The Real Estate (Regulation and Development) Act, 2016 changed the under-construction housing market materially. Project registration, escrowed receipts (70% of buyer money must be retained for construction), penalty for delays, a complaints mechanism through the state RERA authority — these have given buyers protections that were practically unavailable in the pre-RERA market.

None of that, however, has eliminated the need for pre-purchase diligence. Builders still go insolvent. Approvals still get cancelled. Title still gets disputed. Carpet areas still shrink between brochure and possession. In 2026, the buyer who pays before doing diligence is no better protected than the buyer who did so in 2010 — they just have a more elaborate complaint mechanism to pursue afterwards.

The RERA register: necessary but not sufficient

Start with the project’s RERA registration. Every state RERA authority maintains an online register of registered projects, with documents the builder has filed — the title deed, the approvals, the construction schedule, the layout, the proforma agreement, the bank account details of the escrow account, and quarterly progress updates. If the project is not registered, do not pay any amount. The Act prohibits builders from advertising or accepting payments for unregistered projects, and the absence of registration is itself a signal that something is wrong.

Confirm the registration is current and unrevoked. RERA authorities have revoked registrations in cases of repeated non-compliance, and a project with a revoked registration cannot legally accept further payments.

Title verification

RERA does not perform title diligence on the builder’s behalf. The builder uploads a title-clearance certificate from a lawyer, but the quality of that certificate varies widely and it cannot be relied on by the buyer as their own diligence.

For any meaningful purchase, the buyer should obtain a 30-year title search of the property, an encumbrance certificate from the sub-registrar’s office (covering at least the last 15 years), and the latest mutation entry. Any pending litigation, lis pendens entries, mortgage charges, or unregistered transactions need to be cleared or disclosed before payment. Land that is technically agricultural, that has been illegally converted, or that sits in a notified green belt or restricted zone is a recurring problem — the project may have a building approval but no clear title.

Approvals to verify

The non-exhaustive list: the Commencement Certificate (CC) from the local municipal authority, the environment clearance if the project is above the threshold, fire NOC from the state fire services, airport authority NOC if within the relevant funnel, structural stability approval, and ultimately the Occupation Certificate (OC) at completion. The OC is the most important — a building without an OC cannot legally be occupied, however ready it appears, and securing an OC retroactively can take years and substantial penalty payments.

Builder’s financial health

This is the diligence buyers most often skip and most often regret. Run a search on the NCLT website for any insolvency proceedings against the builder entity or its associates. Check the MCA portal for the company’s annual returns, directors, charges filed, and any disqualified directors. Look for the builder on credit-rating watch lists (CRISIL, ICRA, CARE). For larger builders, check whether the parent or associated entities have appeared before SEBI for any disclosure issues.

A specific red flag: builders who have multiple SPV-based projects, where each project is a separate legal entity. The structure is legitimate, but it means that one project’s failure does not affect another’s assets. If the SPV running your project goes insolvent, the parent group’s other projects are not on the hook.

The Builder-Buyer Agreement (BBA)

RERA prescribes a model BBA in most states, but builders typically modify it. Clauses to read closely: the carpet area definition (RERA-compliant carpet area excludes balcony, terrace, and common areas — older agreements sometimes use “super built-up area” calculations that inflate the price); the delivery date and the grace period (often 6–12 months beyond the headline date); the penalty rate for delay (RERA sets a minimum, but the BBA may set it higher in the builder’s favour); and the force majeure clause (post-COVID, builders have inserted expansive force majeure language — be wary of any clause that allows the builder to extend the delivery date indefinitely for vaguely defined reasons).

Payment milestones

Avoid lump-sum upfront payments. The standard structure is milestone-based payments tied to construction progress — foundation, structure, finishes, possession. Each milestone payment should be made only after the relevant construction stage has been verified, ideally by an independent inspection. RERA requires the builder to provide proof of progress, but the burden of verification is on the buyer.

The genuine red flags

A project where the builder is asking for accelerated payment ahead of the construction milestones. A project where the bank financing is unusually expensive (this often means the bank itself sees risk). A project where the builder offers steep discounts to early bookers that look too good to be commercially rational. A builder who is unwilling to provide soft copies of the approvals on request. A builder whose previous projects have RERA complaints pending.

Any one of these can be explained; two or more should give serious pause.

For pre-purchase diligence on residential or commercial property, a comprehensive review typically takes 7–10 working days and costs a fraction of the eventual stamp-duty payment. It is the most cost-effective due-diligence spend most home buyers will ever make.