Real Estate for Gen Z | EP 07 By Verified.RealEstate
Last time, we decoded grounds, cents and acres, so you can compare plot sizes and prices without turning your land hunt into a maths test.
This time, you’re comparing flats. A new launch may give you first pick of the units. A finished flat lets you walk through the exact home. The buying stage changes what you can inspect, when you can move in and what GST you may pay.
| What you’re buying | The upside | What to check | GST on the flat |
|---|---|---|---|
| New launch | You may have more choice of floor, layout and facing. | You may be choosing from plans or a sample flat. Check approvals, Tamil Nadu RERA registration where required, and the promised handover date. | If sold under construction, generally 5%, or 1% for a qualifying affordable flat. |
| Under construction | You can see site progress and may pay in stages. | Handover can slip. Ask for payments tied to verified construction milestones. | Generally 5%, or 1% for a qualifying affordable flat. Ask whether the quote includes GST. |
| Finished flat from the builder | You can inspect the exact unit and may move in sooner. | Choice may be limited. Verify the applicable completion or occupancy documents for your block. | No GST on the flat sale if the builder receives the entire price after the completion certificate is issued, where required, or after first occupation, whichever comes earlier. |
| Completed resale flat | You can inspect the flat and ask residents about upkeep. | Check the seller’s title, any outstanding loan, association dues and repairs. | No GST on the resale price. Separately billed taxable services, such as brokerage, can carry their own GST. |
A new launch is a sales stage, so it can also be under construction.
Before you pay the builder
Under RERA Section 13, the promoter must enter into and register the agreement for sale before collecting more than 10% as an advance or application fee. The agreement must spell out when and how payments are due.
Check the late-payment clause for the interest rate on overdue instalments, when interest starts and whether there’s a grace period.
Check when the builder can cancel your allotment for missed payments and how much notice or time to catch up the agreement gives you.
No GST on the sale can still mean a higher price
An ₹80 lakh under-construction quote before 5% GST comes to ₹84 lakh. A finished flat quoted at ₹89 lakh with no GST on the sale still costs more. The finished asking price may reflect taxes the builder paid on construction inputs, market demand and the fact that you can move in sooner. Both figures are illustrative and exclude stamp duty, registration and separate fees.
For Smooth Transactions
Buying at launch, midway through construction or on resale? Verified.RealEstate helps you know what to check before you pay a token. We can help verify project approvals and Tamil Nadu RERA registration where applicable, check completion documents for a ready-to-move flat, and review the seller’s title and encumbrance records for a resale. You’ll know what the paperwork supports and what still needs a closer look before you commit.
Read our full guide to GST on flats
Up next, we’ll decode Tamil Nadu’s Anywhere Registration for eligible first sales of flats and plots.