Priya found what seemed like a perfect apartment in Pune. Great location, modern look, and an amazing price. She quickly made an offer. Six months later, she learned the builder didn’t have proper RERA registration. Construction had stopped, and her money was stuck. A 2024 report shows that 32% of Indian homebuyers face problems because they didn’t check everything properly before buying.
Buying property is a big decision. Here are seven warning signs that should make you stop and think carefully before you sign any papers.
- No RERA Registration or Fake Papers
RERA registration is a must for all residential projects with more than 500 square meters or eight apartments. But many builders skip this step or show fake certificates.
Property expert says, “RERA registration means the builder is accountable. Without it, you have no legal protection.”
At Houssed, we check RERA registration for every property listing since we started in 2022. When you look at properties yourself, go to your state’s RERA website and check the registration number. Don’t just believe what the salesperson shows you. Some people use fake documents. Check the approval date, when the project should finish, and if anyone has complained about the builder.
- Builder Keeps Changing the Completion Date
A 2017 survey found that 62% of under-construction housing projects across 50 cities in India were delayed. Notice how the builder talks about timelines. Do they give clear dates, or do they use confusing legal words?
Watch out for these signs: very slow construction even after many years, the builder keeps pushing back the completion date, or this builder has delayed other projects before. As property consultants, we see that unclear timelines usually mean the builder has money problems or permission issues. Ask for written progress reports and visit the site yourself.
- Price is Much Lower Than Other Properties
If a 2BHK apartment costs 30% less than similar homes nearby, something is wrong. Low prices often mean problems like: unclear ownership papers, missing permissions, building defects, or the builder needs money urgently.
A property expert explains, “There’s always a reason for cheap prices. Sometimes it’s okay, but usually it means something is wrong with the property.”
Check if the land ownership is clear, verify all permissions are in place, and find out if the builder is financially stable. Houssed checks property titles and builder backgrounds to remove problem listings. We make sure our builder-direct properties are good deals, not just cheap prices.
- Builder Refuses to Show All Documents
Good, honest builders will happily give you all documents: approved building plans, ownership papers, tax receipts, completion certificates, and details about promised facilities.
If the seller avoids showing documents, wants to keep things verbal instead of written, or pushes you to decide quickly, don’t buy. RERA rules say builders must be transparent. There’s no good reason to hide documents.
Review all papers with a property lawyer. Pay special attention to encumbrance certificates that show if the property has any loans or legal problems. Experts say 15-20% of property fights in India happen because of hidden problems that buyers could have found earlier.
- Builder Has a Bad History
Don’t just look at the property. Check the builder’s past work. Are people happy with their previous projects? Did they finish on time? Are there any court cases against them?
Check RERA complaint websites, consumer forums, and social media groups. If a builder has many complaints, RERA violations, or unfinished projects, stay away.
Houssed carefully checks all developers before showing their projects on our platform. We have said no to many builders who had concerning track records. This protects buyers from unreliable developers.
- Hidden Charges That Aren’t Clear
The price you see is not the final price. You’ll also pay: overall registration cost including stamp duty, GST on new properties, club membership fees, infrastructure charges, maintenance deposits, and parking costs.
Studies show these hidden costs can add 15-25% to the advertised price. Some builders show low prices but then charge extra for things like “better location” or force you to buy expensive extras. Ask for a complete written list of all costs. If the builder can’t give you this clearly, look at other options.
- Construction Site Shows No Real Progress
For properties still being built, you must visit the actual site. Don’t rely only on photos or virtual tours. Look at the construction site carefully.
Warning signs include: very little work happening even though months have passed, old construction methods, workers saying they don’t get paid regularly (the builder has money problems), or other unfinished projects by the same builder nearby.
An expert from Colliers India says, “Site visits show the truth. Active sites are busy with materials, workers, and visible progress. Sites with no activity mean trouble.”
We’ve seen cases where buyers were shown nice model apartments in one place, but the real project site had barely started. Verified listing platforms like Houssed help buyers get accurate, current information instead of just builder promises.
Making Smart Buying Decisions
These seven warning signs will help you make careful decisions when buying property. Good builders welcome questions and checks because transparency builds trust. If anyone resists showing documents or gets upset when you verify things, that’s a problem.
Since 2022, Houssed has worked to solve these problems by creating a platform with verified, RERA-compliant, builder-direct listings. We focus on transparency, careful checking, and direct builder connections. This removes many issues that happen with traditional property buying.
Whether you’re buying your first home or you’re an experienced investor, watching for these red flags can save you from big mistakes. Trust your gut feeling, check everything yourself, get professional help when needed, and don’t rush. Your dream home should be based on honesty and transparency, not on warning signs you chose to ignore.
