Documents to check before buying a flat under construction

Which documents to check before buying a flat under construction?

1. RERA registration and the project's page on the state RERA portal: completion date, approvals, litigation and quarterly updates.
2. Title to the land: title certificate, search report and land records.
3. Development agreement and power of attorney from the landowner, if the builder is not the owner; check they are stamped and, where they authorise sale or development, registered.
4. Approved plans and the commencement certificate.
5. Non-agricultural permission where the land was agricultural.
6. Encumbrances: any project loan and the lender's no-objection for sale.

RERA registration check

Projects above the size threshold must be registered under Section 3 of RERA before they are marketed. Compare the registered plan, carpet area and completion date with what the brochure and agreement say. Differences are a warning sign.

Agreement for sale registration

Under Section 13 of RERA, a builder cannot accept more than 10% of the cost as advance or application fee before executing a registered agreement for sale. Read the agreement for the carpet area, payment linked to construction stages, possession date and the interest payable for delay.

What about GST on a new flat?

Since April 2019, GST on under-construction residential flats is 5% without input tax credit, and 1% for affordable housing as defined. No GST is payable on a completed flat with an occupancy certificate.

Occupation certificate for flat

The occupancy certificate confirms the building was built as approved and is fit to occupy. Do not take possession without it; it also matters for utility connections, society formation and future sale. See RERA complaints if the builder offers possession without it.

What to do next

Get an independent title search before the advance. Our title search and agreement with title search cover this.