1. How RERA Protects Under-Construction Buyers
The Real Estate (Regulation and Development) Act, 2016 mandates every project to be registered before launch. Under RERA, builders must:
- Deposit 70% of all buyer collections into a project-specific escrow account
- File Quarterly Progress Reports (QPRs) with verified completion percentages
- Compensate buyers at SBI MCLR + 2% per month for any possession delay
- Disclose all litigations, title encumbrances, and approvals on the RERA portal
A valid RERA registration number is the minimum bar. Check your state portal — Karnataka uses rera.karnataka.gov.in, Maharashtra uses maharera.mahaonline.gov.in. Brickplot caps the score of any project with no valid RERA registration at 4.9 / 10, placing it firmly in Avoid territory.
You can also track RERA construction status for Brickplot-reviewed projects at /rera-construction-status.
2. OC (Occupancy Certificate) Requirements
An Occupancy Certificate is issued by the local municipal authority after it certifies the building is constructed per the sanctioned plan and safe for occupation. Without an OC:
- Your electricity remains on a temporary/commercial tariff — higher monthly bills
- Banks may withhold final home loan disbursal
- Resale is legally complicated — buyers can demand price reductions
- Municipal taxes may be higher until OC is granted
Always insist on a copy of the provisional OC (pOC) at possession. Brickplot's scoring rules cap any project that is RTM but lacks OC more than 6 months after handover to a maximum of 5.4 — a Wait verdict at best.
3. Builder Financial Health Checks
Builder financial health is Axis 3 in Brickplot's scoring rubric and carries a weight of 12%. Before booking, run these checks:
- NCLT/IBC search — search the builder name on nclt.gov.in and the IBC portal. Active insolvency caps Brickplot score at 3.9.
- MCA21 filings — check recent annual returns; three years of declining reserves is a warning sign.
- Delivery track record — verify that the builder delivered their last two projects within 18 months of promised date.
- Bank APF list — at least 2–3 banks should have approved the project for home loans; zero banks after 12 months is a red flag.
- ED / SFIO / CBI investigations — active investigations cap the Brickplot score at 3.9 regardless of other scores.
4. Home Loan Risks for Under-Construction Flats
Unlike ready-to-move purchases, home loans for under-construction flats are disbursed in stages aligned with construction milestones. Key risks:
- Sub-vention / no-EMI-till-possession schemes — builders pay interest during construction. If the builder defaults, you are liable for EMIs even before getting the flat.
- Diversion of disbursed funds — ensure each disbursal is linked to verified construction progress. Ask the bank for a copy of each valuation/technical report before signing off.
- Rate fluctuation — floating-rate loans taken today at 8.5% may reset higher over a 3-year construction window.
- Tax deduction on interest — Section 24(b) deduction on interest during construction is allowed only from the year of completion, in 5 equal instalments.
Brickplot's Axis 5: Bank Loan-Approval Depth (weight 6%) specifically scores whether the project has a healthy APF list and timely disbursal history.
5. Monitoring Construction via QPRs
A Quarterly Progress Report (QPR) is a mandatory RERA filing submitted by the builder every three months. QPRs disclose:
- Percentage of work completed (floor by floor for larger towers)
- Units sold vs unsold, and total collections received
- Escrow account utilisation vs total corpus
- Updated possession date if delayed
Use the SPI Calculator (Schedule Performance Index) to convert raw QPR data into a health score: an SPI above 1.0 means ahead of schedule; below 0.8 for two consecutive quarters is a serious stall signal.
Brickplot's weekly satellite sweep cross-validates QPR-reported progress against Sentinel-2 imagery to flag builders who over-report completion.
6. Complete Pre-Booking Checklist
Before signing the Agreement for Sale (AFS), verify all of the following:
| Item | Where to check |
|---|---|
| Valid RERA registration number | State RERA portal |
| RERA-disclosed possession date | State RERA portal → Form A |
| Latest QPR filed within last 90 days | State RERA portal → QPR tab |
| Clear title / EC (no mortgage) | Kaveri 2.0 (Karnataka) / IGR SRO |
| BBMP / municipal plan sanction | BBMP OBPAS or municipal portal |
| At least 2 banks on APF list | Bank or builder marketing team |
| Builder not in NCLT/IBC | nclt.gov.in case search |
| No ED / SFIO / CBI investigation | MCA21 portal + news search |
| OC obtained for previous projects | Builder track record / news |
| Escrow account details disclosed | RERA portal → Form B (CA cert.) |
7. Frequently Asked Questions
Is it safe to buy an under-construction flat in India in 2026?
