Short answer: Before buying under-construction in Bengaluru, ask whether your phase is on K-RERA and its date has moved, whether payments follow construction, what a delay would cost you in rent and pre-EMI, how much GST you'll pay, and what the agreement says about carpet area, the OC and exit. Price the wait before you price the flat.
- The date is a risk, not a promise. In our study of East Bengaluru projects, 31.9% had moved their RERA completion date; the median shift was 9 months.
- Price the wait: rent plus pre-EMI interest over three years can pass ₹19 lakh on a ₹90 lakh flat (worked below).
- RERA caps the advance: no more than 10% before a registered agreement for sale (s.13).
- Delay interest exists, but you have to claim it. Karnataka's rate is SBI's highest MCLR plus 2%.
- Our CLOCK test: compliance, ledger, overrun, cost, keys.
- C: Is the project compliant?
- L: Does the ledger protect you?
- O: What happens if it overruns?
- C: What will it really cost?
- K: Will you get the keys you paid for?
- Worked examples
- The CLOCK test (our framework)
- Before-you-sign checklist
- CA note
- Lawyer note
- Frequently asked questions
- Talk it through with acre&key
- Sources
An under-construction flat costs less on paper because you're carrying the time risk. These 20 questions help you put a number on that risk. For the earlier filter, see our token checklist.
C: Is the project compliant?
- Is your phase, not just the project name, registered on K-RERA, and does the promoter's name match your agreement? Our RERA lookup guide shows how.
- What completion date did the promoter register, and has it changed?
- Are the sanctioned plan and commencement approvals uploaded?
- Does the RERA page disclose any litigation? Our project review method covers how to read it.
L: Does the ledger protect you?
- How much is due before a registered agreement? RERA caps it at 10% of the cost (s.13).
- Is the payment plan linked to construction stages, not calendar dates?
- Which account do you pay into? Promoters must put 70% of amounts realised from buyers into a separate account for that project (s.4(2)(l)(D), RERA Act).
- Does the progress in the quarterly updates match the stage being billed?
O: What happens if it overruns?
- Have this promoter's past project dates held? Read their earlier RERA pages.
- What does the agreement say about delay interest? Karnataka's rate under Rule 16 is SBI's highest MCLR plus 2% (Karnataka RERA Rules).
- Does the agreement add delay excuses beyond what the Act allows? Ask your lawyer.
- If you want to exit, what's deducted? RERA protects you when the builder defaults, not when you change your mind.
C: What will it really cost?
- Is GST included in the quote? It's 5% on an under-construction flat (1% for affordable housing) (our full cost guide).
- Can you carry rent and pre-EMI together until possession?
- Are parking, club, deposits and maintenance advance on the cost sheet?
- Is there an escalation clause that lets the price rise?
K: Will you get the keys you paid for?
- Is the carpet area stated in the agreement, and how are variations handled? See our carpet area explainer.
- Who applies for the OC, and when? Without one, utilities aren't connected.
- Does the agreement keep the five-year defect window under s.14(3)?
- When will the unit-wise khata be ready? Our possession checks cover handover.
Worked examples
Worked example 1: what the wait costs
Illustrative figures: a ₹90,00,000 under-construction flat with possession in 3 years. The loan is ₹67,50,000 (75%, the RBI cap above ₹75 lakh), disbursed evenly, at 8.5%. You rent at ₹30,000 a month meanwhile.
| Cost before possession | Working | Amount |
|---|---|---|
| GST | 5% × ₹90,00,000 | ₹4,50,000 |
| Rent | ₹30,000 × 36 months | ₹10,80,000 |
| Pre-EMI interest | Average ₹33,75,000 × 8.5% × 3 years | ₹8,60,625 |
| Total | ₹23,90,625 |
Rent and pre-EMI alone come to ₹19,40,625. A ready flat skips these but asks for full EMIs from day one, about ₹58,578 a month on the same loan over 20 years. Run both against your income with our budget page.
Worked example 2: a nine-month delay
Nine months is the median shift in our East Bengaluru delivery study. Say you've paid ₹60,00,000 by the due date, ₹45,00,000 of it from the loan.
| Item | Working | Amount |
|---|---|---|
| Extra rent | ₹30,000 × 9 | ₹2,70,000 |
| Extra pre-EMI | ₹45,00,000 × 8.5% × 9/12 | ₹2,86,875 |
| Cost of the delay | ₹5,56,875 | |
| Delay interest, if claimed | ₹60,00,000 × 10.95% × 9/12 | ₹4,92,750 |
10.95% is SBI's three-year MCLR of 8.95% (from 15 Oct 2026) plus 2%, our reading of Rule 16. Even if you win, the interest doesn't fully cover the delay here, and you have to claim it. Our delayed possession guide explains the process.
The CLOCK test (our framework)
| Letter | Question it answers | Red flag |
|---|---|---|
| C: Compliance | Is the phase registered and approved? | Phase missing, names don't match |
| L: Ledger | Is your money tied to progress? | Calendar-linked plan, more than 10% before agreement |
| O: Overrun | What if it's late? | Date already moved, weak delay clause |
| C: Cost | Can you carry the wait? | Rent plus pre-EMI over 50% of take-home |
| K: Keys | Will handover be clean? | No OC plan, vague carpet clause |
Two or more red flags means pause, or compare a ready flat.
Before-you-sign checklist
- [ ] K-RERA page for your phase saved as a PDF
- [ ] Registered date and any extensions noted
- [ ] Payment plan matched to construction stages
- [ ] Cost sheet with GST and every extra
- [ ] Rent plus pre-EMI worked out to possession, plus 9 months
- [ ] Delay, exit and carpet clauses read by your lawyer
CA note
GST, and TDS on each instalment, depend on your facts. Ask a CA.
Lawyer note
Delay, exit, escalation and variation clauses need a property lawyer's reading before you sign.
Frequently asked questions
Whether your phase is on K-RERA, whether the date has moved, how payments are linked, what a delay costs you, the GST, and the carpet area, OC and exit terms.
In our study of 2,342 projects in the Bengaluru East, Anekal and Hosakote taluks, 31.9% had moved their RERA date, mostly through COVID relief. The median shift was 9 months.
No more than 10% of the cost before a registered agreement for sale, under s.13 of the RERA Act.
5%, or 1% for affordable housing. It's nil only if you pay the entire price after the completion certificate or first occupation. Ask a CA.
Interest on the part of the loan disbursed so far, paid before full EMIs start. It doesn't reduce your principal, so it's a cost of waiting.
Yes, under s.18 you can stay and claim interest for each month of delay, or withdraw with a refund and interest. Karnataka's rate is SBI's highest MCLR plus 2%.
Usually, because money follows progress. Check that the stage being billed matches the quarterly updates on K-RERA.
Price both. Add GST, rent and pre-EMI to the under-construction price, plus a delay buffer, and compare it with the ready flat's price and EMI.
Sources
Checked 19 Oct 2026.
- Real Estate (Regulation and Development) Act 2016, ss.4(2)(l)(D), 13, 14(3), 18, K-RERA copy: https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf
- Karnataka RERA Rules 2017, Rule 16: https://rera.karnataka.gov.in/resources/staticpage/FinalRERA_Rules-2017.pdf
- K-RERA project search: https://rera.karnataka.gov.in/viewAllProjects?language=en
- SBI, MCLR effective 15 Oct 2026: https://sbi.bank.in/web/interest-rates/interest-rates/mclr
- GST Council, FAQ on real estate: https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- RBI Master Circular, Housing Finance (LTV): https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12824
- acre&key, East Bengaluru RERA completion dates study (K-RERA data, Oct 2026)
