Booking an under-construction builder floor in South Delhi
Booking an under-construction builder floor means paying in stages against construction progress, and GST may apply to the price, so ask your CA for the current rate. Before you book, check these 4 things in writing: the builder's delivery record, the sanctioned plan, the agreement's protections and the payment stages.
· By Raghav Chopra, founder, in South Delhi real estate since 2010
How are payments staged?
Payments follow construction milestones named in the agreement, for example on booking, on laying the structure, on finishing the walls and on possession. Never pay ahead of the stage the building has reached.
Match each instalment to a stage you can see on site, and keep every receipt.
What GST applies?
GST can apply to an under-construction residential property. The rate and the conditions are set by the GST Council and change, so ask your CA for the current position before you book.
A ready floor with a completion certificate is generally outside this. Your CA confirms how it applies to a builder floor on your plot.
How do you check the builder and the plan?
Ask for the sanctioned plan and compare it with what the builder is building. Visit completed buildings by the same builder and speak to the residents, as the builders hub explains.
Raghav Chopra checks the sanctioned plan and the builder's record before he shows an under-construction floor.
What protections should the agreement include?
It should state the date of possession, the remedy for delay, the specification, the parking and terrace rights and who fixes defects after possession. It should be on stamp paper and registered where your lawyer advises.
Do not sign a builder's standard form without having your lawyer read it.
Under construction and ready compared
| Point | Under construction | Ready with completion certificate |
|---|---|---|
| Payment | In stages against progress | Token, agreement to sell, then balance at registration |
| GST | May apply; confirm the current rate with your CA | Check with your CA; generally not charged on a completed building |
| Main risk | Delay and deviation from the plan | Title and completion papers |
| What to check | Builder's record, plan, agreement | Five document checks |
Confirm the GST rate and how it applies to your purchase with your CA.
Frequently asked questions
Is it cheaper to buy an under-construction builder floor?
It can be priced lower than a ready floor, but you carry the risk of delay and deviation from the plan, you pay GST that a ready floor with a completion certificate generally does not, and you may pay rent meanwhile. Compare the total cost, not just the price.
How much should I pay on booking?
Pay only what the agreement names for the booking stage, and ask for a receipt. Do not pay ahead of the construction stage. Your lawyer should read the payment schedule, and the amounts should track progress you can verify on site.
What if the builder delays possession?
The agreement should say what happens: a penalty, interest on your payments or a right to exit. Without such a clause your remedy is a court case. Ask for the delay clause before you sign, and keep a record of every payment and message.
Can I get a home loan for an under-construction floor?
Banks do lend, usually disbursing in stages tied to construction, but they check the builder, the sanctioned plan and the title first, and they may refuse a project they cannot verify. Ask your bank for its checklist for under-construction builder floors before you book.
This is general information, not legal or tax advice. Confirm with your CA or lawyer before acting.
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