RERA Payment Schedule for Under Construction Flat?

Recently, I bought an under construction property in Bangalore. Understanding the RERA payment schedule for under construction flat was very crucial for me. Honestly speaking, I didn't want to make big upfront payments before I could see any results. Fortunately, clarification was offered by the RERA (Real Estate Regulatory Authority) rules. In order to safeguard homebuyers against project delays or financial mismanagement, RERA requires that payments be issued in phases that are closely tied to development milestones.

What are the Payment Terms for Under Construction Property?

1. 10% of the property value is required as a booking amount to hold the unit.

2. 10% of the total cost must be paid at the start of construction.

3. 15% after the foundation and basement are done.

4. 2 to 3% for each level or block milestone attained.

5. Plastering, painting, and final fittings account for 5% of the finishing work.

6. Upon possession and receipt of the occupancy certificate, the last payment is 5%.

RERA guarantees that developers cannot demand arbitrary payments. Every payment is linked to the site's actual development, which aids in the prompt delivery of home loans. This timeline gives the customer financial security and the developer consistent revenue. Always check the terms and conditions of your builder's agreement.

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According to the payment plan for under construction projects, when an individual purchases a project that is still under construction, he/ she is not required to pay the developer the whole sum of the flat fee upfront. The developer can charge for the flat in accordance with the stage of development under the terms of the Real Estate Regulatory Act (RERA).

• The initial 1-2 installments of this kind of building under construction payment schedule are typically time-based. After that, the remaining installments are paid as and when the construction is completed. 

• The developer chooses the terms of payment, and the buyer and developer discuss them before reserving the property.

• A booking amount, which is typically 10% of the apartment's cost, is the initial payment the buyer makes to the builder when they book a property. 

• The bank then pays the builder according to the project's construction stages. The entire payment is made after the project is finished, or nearly finished. 

• The buyer is only required to pay the bank the pre-EMI interest on the home loan during the construction phase.

• Developers can benefit from financial stability by spreading out the cost of a project over time via construction-linked payment arrangements. This can lessen the risk of financial instability and increase the project's financial viability.

• A versatile alternative for homebuyers is the CLP plan. These payment plans lessen the financial strain of the purchase and make it more affordable for home buyers by enabling the buyers to make payments at regular intervals as the project advances.

I hope this helps you understand the payment plan for under construction projects

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According to the RERA payment schedule for under construction flat, when you purchase a property that is still under construction, you are not required to make the entire payment at once like you might have done while purchasing a completed home; instead, you can spread it out over a specified period of time.

What is the payment schedule for under construction flat as per RERA?

The payment schedule for a property that is still under construction is determined by the building stage, in accordance with the Real Estate Regulatory Act (RERA). 

A typical payment schedule for an under-construction project is as follows: 

• 10% of the property's value is paid by the buyer at the time of booking

• 10% more at the start of construction

• 15% more when the project is finished up to the plinth level

• After that, one pays 2-3% when each level is finished

• On completion of the plastering, plumbing, and painting, approximately 5% of the total is paid

• and the remaining 5% is paid when possession is taken.

I hope now you have understood the RERA payment schedule for under construction flat. I hope this helps:)

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