Buying From a Developer in India: 25 Things You Must Verify Before You Buy

🏗️ Buying From a Developer in India: What Should You Verify?

The brochure sells the dream. Your job is to verify what stands behind it.

Buying from a developer can feel safer than buying from an individual seller.

There is a polished sales office. A glossy brochure. A furnished sample flat. A recognisable logo on a giant hoarding. The paperwork arrives printed, stamped and confident.

🔴 That confidence is exactly why you should slow down.

When you buy resale, you are largely checking one owner and one title.

When you buy from a developer, whether it is an apartment, villa or DTCP-approved plot, you are really investigating four separate things at once:

Any one of these can fail while the other three look perfectly healthy.

A project can have a flawless title and a financially troubled builder.

It can have a famous builder and a defective layout approval.

It can have every approval in place and still hand you a contract heavily tilted against you.

So verify the project in layers.

This guide walks through those layers in the order a buyer should actually check them, with Tamil Nadu-specific points where relevant.

🛡️ STAGE 1: THE RERA GATE

Your first filter. Free, fast and surprisingly powerful.

Start with RERA before you become emotionally attached to the property.

In Tamil Nadu, verify the project through:

🔗 TNRERA: rera.tn.gov.in

For projects covered by RERA, do not simply accept the registration number printed on the brochure.

Type it into the portal yourself.

✅ What should you look for?

🚨 Watch the wording

Registered is what you want.

Be cautious if you see:

🔴 Pending 🔴 Rejected 🔴 Revoked 🔴 Cancelled 🔴 Expired

And download Form C directly from the portal rather than relying only on a PDF forwarded by the sales team.

💳 Who Is Actually Taking Your Money?

This tiny check can uncover a very large problem.

Compare:

Promoter on Form C ⬇️ Entity on the booking form ⬇️ Name on your agreement ⬇️ Bank account receiving your money

🟢 Ideally, the legal relationship should be clear and consistent.

If Form C names one company but your money is being collected by another company, marketing entity, associate firm or landowner, stop and understand the legal arrangement before paying.

💡 Rule: Never let a salesperson's explanation replace documentary proof.

Also look at the promoter's other projects.

A developer's history can tell you more than the marble flooring in the sample flat.

Look for previous completion records, delays and regulatory orders.

👔 Check the Agent Too

If a real estate agent is involved, verify the agent's TNRERA registration where applicable.

One small irregularity may have an explanation.

Five small irregularities together usually deserve much more attention.

⚠️ Remember

RERA registration is a filter, not a guarantee.

It does not automatically certify construction quality, guarantee delivery or replace independent title verification.

🌍 STAGE 2: THE LAND UNDERNEATH

The brochure sells a building. You are buying a share of the earth beneath it.

And land remembers everything.

Old ownership.

Mortgages.

Partitions.

Family settlements.

Court attachments.

Survey mistakes.

Rights that existed long before the developer put up the first hoarding.

📚 1. Trace the Title Chain

Ask for the parent documents and have your own advocate examine the ownership history.

A careful title investigation commonly looks well beyond the latest transaction and may examine roughly 30 years of history, depending on the facts.

Look particularly carefully at:

• Missing links in ownership
• Unregistered partitions
• Settlement deeds
• Family claims
• Powers of attorney
• Mortgages
• Court proceedings
• Survey-number inconsistencies

📜 2. Pull a Fresh Encumbrance Certificate

Use:

🔗 tnreginet.gov.in

Check the relevant survey numbers.

You are looking for things such as:

⚠️ Mortgages ⚠️ Earlier sale agreements ⚠️ Court attachments ⚠️ Registered charges ⚠️ Other transactions affecting title

A developer having borrowed against project land is not automatically unusual.

What matters is whether the lender's charge is properly dealt with when your particular property is conveyed to you.

🏦 If necessary, obtain the lender's release/NOC for your unit.

🗺️ 3. Patta + Chitta + FMB

For plotted developments especially, verify the land records against the actual land.

👟 Then do something beautifully low-tech.

Walk the land.

