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Gillco Meraqui Journal

Common Myths About Buying an Under-Construction Flat

Thinking of buying an under-construction flat in Mohali? Here's what's actually true — and what's a myth — about risk, pricing, RERA & possession timelines.

Primary research topic: under construction flat myths

Myth 1 — "Under-Construction Always Means Higher Risk"

This was truer before RERA existed. Today, a RERA-registered project is legally required to disclose its approved plans, maintain a dedicated escrow account for project funds, and report construction progress — protections that simply didn't exist for older under-construction purchases. Risk hasn't disappeared, but it's materially lower for a compliant, RERA-registered project than the blanket "always risky" assumption suggests.

Myth 2 — "You Always Get a Much Better Price Than Ready-to-Move"

Early-phase under-construction pricing can be lower, but the gap narrows or disappears by the time a project nears completion, and buyers sometimes forget to factor in years of home loan interest paid during construction with no rental income or usage benefit in return.

Myth 3 — "The Possession Date on the Brochure Is Guaranteed"

The brochure date is a target, not a guarantee. What is legally meaningful is the possession date filed with RERA — that's the figure with regulatory teeth, and it's the one to confirm and hold the developer accountable against, not marketing material.

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Project visual supplied by Gillco Meraqui.

Myth 4 — "Once I Book, the Price Can't Change"

Depends entirely on the buyer agreement. Some payment plans include escalation clauses tied to construction stage or floor rise charges applied later — read the fine print rather than assuming the initial quoted number is final.

Myth 5 — "RERA Registration Means Zero Risk"

RERA registration means the project meets a baseline of legal disclosure and fund-handling compliance — it significantly reduces certain risks (fund diversion, undisclosed plan changes) but doesn't eliminate all risk, such as general construction quality variance or broader market conditions.

Myth 6 — "You Can't Customize Anything in an Under-Construction Flat"

Depending on the construction stage at the time of booking, buyers sometimes do get input on certain finishes or minor layout elements — this varies significantly by developer and project stage, so it's worth asking rather than assuming either way.

Buyer checklist

Keep the next step clear.

  1. Request the latest official project material relevant to this guide.
  2. Write down any commercial, legal, technical, or timeline points that need confirmation.
  3. Compare those documents against the needs of your household and budget.
  4. Take independent professional advice where a decision is consequential.

Questions, answered

Research with clarity.

Is under-construction property actually riskier than resale?

Not automatically — a RERA-registered project with a transparent track record can carry comparable, sometimes lower, risk than an unverified resale transaction with unclear title history.

Does RERA guarantee my possession date will be met?

No, but it does create a formal, filed commitment and a compensation mechanism if the developer misses it without valid cause — a meaningful improvement over pre-RERA norms.

Can I sell an under-construction flat before possession?

Generally yes, subject to the developer's transfer/assignment policy and any applicable charges — confirm this specific policy before booking if resale flexibility matters to you.

Is GST always applicable on under-construction flats?

Typically yes, on the construction component, whereas ready-to-move properties with a completion certificate are usually exempt — confirm current applicable rates with a tax advisor.

How do I check if a developer has delivered past projects on time?

Look at the developer's completed project history and possession track record — a long-established group with multiple delivered projects offers more evidence than a first-time developer.

Should I be worried if construction looks slower than expected during a site visit?

It's worth raising directly with the developer and comparing actual progress against the RERA-filed timeline rather than assuming the worst from a single visit.

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