by Deepak Sawant 
Don’t Make These Mistakes When Buying an Under-Construction Flat in Mumbai Before Watching This!
Mumbai’s real estate market is booming. With new projects launching every month and sleek advertisements promising the perfect dream home, it’s easy to get swept up in the excitement. Especially when you see a beautiful under-construction apartment in a prime location, at a tempting price.
But wait—before you hand over your hard-earned money, there are some serious things you need to know. A small mistake today can cost you lakhs of rupees and years of stress.
Let’s walk through a typical scenario and see where most buyers go wrong—and how you can protect yourself.
A Dream Flat, A Perfect Price… But What’s the Catch?
Imagine this: You’re looking for a 2BHK flat in Mumbai. You visit a site, meet the builder, and everything looks great. The sample flat is impressive. The location is ideal. The sales manager offers you a final price of ₹80 lakhs after a “special discount.”
You say yes. You’re ready to book. You tell the builder you’ll pay ₹8 lakhs as a booking amount and want to sign a written agreement soon. Everything seems fine.
But then, the builder says something odd.
“We’ve completed 40% of the project. To sign a written agreement, you need to pay 40% of the total cost—₹32 lakhs—now.”
Hold on. Is that even legal?
Know the Law: What RERA Says About Payments
This is where many buyers make a costly mistake.
According to Section 13 of the RERA Act (Real Estate Regulatory Authority), a builder cannot ask you for more than 10% of the property cost before signing a registered agreement for sale.
Let’s repeat that: The builder can only collect up to 10% of the apartment cost as a booking amount before you both sign a proper legal agreement.
In this case, for an ₹80 lakh flat, the builder is only allowed to collect ₹8 lakhs before any paperwork. Asking for ₹32 lakhs at this stage is completely against the rules.
Sadly, many buyers don’t know this. They trust the builder blindly or feel pressured and end up paying more than they should.
Why This Matters: Real Risks Behind Early Payments
You might be thinking, “What’s the big deal? I’m going to buy the flat anyway.”
But there’s a lot at stake.
- No written agreement = No legal protection. If the builder delays the project, changes the layout, or even cancels the flat, you’ll have no strong legal support.
- Delays are common. Many under-construction projects in Mumbai face delays due to permissions, funding, or contractor issues.
- Builders might go bankrupt. If the project is not RERA-registered, your money might be lost forever.
- Hard to recover money later. Without a legal agreement, chasing your refund is almost impossible.
This is why the RERA rule exists—to protect buyers like you from being exploited.
How to Handle Builders Who Pressure You
What if the builder insists on collecting more than 10%?
Stay calm, and say something like:
“As per Section 13 of RERA, I’ll pay only ₹8 lakhs now. We can sign a registered agreement first before I make further payments.”
If the builder refuses or tries to argue, walk away. A genuine developer will always follow the law.
You can also:
- Ask for the project’s RERA registration number.
- Verify the builder and project on the official RERA Maharashtra website.
- Consult a real estate lawyer before signing anything.
Don’t Be Rushed: Common Tricks Builders Use
Salespeople are trained to create urgency. They’ll say:
- “Only 2 flats left at this price!”
- “Offer valid for today only!”
- “Price will go up next week!”
Ignore the pressure. Take your time. Review all documents. Think long term. This is a huge investment, and it deserves careful planning.
Checklist Before You Book an Under-Construction Flat in Mumbai
Here’s a quick checklist to keep you safe:
✅ Is the project RERA registered?
✅ Have you received the RERA certificate and project details?
✅ Are you paying only 10% or less before signing a legal agreement?
✅ Has the builder shown you the draft agreement for sale?
✅ Have you verified the builder’s track record?
✅ Have you visited the actual construction site?
✅ Have you read the fine print in all documents?
✅ Have you taken legal advice if needed?
If you answer “yes” to all these, you’re likely on the right track.
Final Thoughts: Be a Smart Buyer
Real estate in Mumbai can be tricky, especially when dealing with under-construction homes. But that doesn’t mean you have to get trapped.
With laws like RERA in place, home buyers now have more protection than ever. But that protection only works if you know your rights and refuse to bend to illegal demands.
Remember, your dream home should bring you joy—not legal headaches or financial loss.
So, the next time a builder asks you to pay a large amount without signing a proper agreement, you’ll know what to say:
“Sorry, but I follow RERA—and you should too.”
Frequently Asked Questions (FAQs)
Q: Can a builder legally ask for more than 10% before signing an agreement?
A: No. Under RERA Section 13, they cannot collect more than 10% before signing a registered agreement for sale.
Q: What should I do if I already paid more?
A: You should immediately consult a legal expert and file a complaint with the RERA authority in your state.
Q: How can I check if a project is RERA registered?
A: Visit the Maharashtra RERA website and search for the project using its name or registration number.
Q: Are all builders in Mumbai RERA compliant?
A: No. Many are, but not all. Always verify before making any payment.
