Buying an Under-Construction Flat in India? Step-by-Step Guide, Legal Checks, and Safety Measures Every Buyer Must Know & Buyer’s Do’s & Don’ts

Introduction

Buying your dream home is one of the biggest financial and emotional decisions of life. Many buyers, especially first-time buyers, are drawn towards under-construction flats or apartments because they are often cheaper than ready-to-move-in properties and come with flexible payment options. However, under-construction properties also involve higher risks, such as project delays, legal disputes, or even fraud.

As a buyer, knowing the legal process, safety measures, and essential do’s & don’ts can help you secure your investment and avoid unnecessary stress.

At KHA Advocates, we assist property buyers with end-to-end legal support, from due diligence to registration, ensuring you buy your home with complete confidence.

Step-by-Step Legal Process of Buying an Under-Construction Flat

1. Check RERA Registration

• Visit your state’s RERA (Real Estate Regulatory Authority) portal.

• Verify whether the project is registered.

• Check the builder’s past projects, timelines, and compliance status.

  👉 Why it matters: Only RERA-approved projects provide legal safeguards for buyers.

2. Verify Builder’s Title & Approvals

• Confirm the builder has clear ownership or development rights over the land.

• Check approvals from local authorities (municipality, fire, environmental clearance, etc.).

  👉 Why it matters: Buying from a builder without proper approvals can lead to cancellation of the project.

3. Examine the Builder-Buyer Agreement

• Carefully review clauses on possession date, construction linked payments, cancellation, and refund policies.

• Look for hidden charges (maintenance, parking, club membership, etc.).

  👉 Why it matters: This agreement defines your rights – a lawyer can help negotiate unfavorable terms.

4. Payment & Home Loan Procedure

• Payments should follow the construction-linked plan and not exceed 10% before agreement registration (as per RERA).

• For home loans, banks conduct their due diligence – but don’t rely solely on bank approvals.

5. Registration of Agreement for Sale

• Legally register your agreement at the Sub-Registrar’s office.

• Pay applicable stamp duty & registration charges.

6. Possession & Occupancy Certificate

• Before possession, check for Occupancy Certificate (OC) and Completion Certificate (CC).

• Without these, the property is legally incomplete.

Safety Measures Before Booking an Under-Construction Flat

✅ Check Builder’s Reputation – Past delays, litigation, financial standing.

✅ Verify Carpet Area – RERA mandates selling on carpet area, not super built-up.

✅ Escrow Account Compliance – Ensure builder deposits 70% of buyer’s funds in RERA account.

✅ Timely Updates – RERA requires builders to provide construction progress updates online.

✅ Legal Scrutiny of All Documents – Hire a property lawyer to verify every paper.

Do’s & Don’ts List for Buyers

✅ Do’s:

1. Do verify the project’s RERA registration.

2. Do conduct a legal title check of the land.

3. Do hire a real estate lawyer for document vetting.

4. Do keep all receipts, agreements, and builder communication in writing.

5. Do check for hidden charges like GST, maintenance, parking.

❌ Don’ts:

1. Don’t rely solely on the builder’s brochure or promises.

2. Don’t pay more than 10% of the cost before agreement registration.

3. Don’t skip checking OC & CC before taking possession.

4. Don’t ignore the fine print in the builder-buyer agreement.

5. Don’t book based only on verbal assurances or flashy advertisements.

Case Study: Buyers Saved by Legal Due Diligence

A group of buyers in Kolkata booked flats in an under-construction project that was heavily advertised. Our team at KHA Advocates was approached for due diligence. Upon inspection, we found that:

• The land title had a pending litigation.

• The builder had failed to secure environmental clearance.

By acting early, the buyers avoided investing in a risky project and redirected their funds into a RERA-compliant development.

👉 Lesson: A small investment in legal checks can save you from losing your life savings.

Why You Need a Real Estate Lawyer for Under-Construction Properties

• Contract Protection – Lawyers help negotiate builder-buyer agreements to protect your interests.

  
  

• Fraud Prevention – Prevents scams by verifying builder credentials and land titles.

  
  

• Compliance Checks – Ensures approvals and sanctions are in place.

  
  

• Dispute Resolution – Quick legal recourse in case of delays or defaults.

  
  

• Peace of Mind – Focus on your dream home while your lawyer safeguards your investment.

Conclusion

Buying an under-construction flat can be rewarding, but it comes with risks that only expert legal guidance can minimize. Don’t let hidden clauses, delayed possession, or fraud turn your dream home into a nightmare.

At KHA Advocates, we specialize in property law and real estate legal services. From document verification to dispute resolution, we ensure that your home-buying journey is secure, transparent, and stress-free.

👉 Build your dream home with confidence – Partner with KHA Advocates today!

📞 Contact Us: +91-9477758885

📧 Email: contact@khaadvocates.in

📍 Location: New Town, Near CC2, Kolkata, West Bengal, India

🌐 Visit: www.khaadvocates.com