Things to Check Before Buying an Under-Construction Property
Introduction
Investing in an under-construction property can be a great decision, offering lower prices and better customization options. However, many homebuyers face challenges like project delays, legal issues, and hidden charges. To avoid these pitfalls, it is essential to conduct thorough due diligence before making a purchase. This guide outlines the key factors to check before buying an under-construction property.
1. Verify RERA Registration
- Ensure the project is registered under RERA (Real Estate Regulatory Authority).
- Check the builder’s past projects, financial status, and delivery record on MahaRERA.
- A RERA-registered project ensures transparency, legal compliance, and accountability.
2. Check Builder Reputation and Credibility
- Research the builder’s previous projects, delivery timelines, and construction quality.
- Read online reviews and feedback from existing homebuyers.
- Visit completed projects to assess construction standards.
3. Review Legal Approvals and Documentation
- Confirm that the project has all necessary approvals, including:
- Commencement Certificate (CC)
- Intimation of Disapproval (IOD)
- Environmental Clearance
- Municipal Corporation Approvals
- Consult a legal expert to verify property documents.
4. Understand the Payment Plan and Home Loan Approvals
- Check if the project is approved by reputed banks for home loans.
- Compare different payment plans such as:
- Construction-linked plan – Pay based on construction progress.
- Possession-linked plan – Pay a major portion on possession.
- Subvention scheme – Pay only EMI after possession.
5. Be Aware of Hidden Charges
- Some common hidden costs include:
- GST (5%) on under-construction properties.
- Preferential Location Charges (PLC) for premium views or floor preferences.
- Development and Maintenance Charges payable in advance.
- Parking Charges that may not be included in the base price.
6. Evaluate Construction Progress and Delivery Timeline
- Visit the site to check the actual progress of construction.
- Compare the builder’s timeline with past project deliveries.
- Ensure there is a penalty clause for delays in the agreement.
7. Check Infrastructure and Connectivity
- Evaluate the location for road connectivity, metro, and upcoming infrastructure.
- Proximity to schools, hospitals, shopping malls, and commercial hubs increases property value.
- Look for future growth potential in the area.
8. Inspect Amenities and Specifications
- Ensure promised amenities like clubhouses, parking, security, power backup, and green spaces are included in the final agreement.
- Check the quality of materials and fittings used in the construction.
9. Assess Resale and Rental Potential
- Consider future resale value and rental demand before investing.
- Check the price trends in the locality and upcoming developments.
10. Verify Possession Date and Penalty Clauses
- Ensure the builder provides a written commitment on the possession date.
- Check for compensation clauses in case of project delays.
Conclusion
Buying an under-construction property requires careful research and verification. By checking legal approvals, builder reputation, financial aspects, and infrastructure developments, you can make a secure and profitable investment.
For more details on property agreements, check our Sales Agreement Guide (internal link). Also, explore expert real estate insights on Housing.com (external link).Need Expert Guidance?
Need Expert Guidance?
For expert advice on RERA-approved projects in Mumbai, contact Manish M. Mishra at Sheetal Property.
📞 Call: +91-8422999725
🌐 Visit: www.sheetalproperties.com
