Kanpur
Buying a flat is perhaps the largest financial commitment most Indian families make. Yet, thousands of buyers every year fall prey to fraudulent projects, hidden costs, and legal complications—simply because they didn’t know what to look for before signing on the dotted line.
Whether you’re buying your first flat or adding to your property portfolio, knowing what to verify, what to ask, and what to avoid can save you lakhs of rupees and years of legal heartburn.
SquareYards presents 15 critical things to know before buying a flat in India—from RERA compliance and legal due diligence to hidden charges and post-possession pitfalls.
Every residential project with 8+ units must be registered under RERA. Check registration on your state’s RERA portal. Unregistered projects have no legal protection for buyers regarding delivery, refunds, or quality.
Carpet area is the actual usable space inside your flat. Built-up includes walls. Super built-up (or saleable area) includes common amenities. Always negotiate on carpet area—RERA mandates that prices be quoted in carpet area.
Check the developer’s RERA profile for completed projects, ongoing projects, and complaint history. A builder with a strong delivery track record is your biggest risk mitigation.
The flat’s price is just one component. Add: stamp duty (4–7%), registration (1%), GST for UC (5%), society formation charges, maintenance deposit, car parking (₹3–10L), and interior costs.
Verify whether the land is freehold or leasehold. For leasehold (e.g., DDA properties in Delhi, certain Mumbai properties), check lease period and renewal rights. Freehold land is preferable.
Understand construction-linked plan (CLP) vs. time-linked plan (TLP). CLP is safer—you pay when construction milestones are met, not on a calendar schedule. Builders sometimes offer subvention schemes—read terms carefully.
Check all clauses: penalty for delay, forfeiture conditions, escalation charges, super area loading, floor rise charges, and possession conditions. Have a lawyer review before signing.
For ready-to-move flats, the OC is mandatory. It confirms that the building complies with approved plans and is legally fit for habitation. Banks cannot disburse home loans for properties without OC.
Check pre-handover maintenance (charged during construction period) and post-handover maintenance (charged after possession). Society maintenance can range from ₹1–5 per sq.ft. per month.
Compare the brochure layout with the RERA-registered floor plan. Any unauthorized construction or deviation from approved plans is illegal and can affect resale and loan eligibility.
Proximity to metro, expressway, schools, hospitals, and commercial hubs directly affects lifestyle quality and appreciation. Visit the site multiple times at different hours to assess traffic, noise levels, and flooding risk.
Confirm that the project is approved by banks (SBI, HDFC, ICICI). Bank-approved projects have already passed legal and technical verification—this is a strong quality signal.
Confirm through an encumbrance certificate that the land on which the project is built is free from mortgages, legal disputes, and government acquisition notices.
Verify RERA-committed possession date. Under RERA, delayed possession entitles buyers to compensation at SBI MCLR + 2% per annum. Know your rights before signing.
Consider the property’s long-term value: Does it have good rental demand? Is the area on an appreciation trajectory? Is the configuration (1 BHK, 2 BHK, 3 BHK) in high demand? SquareYards’ locality price trends can guide this analysis.
Buying a flat without due diligence is the most expensive mistake you can make. These 15 critical checks will help you make an informed, legally safe, and financially sound property purchase.
SquareYards lists only verified, RERA-registered properties and provides end-to-end buyer support—from shortlisting to registration. Explore flats for sale across India’s top cities on SquareYards.
RERA registration is the single most important check. It ensures the project is legally registered, the builder is accountable, and your investment is protected by regulatory oversight. Always verify on your state’s RERA portal.
Beyond the base price, watch for: stamp duty (4–7%), GST (5% for UC), registration (1%), floor rise charges (₹50–300/floor), car parking (₹3–10L), society formation charges, maintenance deposit (3–24 months), and clubhouse/amenities charges.
Carpet area is the net usable floor area inside your flat. It excludes walls, balconies, and common areas. RERA mandates that prices be quoted in carpet area. Always compare per sq.ft. rate on carpet area across properties—not super built-up area.
An Occupancy Certificate (OC) is issued by the local municipal authority after verifying that construction complies with approved plans. It’s mandatory for legal habitation, utility connections, and home loan disbursement. Never accept possession of a flat without OC.
Check: possession date, penalty for delay, payment schedule, carpet area mentioned, amenities promised, forfeiture conditions, escalation charges, super area loading, and dispute resolution mechanism. Have a property lawyer review the ATS before signing.
