10-Point Checklist Before Making a Property Down Payment
A down payment is hard to reverse once it's paid. Here are the ten things worth verifying before you commit your money to any property — under-construction or resale.
Introduction
Most buyers spend weeks comparing localities, shortlisting projects, and negotiating price — and then rush the final step. The down payment gets paid in a hurry, often under pressure from a "limited units left" pitch, before some fairly basic checks have actually been done.
The problem is that a down payment, once paid, is difficult to recover in full if something turns out to be wrong later — a title dispute, a missing approval, or a builder's track record that didn't hold up to scrutiny.
None of the checks below take more than a few days collectively. All of them are far easier to do before you pay than after.
1. Verify the Title of the Property
Before anything else, confirm that the seller or developer actually has clear, marketable title to the property. For resale properties, this means checking the chain of ownership documents going back several years. For under-construction projects, it means confirming the land was legally acquired by the developer, free of disputes.
An encumbrance certificate is the standard way to confirm there are no outstanding loans, legal claims, or disputes registered against the property.
2. Check RERA Registration
For any under-construction project, look up the RERA registration number directly on your state's official RERA website — not just on the developer's brochure. This confirms the promised possession date, sanctioned layout, and whether any complaints have been filed against the project.
If a project claims registration is "in process," treat that as a reason to wait, not a reason to pay.
3. Confirm Approved Layout and Land Use
Verify that the project has all necessary approvals — layout plan sanction, environmental clearance where applicable, and confirmation that the land is zoned for residential use. Buying into an unauthorized or partially approved project can create serious complications at the possession and registration stage.
4. Research the Developer's Track Record
Look into how many of the developer's previous projects were delivered on time, and check for pending litigation, buyer complaints, or delayed possessions on record. A developer's history with past projects is one of the more reliable predictors of how your project will go.
Talking to residents in the developer's earlier, completed projects — if possible — often reveals more than any brochure will.
5. Understand the Total Cost, Not Just the Base Price
The quoted price is rarely the final number. Factor in stamp duty, registration charges, GST (for under-construction properties), maintenance deposits, parking charges, and any other development or infrastructure charges before deciding what you can actually afford.
Many buyers commit to a down payment based on the base price alone, only to realize later that the total cost is meaningfully higher.
6. Get the Payment Schedule in Writing
Ask for a clear, written payment schedule tied to construction milestones (for under-construction properties) or to specific conditions (for resale). Verbal assurances about "flexible payment" mean little if they aren't documented in the agreement.
7. Review the Draft Agreement Before Paying
Read the buyer's agreement or agreement to sell in full before making any payment — not after. Pay particular attention to the possession date, penalty clauses for delay, refund terms if you need to exit, and any conditions that favor the seller disproportionately.
If the seller is unwilling to share the draft agreement before the down payment, that reluctance itself is worth noting.
8. Check the Refund and Cancellation Policy
Ask specifically what happens if you need to cancel after paying the down payment. Some builders retain a portion of the amount as a cancellation charge, while others may have stricter, less buyer-friendly terms. Knowing this upfront avoids an unpleasant surprise if your plans change.
9. Verify the Actual Carpet Area, Not Just the Quoted Area
Confirm the carpet area being sold, since this is now the standardized, RERA-mandated basis for pricing. If the number quoted seems inconsistent with the built-up or super built-up area typically mentioned in marketing material, ask for clarification before proceeding.
10. Confirm Home Loan Eligibility in Principle
Even if you're not applying for a loan immediately, getting an in-principle approval from a bank before paying the down payment tells you two things clearly — how much you can actually borrow, and whether the specific project is approved by lenders for financing. Some under-construction projects aren't yet approved by major banks, which can complicate financing later.
A Real-World Example
A buyer once paid a down payment on an under-construction flat after being told verbally that possession was "expected within two years." No written payment schedule or possession clause was reviewed beforehand. Eighteen months in, with construction barely at the halfway mark, the buyer discovered the project's RERA-registered possession date was actually three years out — a fact that would have been immediately visible with a five-minute check on the RERA portal before paying.
A short verification process at the start would have either avoided the booking entirely or at least set the buyer's expectations correctly from day one.
Common Mistakes Buyers Make
A frequent mistake is treating the down payment as a formality to "lock in" a good price or unit, without completing the checks above first — especially when a sales team creates urgency around limited inventory.
Another common error is relying entirely on verbal assurances about possession timelines, customization, or refund terms, none of which hold up without written documentation.
Some buyers also skip the RERA verification step specifically, assuming that if a project is being actively marketed, it must already be compliant — which isn't always the case.
Expert Tip
Treat the down payment stage exactly as seriously as the final registration. Spend a few focused days completing title verification, RERA confirmation, and a review of the draft agreement before paying anything — even if it means losing a small, non-binding discount tied to "immediate booking."
Frequently Asked Questions
Is a property down payment refundable if I change my mind? It depends on the seller's or developer's cancellation policy, which should be checked before paying. Many builders deduct a cancellation charge, and terms vary significantly.
How do I verify a property's title before paying a down payment? Request the chain of ownership documents (for resale) or the developer's land title documents (for new projects), and consider getting an encumbrance certificate to confirm there are no outstanding claims.
Should I pay a down payment before seeing the draft agreement? No. It's best to review the buyer's agreement or agreement to sell in full, including possession dates, penalty clauses, and refund terms, before making any payment.
Does RERA registration guarantee a project is risk-free? No, but it does guarantee certain minimum protections, including fund utilisation restrictions, disclosed timelines, and a grievance redressal mechanism — verifying it is still worthwhile even though it isn't a complete guarantee.
Is it necessary to get loan pre-approval before paying a down payment? It isn't mandatory, but it's a useful step. It confirms your borrowing capacity and whether the specific project is approved for financing by banks, which can otherwise cause delays later.
Final Thoughts
A down payment marks the point where a property purchase moves from "considering" to "committed." Running through this checklist beforehand doesn't cost much time, but it can save considerable money, stress, and legal complication later.
Before you transfer that amount, take the extra few days to verify title, RERA status, the draft agreement, and the total cost involved. It's a small investment of time against a decision that's genuinely difficult to reverse.