Take the relevant survey/FMB information and compare the paper boundaries with what actually exists on site.

Paper can say one thing.

A compound wall, road, drain or neighbour's fence may say another.

🤝 JOINT DEVELOPMENT PROJECT?

This is common.

The developer may not own the land outright. Instead, the landowner and developer may have entered into a Joint Development Agreement (JDA).

That is not automatically a problem.

But verify:

✅ The JDA is properly registered where required ✅ The developer has authority to sell your specific unit ✅ Landowner and developer allocations are clear ✅ The conveyancing structure is legally sound ✅ Required parties join or confirm the eventual conveyance

🔴 Never assume that because the developer constructed the flat, the developer automatically owns the legal right to sell that particular flat.

🏛️ STAGE 3: APPROVALS

Read the approval numbers, not the gold lettering around them.

In Tamil Nadu, depending on location and project type, approvals may involve:

🏙️ CMDA

For the Chennai Metropolitan Area.

🏘️ DTCP

For areas falling under its planning jurisdiction.

🏛️ Local Bodies

Corporations, municipalities, town panchayats, village panchayats and other competent authorities may be relevant to building permissions.

🔍 Your Approval Table

🚨 THE APPROVED PLAN TEST

Take the approved plan.

Put it beside the marketing plan.

Compare them.

This may be one of the most valuable hours you spend during the entire purchase.

Example:

Brochure: 14 floors ✨ Sanction: 11 floors 📄

That difference is not a decorative detail.

It is a question.

Ask it before you book.

🏢 STAGE 4: INVESTIGATE THE DEVELOPER

You are not merely buying concrete.

For an under-construction project, you may be handing substantial money to a company months or years before receiving the completed asset.

So investigate the company too.

🧾 Corporate Checks

Consider checking:

• 🏢 MCA/ROC company filings
• 👥 Directors
• 💳 Registered charges
• ⚖️ Relevant NCLT/IBC proceedings
• 🧾 GST registration
• 🔗 Related companies and SPVs
• 🏗️ Previous projects
• ⏰ Historical delivery performance

🚗 DON'T VISIT ONLY THE SAMPLE FLAT

Visit older completed projects by the same builder.

Ideally, look at developments that have already survived several monsoons.

Talk to residents.

Ask them:

“Any seepage?”

“How are the lifts?”

“Did possession happen when promised?”

“How was the handover?”

“Was the corpus transferred?”

“How responsive is the builder after the sale?”

A sample flat is designed to sell you tomorrow.

An occupied three-year-old building shows you what tomorrow may actually look like.

🏦 BANK APPROVALS: USEFUL, BUT NOT ENOUGH

If several established lenders finance the project, their legal and technical teams may already have performed substantial diligence.

That is useful corroboration.

But:

🟡 A bank approving a project does not replace your own advocate.

The bank protects its loan.

Your lawyer protects your purchase.

Those interests overlap, but they are not identical.

✍️ STAGE 5: THE AGREEMENT

This is where the glossy brochure finally meets legal reality.

Most buyers negotiate the price.

Far fewer negotiate the agreement.

That can be backwards.

A ₹2 lakh discount feels wonderful on booking day.

A badly drafted possession clause can cost far more later.

📐 CARPET AREA: FIND THE REAL NUMBER

RERA requires disclosure of carpet area.

Do not compare projects only using a headline rate based on a larger marketed area.

🧮 Calculate:

Total Property Cost ÷ Carpet Area = Effective Cost per sq. ft. of usable area

That figure makes comparison much more meaningful.

🌍 CHECK THE UDS

For apartments, examine the Undivided Share of Land (UDS) carefully.

Verify:

✔️ How it was calculated ✔️ Whether it is proportionate and legally appropriate ✔️ What appears in the agreement ✔️ What ultimately appears in the conveyance/sale deed

UDS can matter years later during:

🏦 Financing 🏠 Resale 🏗️ Redevelopment ⚖️ Ownership disputes

🏛️ TAMIL NADU: COMPOSITE VALUE REGISTRATION

Tamil Nadu introduced a significant change for first-sale multi-storey apartments from 1 December 2023, moving relevant registrations toward a composite valuation approach covering land and building.

