Buying a home in an under-construction property can be a smart decision — prices are often lower than ready-to-move projects, and you can choose your preferred layout or floor. However, it also comes with risks. One of the biggest concerns is whether the builder or developer is credible and reliable enough to deliver the project on time and as promised.
This blog will guide you through how to check the credibility of an under-construction society to protect your investment and avoid legal or financial troubles.
1. Verify RERA Registration
Start by checking if the project is registered under RERA (Real Estate Regulatory Authority).
- Every under-construction residential project must be registered with RERA.
- Visit your state’s RERA website and search by the project name or developer name.
- A RERA-registered project shows that the developer is legally bound to deliver as per the timelines and specifications mentioned.
Why it matters: RERA ensures greater transparency and provides a platform to raise complaints if the builder defaults.
2. Check the Developer’s Track Record
The credibility of the developer is crucial. Research their past and ongoing projects:
- Were they completed on time?
- Are there any major quality complaints from past buyers?
- Did they deliver all promised amenities and approvals?
Look at online reviews, news articles, and customer forums. If the builder has a history of delays or disputes, treat it as a red flag.
Tip: Choose developers who have completed multiple projects successfully in the same city or region.
3. Verify All Legal Approvals
Before construction starts, developers must get several statutory approvals from local authorities. Ask for copies of these documents:
- Building plan approval from local municipal authority
- Commencement certificate (CC)
- Environmental clearance
- Land title documents
- No Objection Certificates (NOCs) from utility departments (electricity, water, sewage)
Having all approvals in place reduces the risk of legal issues and project halts later.
4. Inspect the Financial Health of the Project
If the builder is facing a financial crunch, construction could get delayed. Do a basic check of the financial stability of the developer:
- Is the project funded by reputed banks or NBFCs?
- Has the developer tied up with any financial institutions?
- Are they involved in too many projects at once (which might stretch their resources)?
Banks and housing finance companies usually do their own due diligence before funding, so their involvement is a positive sign.
5. Evaluate Construction Quality and Site Progress
Whenever possible, do a site visit to assess the actual construction work.
- Check if the quality of raw materials used (bricks, cement, fittings) seems standard.
- Ask for stage-wise progress reports from the developer.
- Compare the current progress with the promised delivery timeline.
Some buyers also hire independent civil engineers to inspect the site and give an unbiased quality report.
6. Review the Builder-Buyer Agreement Thoroughly
Before signing anything, carefully read the builder-buyer agreement. Ensure it clearly mentions:
- Total cost and payment schedule
- Construction milestones
- Delivery date and penalty clauses for delay
- Specifications of the flat and amenities
A well-drafted agreement protects your rights as a buyer and can be used in legal disputes if the builder defaults.
7. Talk to Existing or Early Buyers
If other buyers have already invested in the project, talk to them. They can provide first-hand insights into:
- Builder’s responsiveness and communication
- Quality of work so far
- Any hidden charges or discrepancies
Real customer feedback often reveals issues that may not be visible in brochures or advertisements.
8. Check if the Project Is Covered by Insurance or Escrow
As per RERA norms, 70% of the buyer’s payments must be deposited into an escrow account, which can only be used for construction of that project.
Ask the developer for details about the escrow account and if the project has any insurance cover for delays or accidents. This ensures better financial security for buyers.
Also Read: Under Construction vs Ready to Move Property
Verifying the credibility of an under-construction society can be time-consuming and complex — but it’s absolutely essential to safeguard your hard-earned money. From checking RERA registration, validating legal approvals, analysing builder reputation, to evaluating financial stability and site progress, every step plays a vital role in ensuring a safe investment.
Address Advisors can simplify this entire process for you. Our team of real estate experts conducts thorough due diligence on under-construction projects in Bangalore, verifies legal and technical approvals, and helps you shortlist RERA-approved and reliable developers. With our guidance, you can confidently invest in an under-construction property without worrying about risks or delays.
