Individual builder without RERA registration

Paying an individual builder without RERA registration requires extra caution — because you lose the legal protections that RERA offers (like guaranteed possession timelines, quality, and refund clauses).

Here’s a safe payment guide and what you should definitely do before paying:

⚠️ Risks Without RERA Registration

• No accountability for delays or quality.
• Refunds become difficult if builder defaults.
• No penalty for false promises or change of plan.
• Limited legal recourse without going to consumer court (time-consuming).

✅ Safe Payment Tips for Non-RERA Individual Builders

📝 1. Do Thorough Legal Verification

• Title deed in builder’s name? (Check with lawyer)
• Construction approval from local body? (Municipality / Panchayat / HMDA / DTCP)
• Encumbrance certificate (EC) – No dues on land?
• Land conversion done (residential, not agricultural)?
• Verify layout & building plan approvals.

🔍 Pro Tip: Hire a property lawyer for ₹5K–₹15K to verify everything.

💰 2. Never Pay Large Amounts Upfront

Break the payment into milestones based on work completion, such as:

Stage% Payment (Suggested)Token / Booking5%Agreement + Land Documents Cleared10–15%Foundation / Basement10–15%Roof Slab (each floor)10–15%Brickwork Completion10%Plaster + Electrical/Plumbing10%Flooring + Painting10%Final Handover (with all certificates)10%

📑 3. Always Have a Written Agreement

Even if not under RERA, you must have:

• Builder-Buyer Agreement with:
• Property details
• Total cost with breakup
• Payment terms
• Completion timeline
• Penalty for delays
• Warranty clause (structural for 5 yrs as per RERA standard)
• Mention borewell, compound wall, tiles, electrical points, etc.
• Get it notarized or registered if possible.

📦 4. Ask for and Keep All Receipts

• Each payment must be:
• Via bank transfer / cheque (no cash if possible)
• With a receipt and builder’s signature
• With GST included, if applicable

🔐 5. Ask for Collateral or Security

If you’re paying large amounts early:

• Ask for part ownership transfer (like land registration first)
• OR keep a post-dated cheque/security agreement in case of non-completion

🧾 6. Avoid These Mistakes

❌ Paying more than 20–30% without any registration

❌ Trusting verbal promises (always document everything)

❌ Ignoring construction approvals and legality

❌ Accepting only “Builder’s format” of agreement — always have it legally reviewed

👷 7. Ask for Builder Commitments in Writing

• Borewell depth and water guarantee
• Electrical fitting brands
• Flooring material
• Wall thickness, doors/windows quality
• Handover date + compensation clause for delay

📌 Optional: Advance Agreement Format

Would you like a:

• Sample Builder Agreement Draft (for individual house)?
• Printable Payment Milestone Tracker?
• Legal verification checklist before payment?