Ready-to-Move vs Under-Construction Property: Legal Pros & Cons You Must Know Before Buying

Introduction

Buying a flat is a milestone. But a critical question arises for every buyer:

Should you go for a ready-to-move-in flat or an under-construction property?

While both options come with distinct advantages, the legal implications, risks, and due diligence steps differ drastically. This blog breaks down the legal pros and cons of both choices—especially for first-time home buyers, real estate investors, and NRIs planning to invest in areas like New Town, Salt Lake, and Kolkata.

✅ Ready-to-Move-in Flats: Legal Pros & Cons

A ready-to-move-in flat is one where construction is completed, possession is granted, and the buyer can immediately shift in or start renting it out.

Legal Advantages of Ready-to-Move Properties

1. Clear Title & Immediate Possession

• You get to verify the actual property ownership, completion certificate, occupancy certificate, and municipal approvals.

• No uncertainty over possession timelines.

2. No GST

• As per current tax laws, GST is not applicable on ready-to-move properties that have received Completion Certificate (CC).

3. What You See Is What You Get

• The buyer can physically inspect the flat, locality, and building condition—making legal verification easier.

4. Easier to Conduct Legal Due Diligence

• Your lawyer can perform a property title search, verify the chain of ownership, check mutation, and confirm that the flat is free from encumbrances.

Legal Disadvantages of Ready-to-Move Properties

1. Higher Cost

• Per square foot prices are typically 10–20% higher than under-construction properties.

2. Risk of Illegal Construction

• Many “ready” flats, especially in developing zones like New Town and Rajarhat, are illegally built without proper sanction plans. Without legal verification, you risk demolition or penalties.

3. No Time to Rectify Legal Irregularities

• Once you purchase, any pending litigation, land disputes, or illegalities become your burden.

🏗️ Under-Construction Flats: Legal Pros & Cons

An under-construction property is still being developed and usually offers staged payment plans and relatively affordable pricing.

Legal Advantages of Under-Construction Properties

1. Lower Cost with Flexibility

• Price per square foot is often lower, especially during pre-launch stages.

• Payment plans are staggered across construction milestones, helping with financial planning.

2. RERA Registration is Mandatory

• Builders must register under RERA (Real Estate Regulation and Development Act). This adds a layer of transparency and legal protection for the buyer.

3. Scope for Customisation

• Buyers may request minor changes in layout, flooring, or fittings during the construction phase.

Legal Disadvantages of Under-Construction Properties

1. Possession Delay Risk

• Despite RERA, delays of 1–2 years are still common, especially in West Bengal where monitoring is lax.

2. Developer Fraud or Abandonment

• Numerous cases in New Town and Salt Lake Extension areas involve builders collecting funds but failing to deliver.

📌 Example: A 2022 Calcutta High Court case involved a Rajarhat builder promising possession within 24 months but defaulting for over 5 years. Buyers had to litigate for refund and interest.

3. Hidden Encumbrances on Land

• Builders may start projects on land that is disputed, mortgaged, or under acquisition. Without legal due diligence, the buyer’s money is at risk.

4. GST Applies

• 5% GST is applicable (without Input Tax Credit) for under-construction flats, adding to the total cost.

What Legal Due Diligence Must Be Done—For Both Types

Whether buying ready or under-construction property, the following legal checks are essential:

For Ready-to-Move Flats

• Title search report (at least last 30 years)

• Occupancy Certificate (OC)

• Completion Certificate (CC)

• Mutation & Property Tax clearance

• Chain of documents (including Sale Deed, Conveyance, etc.)

• Verification of No Dues from Society or Builder

• Encumbrance Certificate

For Under-Construction Flats

• RERA Registration Number & Status

• Sanctioned Building Plan

• Commencement Certificate

• Land Title Report (verify if land is freehold, residential, and owned by builder)

• Development Agreement and Power of Attorney of builder

• Agreement for Sale vetted by legal experts

How Our Law Firm Can Help

At KHA ADVOCATES, we’ve assisted hundreds of NRI and first-time buyers in verifying and registering properties across Kolkata. Our services include:

1. Property Title Verification

Get a comprehensive title search report with legal opinion—ensuring you don’t invest in disputed or encumbered flats.

2. Agreement Drafting & Review

We vet or draft Agreement for Sale, Sale Deed, or Builder-Buyer Agreement to protect your interests.

3. RERA Compliance & Builder Due Diligence

We check the track record, RERA filings, and legal standing of the builder and construction status.

4. Property Registration Support

Our team handles property registration, stamp duty calculation, and sub-registrar office coordination on your behalf—even without your physical presence.

Conclusion: Choose Wisely, Legally

The choice between ready-to-move and under-construction properties must balance your budget, timeline, and risk appetite. But one thing is non-negotiable—legal due diligence.

In Kolkata’s fast-growing property landscape, especially in New Town, Rajarhat, and Salt Lake, blind trust on builders can cost you lakhs. But with the right legal partner, you buy safely, confidently, and profitably.

📞Need Legal Help Before Buying a Flat in Kolkata?



👉 Book a consultation with our real estate legal experts

👉 Call us at 94-777-5-888-5

👉 WhatsApp us at 8101-555-666

👉 Email: contact@khaadvocates.in

👉 Visit: www.khaadvocates.com