For buyers, this makes it especially important to understand:

💰 The value being registered 📜 How land and building rights are conveyed 🏦 The effect on loan documentation 🧾 The applicable stamp duty and registration calculation

If the documentation structure appears unusual, have your advocate explain why before you sign.

🔬 READ THESE CLAUSES LINE BY LINE

📅 Possession Date

Demand clarity.

A defined date is much easier to enforce than language built around an undefined commencement event.

⚖️ Delay Penalty

Compare both sides.

What happens when YOU pay late?

versus

What happens when THEY deliver late?

🌪️ Force Majeure

Watch for wording so broad that ordinary commercial problems become excuses for delay.

🪵 Specifications

The agreement should clearly record material standards and specifications.

Flooring. Electricals. Sanitary fittings. Lifts. Waterproofing. Common areas.

❌ Cancellation

Know exactly what happens to your money if either party exits.

🏗️ Alteration of Plans

Understand what the promoter may and may not change after allotment.

🛠️ Defect Liability

RERA provides important post-possession protections, including a statutory defect-liability framework.

🏊 Common Areas

Parking, terrace rights, amenities, clubhouse and other common facilities deserve explicit attention.

💰 STAGE 6: FOLLOW THE MONEY

🏗️ Prefer Milestone-Linked Payments

Where possible, connect instalments to actual construction progress rather than arbitrary calendar dates.

For example:

Foundation completed ⬇️ Structure reaches agreed milestone ⬇️ Brickwork ⬇️ Services ⬇️ Finishing ⬇️ Possession

🚫 Avoid

❌ Cash ❌ Personal bank accounts ❌ Unexplained third-party accounts ❌ Payments without receipts ❌ “Pay today, documents tomorrow”

🧾 GST

The tax treatment differs according to the nature and construction status of the property.

As a broad working reference:

Tax rules and project facts matter, so verify the current treatment before payment.

💸 STAMP DUTY + REGISTRATION

For Tamil Nadu property purchases, registration costs can form a substantial part of your total acquisition cost.

Do not budget only for the advertised property price.

Your real acquisition budget may include:

Property Price ➕ GST where applicable ➕ Stamp Duty ➕ Registration Fee ➕ Legal Fees ➕ Loan Charges ➕ Maintenance Advance ➕ Corpus / Association Charges ➕ Utility Deposits ➕ Interiors ➕ Other disclosed project charges

💡 Check the latest applicable values and rates on tnreginet.gov.in before registration.

🧮 DON'T FORGET TDS

For property consideration of ₹50 lakh or more, Section 194-IA may require the buyer to deduct 1% TDS, subject to the applicable law and transaction structure.

That responsibility sits with the buyer.

So plan for:

📄 Form 26QB 📄 TDS payment 📄 Form 16B 📄 Correct PAN details

For joint buyers/sellers or unusual structures, get professional advice.

🔑 STAGE 7: BEFORE TAKING POSSESSION

The building looking finished does not mean your verification is finished.

Before accepting possession, examine:

• 🏢 Completion Certificate where applicable
• 🟢 Occupancy Certificate where applicable
• 🔥 Fire and other statutory NOCs where required
• 🚰 Water/sewerage approvals where relevant
• ⚡ Electricity arrangements
• 🛗 Lift approvals where applicable
• 📝 Snag inspection completed
• 🏘️ Owners' association status checked
• 💰 Corpus/accounts handover checked
• 📐 As-built drawings obtained where relevant
• 🛠️ Equipment warranties/AMCs obtained
• 🧾 Property-tax mutation initiated
• 🌍 Patta/revenue-record transfer initiated where applicable

🚨 RED FLAGS: KNOW WHEN TO STOP

🔴 One red flag deserves a question.

🔴🔴🔴 Several red flags deserve a lawyer.

🔴🔴🔴🔴🔴 A pile of red flags deserves your feet.

Walk away.

