The Ultimate 100-Point India Apartment Buying Checklist (RERA, Legal & Finance)

D2. Core Systems & Safety

• Earthquake Compliance: Confirm the building design is resistant to the specific seismic zone.

• Water Proofing: Ask for the waterproofing strategy for bathrooms, terraces, and podiums—major source of issues.

• Fire Safety Systems: Verify fire exits, sprinklers, smoke detectors, and hydrants comply with the Fire NOC.

• Lift Make & Capacity: Check the brand, capacity, and the provision of power backup for lifts.

• Power Backup Design: Confirm DG backup capacity for flats (e.g., 0.5–1 kVA) and common areas.

• STP, WTP & Water Source: Understand the water source (municipal/borewell/tanker), Water Treatment Plant (WTP), and Sewage Treatment Plant (STP) capacity.

D3. Plumbing & Electrical Inspection

• Water Pressure: Test all faucets and showers for adequate pressure and hot water functionality.

• Drainage: Check all sinks, toilets, and showers for proper drainage and no leaks under the sinks.

• Electrical Panel: Proper labeling, no corrosion, and adequate capacity.

• Outlets & Switches: Ensure all outlets are functional, properly grounded, and switches work without buzzing.

• Wiring Condition: Check for exposed wires or signs of inadequate insulation.

• Earth Leakage Circuit Breaker (ELCB): Ensure installed and functional for safety.

• Ventilation: Check exhaust fans in kitchen/bathrooms are functional and airflow is adequate.

E. Pricing, Taxes & Hidden Costs

• All-Inclusive Price Breakdown: Get a written breakdown: Basic Price, Floor Rise, PLC, Car Park, Clubhouse, Taxes, Corpus, etc.

• GST Applicability: Confirm if GST is applicable (≈5% for under-construction without OC) or not (Ready-to-Move with OC).

• Stamp Duty & Registration Charges: Budget for this state-specific cost (often 5–7% of agreement value).

• Car Park Charges Legality: Clarify if parking is being sold as “right to use” (open space parking sale is restricted).

• Floor Rise & PLC Transparency: Ensure Preferred Location Charges (PLC) are clearly stated and match RERA declaration.

• Maintenance Deposit & Corpus: Understand the quantum of the corpus fund contribution and how it is governed.

• Meter, Connection & Legal Charges: Clarify one-time costs for electricity meter, water connection, and legal documentation.

• Property Tax Receipts (Resale): Check that the latest tax-paid receipts are up-to-date.

• Society Maintenance Bills (Resale): Ensure all past maintenance payments are cleared.

• GST Documentation: For new properties, ensure GST compliance on builder payments.

• Price Validity & Escalation: Ensure the price is fixed and there are no unilateral escalation clauses (except statutory taxes).

• Discounts & Freebies: Ensure any freebies or discounts are documented in the cost sheet.

• TDS on Property Purchase: If consideration is ≥ ₹50 lakh, remember to deduct 1% TDS under Section 194-IA.

• Home Loan Approval Documents: If financing, ensure the property is approved by your bank.

• Bank NOC (Resale): Ensure a Bank NOC confirms no outstanding loan on the property.

F. Home Loan & Finance Planning

• Loan-to-Value (LTV) Limit: Confirm LTV limits (up to 75%–90% based on loan amount) as per RBI guidelines.

• Interest Rate Type: Decide between floating and fixed, and understand the rate reset frequency.

• Processing Fees & Hidden Charges: Compare processing fees, legal/valuation charges across different lenders.

• Subvention Schemes: Be cautious; understand who pays the interest during construction and the risk of builder delay.

• Stage-wise Payment: Ensure loan disbursals are strictly linked to construction milestones certified by the lender’s technical team.

• Prepayment & Foreclosure: Confirm charges (usually nil for floating-rate individual borrowers, but verify).

• Tax Benefits (Old Regime): Check eligibility for ₹2 lakh deduction on interest (Sec 24(b)) and ₹1.5 lakh on principal (Sec 80C).

• Choice of Tax Regime: Run the numbers to see if the old or new tax regime is more beneficial considering home loan deductions.

• Escrow Account Details: Ensure ≈70% of payments are deposited into the RERA-mandated project escrow account.

• Builder-Buyer Agreement (BBA): Ensure the BBA draft is in the standard RERA-prescribed format.

G. Agreements, Handover & Possession

• Delay Penalty Clause: Check whether the builder pays interest/compensation for delayed possession as per the agreement.

• Buyer Default Clause: Understand penalties, interest rates, and conditions for allotment cancellation if you delay payments.

• Change in Plans Clause: Verify how much the builder can change the layout without your consent (RERA restricts this heavily).

• Carpet Area Variation: See what happens if the final carpet area varies from the promised area and the price adjustment mechanism.

• Snag List Before Possession: Prepare a detailed list (door alignment, tile cracks, leak tests) and get a written rectification timeline.

• Possession Date: Confirm the date in writing and understand penalty clauses for delays.

• Handover of Documents: Collect copies of OC, sanctioned plans, NOCs, warranty cards, and as-built drawings.

• Defects Liability: Confirm the 5-year structural defect warranty as per RERA.

• Khata/Mutation: Confirm the process and timeline for updating municipal property records in your name after registration.

• Handover Checklist: Ensure all keys, access cards, and manuals are received.

H. Amenities, Environment & Exit Strategy

• Common Area Legality: Ensure the builder will form an RWA and transfer common areas within a defined timeframe.

• Maintenance Charges: Understand projected per-sq-ft maintenance and the initial management agency.

• Neighborhood Safety: Check crime rates, security measures, and lighting in the surrounding area.

• Commute & Convenience: Do a test run during peak hours to your workplace/school. Check road access and traffic.

• Resale & Rental Potential: Check typical rental yield and resale demand for similar apartment sizes in the micro-market.

Red Flags to Avoid

• Projects without valid RERA registration.

• Missing Occupancy Certificate (OC) for ready properties.

• Encumbrance Certificate showing pending loans or litigation.

• Developer asking for more than 10% advance before signing the BBA.

• Poor reviews or unresolved complaints on the RERA portal.

• Unusually low prices compared to established market rates.

Online Verification Resources