How to Verify a Builder

Which projects must be registered under RERA?

Nearly all of them. The Real Estate (Regulation and Development) Act, 2016 sets a small floor. A project is left out only if the land is under 500 square metres, or if it has eight flats or fewer. All phases are counted together.

Each phase counts as its own project. Each one needs its own RERA number. Selling flats in a project above that floor, with no RERA number, is not a small slip. Section 59 allows a fine of up to 10% of the project cost. Keep breaking the rule and a jail term of up to three years is on the table.

Here is the exact wording of the let-off in section 3(2)(a):

• “where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases”

The rules a builder cannot contract out of

What does a RERA number actually prove?

Less than most buyers think. It proves the project is on the roll. It proves filings exist against it. It does not vouch for build quality. Nobody has vetted the builder’s books.

Its real worth is what it opens up. A listed project must file its plans, its due date and a status update each quarter. That public trail is the proof you want.

How do you check a builder’s past delivery record?

Search the state RERA site by builder name, not by project name. MahaRERA is the clearest example. It lets you look up listed projects, listed agents, complaint reports by project and by builder, and its own rulings.

Three signals matter most. First, count how many past projects had their due date pushed back, and by how long. Second, read the orders passed against the builder. The count of complaints alone means little. Third, see if any project sits in abeyance. MahaRERA lists “common bank account” as one such reason, which points straight at the 70% rule.

How do you judge a builder’s money position?

You will not get a credit rating. So read the behaviour instead. The Act makes the builder audit its books within six months of each year end. A chartered accountant must sign off that money drawn matched the work done. Ask for that letter. A builder who will not hand it over has told you plenty.

Then look at pace. Status filings each quarter are a must. Watch for a site where filings dry up but sales go on. Your money is funding something other than your building. If the builder is a listed firm, its own filings are public. They are worth an hour of your time.

Which projects fall outside RERA?

This is the part no sales team will raise. The Act also leaves out projects that got a completion certificate before it began. It leaves out repair and redevelopment work with no new sale or booking.

So a small plotted scheme under 500 square metres can sit outside the law. You get no RERA number to check. There is no forced separate account. There is no filing trail. That is not proof of fraud. It is far less cover, and the price should say so.

What to do before you pay the booking amount

1. Find the RERA number on the ad and search it on the state site.
2. Match the builder name on the site with the name on your receipt. They often differ.
3. Read the due date on the site, not the one in the brochure.
4. Open every past project by the same builder, and every order against them.
5. Confirm your broker is a listed agent under section 9.
6. Ask in writing for the separate account details and the last audit letter.

Do the money side at the same time. Stamp duty and registry are state charges. They sit outside the builder’s quote. Our stamp duty calculator sizes them. Check what a bank will lend you in our home loan eligibility guide. Then compare lenders on the best home loans page.

Common questions about checking a builder

How do I check if a project is RERA registered?

Go to the RERA site of the state where the flat is. Search the number printed on the ad. Section 11(2) says that number and the Authority’s website must show up clearly in the builder’s ad. If neither is there, treat it as a red flag. It is not a typo.

What can I do if the builder delays possession?

Section 18(1) gives you a choice. Walk away, and the builder must return your money with interest at the set rate, plus damages. Stay, and the builder must pay you interest for each month of delay until you get the keys. You file the claim with the state Authority. The RERA number is your first document.

Who pays if cracks appear after possession?

The builder does. Section 14(3) covers structural defects and poor workmanship, quality or services. You must report them within five years of handover. Once told, the builder must fix them free within thirty days. Report in writing and keep the receipt.

Must my broker be registered?

Yes. Section 9(1) bars any agent from helping sell in a listed project without their own RERA number. Ask for it and check it on the same site. An unlisted broker owes you nothing under the Act. Disputes then get much harder.

Does RERA help me if I buy a resale flat?

Only in part. The Act binds the builder to the first buyer. A resale from an owner is a private deal. Your remedy is the sale deed and general property law. The builder’s five-year defect duty still runs from the first handover date, not from your purchase.