RERA Payment Schedule for Under-Construction Flats: All You Need to Know

When buying an under-construction flat, one of the most important aspects to consider is the payment schedule. Understanding how and when payments are due can make the process smoother and ensure you do not face any unexpected financial surprises. The Real Estate (Regulation and Development) Act, 2016 (RERA) has put guidelines in place to protect homebuyers and make the payment schedule more transparent and accountable.

What is the RERA payment schedule for under-construction flats?

The RERA payment schedule is a structured plan set by developers for homebuyers. It outlines the specific payments due at different stages of the construction process. This schedule protects the buyer by ensuring that the builder only collects money for completed work, which means the builder must deliver as promised before receiving full payment.

In simpler terms, instead of paying upfront or in large lump sums, the buyer makes payments based on the progress of the construction. These milestones are predefined and must be aligned with the actual progress of the project. The RERA payment schedule prevents builders from collecting money without fulfilling their obligations.

Why is RERA payment schedule important?

The introduction of the RERA payment schedule has revolutionised the way real estate transactions are carried out in India. Before RERA, many builders would demand hefty sums of money upfront, leaving buyers at risk of delayed projects or unfinished homes. With RERA in place, developers must now comply with specific guidelines, which ensure that payments are directly tied to the completion of work.

Here is why RERA’s payment schedule is important:

• Transparency: Buyers can clearly see when and how much they need to pay. This eliminates ambiguity and protects them from fraudulent practices.
• Security: Payments are only made after work is completed, ensuring that buyers’ funds are being used responsibly.
• Timely completion: By tying payments to construction milestones, builders are motivated to finish work on time to receive the next instalment.

Understanding the RERA payment schedule for under-construction flats

Under the RERA guidelines, the payment schedule must follow a clearly defined structure, usually linked to certain phases of the construction. These milestones are generally as follows:

1. Booking amount: The first payment is typically a small token amount when you book the flat. This amount is usually non-refundable and is a commitment to buying the property.

2. Agreement signing: Once the buyer and seller finalise the sale agreement, the buyer is required to pay a percentage of the total cost. This payment is usually a larger sum and indicates the buyer’s serious intent to proceed with the purchase.

3. Foundation/excavation completion: This is the next stage in the construction process, where the foundation work begins. Builders can claim a certain percentage after completing this phase.

4. Superstructure completion: This stage involves the construction of the building’s framework. The builder will request another payment instalment once this phase is finished.

4. Brick work completion: This milestone includes completing the brickwork and basic structure. Builders may request payments based on this stage’s completion.

5. Plastering/finishing: As the construction nears its final stages, payments are made for plastering and other finishing works.

6. Possession: The final payment is due when the flat is ready for possession and handover to the buyer. At this stage, the buyer takes possession of the property and settles the remaining balance.

What’s new under RERA guidelines?

The RERA guidelines ensure that the payment schedule for under-construction flats is aligned with construction progress. This means builders can no longer demand large sums of money upfront, or before completing specific construction milestones. They can only request payments once work has reached the designated stage.

Furthermore, RERA mandates that the schedule must be clearly stated in the agreement for sale. This means both the buyer and builder must sign a contract that details the payment milestones and timelines. If the builder fails to meet the scheduled milestones, the buyer is not obligated to make payments.

This structure reduces the risk for buyers and helps ensure that builders are held accountable. If a builder fails to meet the agreed-upon timelines, they are legally required to complete the project or refund the buyer’s money, along with compensation for any delays.

How to ensure you are following the RERA payment schedule?

As a buyer, it is essential to verify that the payment schedule in your agreement aligns with the RERA guidelines. Always make sure that:

• The milestones are clearly mentioned in the agreement.
• The schedule is linked to actual construction progress.
• Payments are being made only when a phase of the project is completed.

You should also regularly check the project’s status, either through the builder or the RERA portal, to ensure the construction is progressing as scheduled. If the builder demands payments without meeting milestones, you have the legal right to challenge the payment.

How do home loans fit into the RERA payment schedule?

Buying a home can be a significant financial commitment, especially when it comes to under-construction properties. Many buyers opt for home loans to fund their property purchase. When it comes to RERA payment schedules, home loans play an essential role by providing the necessary funds for each milestone.

Banks and financial institutions disburse home loans according to the RERA payment schedule. This means that your home loan provider will release the loan amount in instalments based on the construction stages. For example, if your bank has approved a loan for 80% of the property’s value, they will release the funds in line with the milestones listed in the RERA schedule.

It is crucial to inform your bank about the RERA payment schedule before you start the loan process, as this will help them disburse funds correctly. Home loan providers may also have their own set of rules regarding disbursement, so it is essential to discuss this in advance to avoid any delays.

How Bajaj Housing Finance Home Loan can help

Purchasing a RERA approved under-construction flat with a home loan can make the process much easier, and Bajaj Housing Finance offers tailored home loan options to help you with this journey. With flexible loan terms, competitive interest rates, and quick approval processes, Bajaj Housing Finance ensures that you can manage your payments as per the RERA schedule comfortably.

With Bajaj Housing Finance Home Loan, you can enjoy:

High loan amounts: Get a loan amount of up to Rs. 15 crore* that suits your needs, making it easier to finance an under-construction property.

Low interest rates: Bajaj Housing Finance offers competitive rates starting at 8.25%* p.a, making your monthly payments manageable.

Quick approvals: Get approved within 48 Hours* of applying – sometimes even sooner.

Flexible repayment: Choose a repayment plan that works for your financial situation, with EMIs spread across a convenient tenure.

Top-up loans: If you have an existing loan, Bajaj Housing Finance offers a balance transfer and top-up loan facility.

With Bajaj Housing Finance Home Loan, you can make your dream of owning a home come true.