Yes, with proper due diligence. RERA (Real Estate Regulation and Development Act) mandates that builders register every project, maintain a 70% escrow account, and file quarterly progress reports (QPRs). A project with a valid RERA number, timely QPR filings, and approvals from multiple banks is considerably safer than pre-RERA purchases. Brickplot scores under-construction projects on 11 axes including RERA disclosure, builder financial health, and construction delivery risk.
What is RERA and how does it protect under-construction flat buyers?
RERA (Real Estate Regulation and Development Act, 2016) is India's federal law governing property development. It requires builders to (1) register every project before marketing, (2) deposit 70% of collections into a project-specific escrow account, (3) file Quarterly Progress Reports (QPRs) with verified completion percentages, and (4) compensate buyers at SBI MCLR + 2% per month for possession delays. Buyers can file grievances with state RERA authorities online.
What is an OC (Occupancy Certificate) and why does it matter?
An Occupancy Certificate (OC) is issued by the local municipal authority (BBMP, BMC, GHMC, etc.) after it inspects and certifies that the building is constructed as per the sanctioned plan and is safe for occupation. Without an OC, a flat cannot be legally occupied, the electricity connection may remain on a temporary tariff, and home loan disbursal is usually withheld by banks. Under Brickplot's scoring rules, an OC-missing RTM project more than 6 months post-handover is capped at a maximum score of 5.4.
How can I check if an under-construction project has valid RERA registration?
Visit your state's RERA portal (e.g., rera.karnataka.gov.in for Karnataka, maharera.mahaonline.gov.in for Maharashtra) and search by project name or builder. Verify that (1) the registration number is active and not lapsed/withdrawn, (2) the proposed possession date is current, (3) QPRs have been filed in the last quarter, and (4) the escrow account is mentioned. You can also use Brickplot's RERA Construction Status tracker at brickplot.com/rera-construction-status.
What are the biggest risks of buying an under-construction flat?
The top risks are: (1) Possession delay — India's average delay is 2–3 years; (2) Builder insolvency — if promoter enters NCLT/IBC, project may stall indefinitely; (3) Diversion of funds — builder spends escrow on new land acquisitions instead of completing your project; (4) OC not obtained — you get possession but cannot legally reside or resell; (5) Title disputes — litigated land can freeze the project. Brickplot's score flags all these through hard caps on construction risk and legal health axes.
What should I check before taking a home loan for an under-construction flat?
Check the Approved Project Finance (APF) list — this is the list of banks that have done technical and legal due diligence on the project. A project with zero banks on APF more than 12 months after launch is a red flag (Brickplot caps score at 5.4). Confirm the construction-linked disbursement schedule, verify that the RERA escrow is bank-linked, and avoid sub-vention / no-EMI-till-possession schemes as they often hide deferred construction risk.
What is a QPR and how do I use it to monitor construction progress?
A Quarterly Progress Report (QPR) is a mandatory RERA filing by the builder every three months. It discloses the percentage of construction completed, units sold vs unsold, funds utilised from escrow, and revised possession timelines. You can download QPRs from the state RERA portal by navigating to the project's registered page. Brickplot's SPI (Schedule Performance Index) calculator at brickplot.com/tools/spi-calculator lets you score the construction velocity using QPR data to detect stalled or at-risk projects early.
8. Brickplot Verdict: When to Buy Under-Construction
An under-construction flat is a reasonable choice when all of the following hold:
- Valid RERA registration with QPRs filed in the last quarter
- Builder has no NCLT/IBC proceedings, no ED/SFIO/CBI investigation
- At least 3 banks on the APF list
- Brickplot score ≥ 6.5 (Wait) — ideally ≥ 8.0 (Buy Now)
- Construction is at least 40% complete, reducing delivery risk materially
- Price discount vs RTM in the same micro-market is at least 8–10%
If you are buying purely for personal use with a 5+ year horizon, a project scoring 6.5–8.0 with strong RERA compliance can be considered. If you are buying for investment with a shorter exit window, wait for RTM or near-completion projects.
Search Brickplot's RERA Construction Status hub for projects where QPR-reported completion is 60%+ — these have the best risk-adjusted profile for under-construction purchases.