Complete Checklist for Buying a RERA-Approved Flat in India
Updated Guide
Buying your first flat is one of the largest financial decisions you'll make, and in India it comes with a paper trail that can feel designed to confuse rather than protect you. RERA (the Real Estate Regulation and Development Act) exists specifically to fix that — it forces developers to register projects, escrow buyer payments, and commit to disclosed timelines. This guide walks through exactly what to verify before you sign anything, so you go in with the same information a seasoned buyer would.
Why RERA Verification Comes First
A valid RERA registration means the project's land title, approvals, and sanctioned plan have already been screened by the state regulator, that at least 70% of buyer payments go into an escrow account earmarked for that project's construction (not the developer's other projects or debts), and that you have a formal forum to file complaints if possession is delayed. Every state runs its own RERA portal (e.g. MahaRERA, K-RERA, UP-RERA) — search the project name or registration number there before paying anything, and cross-check that the promoter name on the certificate matches who you're actually paying.
Legal Documents to Verify
RERA Registration Certificate
Confirms the project is registered with the state's Real Estate Regulatory Authority and legally allowed to sell under-construction units.
Title Deed
Proves the seller/developer actually owns the land, free of competing claims.
Encumbrance Certificate
Shows the property is free of unpaid loans, mortgages, or legal disputes over a specified period (typically 13–30 years).
Occupancy Certificate (OC)
Confirms the building was constructed per the approved plan and is legally fit to be occupied. Never move in without one.
Approved Building Plan
Verifies the sanctioned layout matches what's actually being built or sold — mismatches are a common red flag.
Khata / Mutation Certificate
Records the property in municipal records under the current owner's name, required for utility connections and resale.
Hidden Costs Beyond the Quoted Price
The price per sq.ft. quoted by a developer is rarely the full cost of ownership. Budget for these on top of the base price:
| Cost | Typical Range | Note |
|---|---|---|
| Stamp Duty | 3% – 7% of property value | Varies by state; higher for resale in some states. |
| Registration Fee | 1% of property value (typically capped) | Paid at the sub-registrar's office. |
| GST | 1% (affordable) / 5% (other, under-construction) | Not applicable on ready-to-move or resale flats with OC. |
| Maintenance Deposit | ₹20,000 – ₹1,00,000+ | One-time advance maintenance corpus, varies by developer. |
| Parking / Club Membership | ₹1 – 5 lakh | Often quoted separately from the base unit price. |
| Legal & Loan Processing | 0.5% – 1% of loan amount | Covers lawyer verification fees and bank processing charges. |
Home Loan Eligibility — Quick Action Steps
- Check your credit score (CIBIL) before applying — anything below 700 will limit your loan offers.
- Confirm the project is on your lender's approved-project list; this speeds up disbursement and sometimes gets better rates.
- Keep your EMI-to-income ratio under 40% of take-home pay — most banks cap eligibility around this line.
- Get a sanction letter before you commit to a booking amount, not after.
- For under-construction flats, confirm disbursement is milestone-linked, not a lump sum upfront.
Common Developer Red Flags
- No RERA registration number displayed in ads, brochures, or the agreement for sale.
- Possession date pushed back repeatedly with no penalty clause enforced.
- Carpet area, built-up area, and super built-up area not clearly distinguished in the agreement.
- Developer asks for payment in cash or to a personal account instead of the project's RERA-registered escrow account.
- No occupancy certificate at the time of possession — you're being asked to move in 'provisionally.'
- Reluctance to share the approved building plan or past project track record on request.
Frequently Asked Questions
Is it safe to buy a flat that isn't RERA registered?
In most Indian states, any project with 8+ units or built-up area over 500 sq.m. must be RERA registered before it can be advertised or sold. If a developer can't produce a RERA ID, that alone is reason to walk away — you lose RERA's escrow protections, delay penalties, and defect-liability recourse.
What is the difference between carpet area and super built-up area?
Carpet area is the actual usable floor space inside your walls. Built-up area adds wall thickness and balconies. Super built-up area further adds a share of common areas (lobbies, stairwells). RERA now mandates that developers quote price based on carpet area — always confirm which figure is being used in your agreement.
Can I get a home loan before the project has an Occupancy Certificate?
Yes, for under-construction projects, banks disburse home loans in stages tied to construction milestones, provided the project itself is RERA-registered and the bank has approved the project. The final disbursement and possession, however, should not happen without the OC.