7 Things to check before buying an under-construction property

under-construction property

The Indian government is taking initiatives to protect home buyers against fraud. This has opened up the chance to invest in under-construction projects without fear of insolvency. The launch of new projects had made buying an under-construction home a lucrative deal.

However, the most significant stake buyers take while investing in an under-construction property is time. There might be delays in the construction work, which is pretty uncertain. But, if you join with reputed builders and real estate agents, then you get immense flexibility. You get leverage in payment plans, schemes, customizing interiors and other attractive benefits.

But, take your time before investing and closely examine the risk factors. Every construction project has its own set of advantages and disadvantages.

So, let’s know the facts that you must check before investing in ongoing construction work.

1. Check the registration of the property

After the bill was passed for the Real Estate (Regulation and Development) Act in 2016 by the Parliament of India, every builder must register their property. Be it under construction, ready-to-buy property, or commercial or residential property, every detail is available for the buyer. 

This provides complete transparency about the real estate agent and the builders. You, as a buyer, have the right to verify the information and documents associated with the project. This also dismisses the hassle created during the post-sale issue.

2. Verify the Builder-buyer agreement

When investing in an under-construction project, there must be a builder-buyer agreement. Go through it carefully, read between the lines and understand every term and clause. Note if the completion time is mentioned or is it uncertain! 

Always sign the contract after the builder mentions a tentative possession date in the agreement. Do not leave any gaps and consider whether all the promised facilities are stated in the document. 

Further, invest in construction sites that have been 50% to 75% complete, and you can see signs of progress. This will ensure that you do not have to wait much to get the keys to your new home.

3. Check the credibility of the builder

Is the builder trustworthy? A fraudulent builder can also bring massive losses and legal offenses against the buyers. So, always opt for reputed and recommended builders who have been in the real estate sector for years. Along with this, it is also necessary to check whether the builder is financially stable. Otherwise, the construction work might stop mid-way, and all your investment might go in vain. 

Check the background of the builder and avoid the ones who have been involved in legal cases or have multiple consumer complaints. A reliable real estate developer would provide you with high-end flats without delay.

4. Changes in building plan

According to the RERA Act and the guidelines, any alteration in the construction plan can be put forward only after the buyer’s consent. So, before signing the agreement and investing in the project, always go through print details. 

Check if there is any chance of change in the building plan. If the builder wants to change the plan or layout of the under-construction home, then there has to be a valid reason, and at least 2/3 of buyers must approve the revised plan. If these conditions are satisfied, only then the builder can proceed.

5. Inspect the price and payment modes

Usually, under-construction projects come at a relatively low price in comparison to ready-to-move-in homes. So, look for construction projects that are under sale; they will help you save a lot. Further, you also get the leverage not to shift at the earliest. You get enough time to gain stability both mentally and financially before the shift. 

You also get to compare the prices and get a better deal. Usually, the biggest advantage comes in the form of paying through installments. You need to pay around 5% of the value of the home and the remaining over the years. The time usually depends on how quickly the construction work is going to be completed. This way, you get flexibility from the financial burden.

6. Check if the site is applicable for bank loans

Are you planning to buy under-construction property on loan? Go for projects that the bank approves. Thus, the bank can evaluate the project thoroughly and get the details about the developer before sanctioning the loan. This will ensure that both the parties, the lender and the buyer, do not face any hassle in the future. 

The bank also checks that the realtor does not get into default, and this helps to get the loan quickly. Further, the bank can file a court case against the realtor if the project is not complete within the stipulated time. 

7. Checklist for documents

You must evaluate the property’s land title and scrutinize the documents related to the ownership. Go through the mortgage rights and verify if there are any obligations as an owner. 

  • Check the land use certificate and whether the construction is being done in the residential zone. If there has been a conversion of the land, then check the papers. 
  • To continue with any construction project, it is necessary to get clearance certificates. So, verify whether the property has a certificate of commencement. After complete inspection and scrutinization of the builders’ license and permission to build the building, the certificate is issued. 
  • You can also ask for the building plan for complete satisfaction. Check the master plan of the areas and compare it with the region’s planning development. 
  • Other than this, the project site needs a few common NOC, such as a certificate from the pollution board, Environmental clearance, and approval from the fire department. Note whether all these documents are in order.


Once you’re done with the paperwork, visit the project site and get a complete understanding of the under-construction property. Check if the constructors are installing all the promised facilities and whether they are using high-quality materials. 

Besides this, you can also compare the site area and look for possibilities for subsequent construction. Also, check for future opportunities, transport facilities, and amenities such as hospitals, schools, banks, markets, etc. 

Along with that, you must also check the local environment and the nearby construction projects. So, now that you have answers to all your doubts, you can invest in an under-construction project with Srijan Realty. With them, you are just one step away from your dream house.

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