🧭 THE JAMIN BUYER'S WORKING CHECKLIST

🟢 BEFORE BOOKING

• Verify TNRERA status yourself
• Download Form C from the live portal
• Match promoter identity with the payment recipient
• Review promoter's past projects
• Cross-check approval numbers
• Compare sanctioned plan against advertised plan
• Visit completed projects by the same builder

🟡 BEFORE SIGNING

• Have your own advocate examine title
• Obtain a fresh EC for relevant survey numbers
• Verify Patta and relevant land records
• Check FMB/site boundaries where relevant
• Examine JDA/POA where applicable
• Confirm carpet area
• Verify UDS
• Review payment milestones
• Fix possession obligations
• Review delay penalties
• Review force majeure
• Check cancellation terms
• Check specifications
• Check defect-liability provisions
• Understand common-area rights

🟠 BEFORE REGISTRATION

• Obtain lender release/NOC where required
• Check current guideline/composite values
• Calculate stamp duty and registration charges
• Arrange cleared funds
• Plan applicable TDS compliance
• Reconcile every amount already paid

🔵 BEFORE POSSESSION

• Verify CC/OC as applicable
• Verify required statutory NOCs
• Conduct a detailed snag inspection
• Record defects before signing final possession documents
• Check association formation
• Check corpus and account handover
• Collect warranties and relevant drawings
• Initiate property-tax and land-record mutations

❓ FREQUENTLY ASKED QUESTIONS

🛡️ Is a RERA-registered project automatically safe?

No.

RERA registration is an important first filter, but it does not replace independent title, approval, financial, technical and contractual diligence.

📐 Carpet area or super built-up area: which matters?

For understanding what usable space you are actually purchasing, carpet area is the critical number.

Calculate the effective price based on carpet area when comparing projects.

🧾 Do I pay GST when buying from a developer?

It depends on the nature and construction status of the property.

Under-construction residential property can attract GST, while qualifying completed residential property may not.

Pure land sales are treated differently.

Always verify the current tax treatment for the specific transaction.

🏗️ Can I take possession without an Occupancy Certificate?

Treat this with extreme caution.

An OC is an important confirmation that the completed building complies with applicable requirements for occupation. Its absence can affect occupation, utilities, financing and resale.

⏰ What if the developer delays possession?

RERA provides remedies to allottees in qualifying circumstances, including rights relating to refund and/or interest depending on whether the buyer withdraws or continues with the project.

Have your lawyer examine the agreement alongside the applicable RERA provisions.

🛠️ How long is the developer liable for defects?

Section 14(3) of RERA provides a five-year defect-liability period from possession for specified structural and other defects, with rectification obligations on the promoter.

⚡ THE 60-SECOND VERSION

Before buying from a developer, remember three things.

1️⃣ VERIFY IT YOURSELF

Do not merely photograph the RERA number on the brochure.

Open the portal. Search it. Read the documents.

2️⃣ HIRE YOUR OWN ADVOCATE

Not the salesperson.

Not the developer's lawyer.

Not somebody whose fee depends on the transaction closing.

Your lawyer.

3️⃣ NEGOTIATE THE CONTRACT, NOT ONLY THE PRICE

A discount disappears once.

A bad clause can follow you for years.

🏡 THE JAMIN BAZAAR RULE

A beautiful gate does not prove title.

A famous developer does not prove approval.

A bank loan does not prove everything is clean.

A RERA number does not replace diligence.

And a salesperson saying “Sir, don't worry” is not a legal document.

Verify the land. Verify the approval. Verify the developer. Verify the agreement. Then buy.

Because when you buy property, you are not buying the brochure.

You are buying everything the brochure doesn't show.

👑 Buying Property? Verify Before You Commit.

Jamin Bazaar can help you discover properties, understand what to check and approach your property search with better questions.

Explore. Compare. Verify. Then decide.

⚖️ Disclaimer: This article provides general educational information and is not legal, financial or tax advice. Property documentation, approvals, tax treatment, registration charges and regulatory requirements can change and vary by project and location. Verify current information with the relevant government portals and engage an independent qualified advocate, chartered accountant or other appropriate professional before entering into a property transaction.