website for any reported issues.

3. Construction Quality & Site Inspection

✅ What to Look for:

• Construction Materials: Ask for specifications and brand of cement, tiles, wiring.
• Model Flat Inspection: Visit the sample unit to assess quality.
• On-Site Progress: Regular site visits help you assess transparency and speed.

*Tip: Take a civil engineer or architect along for one visit to inspect the build quality and layout.

4. Project Timeline & Possession Date
✅ Confirm:

• Scheduled Completion Date: Cross-check RERA and agreement details.
• Grace Period Clause: Understand how much delay is permissible contractually.

Penalty for Delay: Ensure the agreement includes compensation clauses (as per RERA norms).
5. Agreement to Sale and Builder-Buyer Agreement
✅ Ensure It Includes:

• Total sale consideration (cost breakup: base price, GST, club charges, etc.)
• Carpet area clearly mentioned (not super built-up area).
• Timeline with milestone-based payment plan.
• Specifications (tiles, doors, fixtures), possession date, and penalties.

Exit clauses, refund terms, transfer charges (if applicable).
*Pro Tip: Hire a property lawyer to vet these agreements before signing.
6. Financial Aspects & Hidden Charges

✅ Key Costs to Account For:

• PLC (Preferential Location Charges)
• Base price + GST (5% for under-construction without subsidy) 
• Clubhouse or amenity charges
• Floor rise charges
• Parking charges (open or covered)
• Maintenance deposit/advance

*Stamp duty and registration charges (usually 6–8%)
*Always ask for an “All-Inclusive” price quotation.

7. Home Loan Eligibility & Bank Approvals
✅ Confirm:

• Is the project approved by leading banks three primary banks: SBI, HDFC, ICICI?
• Does the bank disburse the loan in construction-linked stages?
• Are you eligible based on income and credit score?

8. Location & Connectivity Evaluation
✅ Analyze:

• Proximity to schools, hospitals, offices, markets.
• Upcoming infrastructure (metro, highways, tech parks).
• Water and power supply in the area.
• Neighborhood safety and traffic situation.

9. Post-Possession Responsibilities
✅ Check:

• Society Formation: Will the builder hand over to a residents’ association?
• Defect Liability Period: Builder is responsible for 5 years for structural issues (as per RERA).
• Occupancy Certificate (OC): Must be obtained before moving in.
• Property Tax and Utility Connections: Ensure separate meters and municipal tax records

10. Red Flags to Watch Out For

• Project not listed on RERA.
• Prices that are too good to be true.
• Vague possession timeline.
• No physical site progress.
• No penalty clause for delay.
• Builder refuses to share legal documents.

11.Final Tips

• Never rely only on brochures or verbal promises—everything must be on paper.
• Avoid pre-launch offers unless the project has at least RERA registration.
• Insist on a construction-linked payment plan to reduce financial risk.
• Consider resale value and future infrastructure developments.
• Maintain a file of every receipt, document, and communication.

Buying an under-construction property can be rewarding—if done with caution and research. The key is to verify legality, assess the developer, ensure financial clarity, and understand your rights as a buyer. This checklist can be your trusted guide in ensuring a smooth and safe property purchase journey.