RERA Payment Schedule for Under-Construction Flats – Milestone-Wise Breakdown 2026

The RERA payment schedule fundamentally changed how under-construction property purchases work in India — replacing the old system of large upfront builder demands with a transparent, milestone-linked structure that protects buyer funds. Understanding exactly how each milestone triggers payment, and how this schedule interacts with home loan disbursement, prevents both overpayment and unexpected loan processing delays.

This page covers:

• The 10% upfront cap — RERA's core payment protection
• Complete milestone-wise payment schedule breakdown
• Why this structure matters for buyer fund security
• How home loan disbursement follows the RERA schedule
• What to verify in your sale agreement's payment clause
• Your rights if a builder demands payment out of sequence
• Coordinating your home loan provider with construction milestones

The RERA payment schedule is a structured plan mandated for developers selling under-construction property, outlining the specific payments due at defined stages of the construction process. This schedule protects the buyer by ensuring the builder only collects money for completed work — the builder must deliver on each construction phase before receiving the corresponding payment instalment.

Rather than paying upfront or in large lump sums, the buyer makes payments tied directly to construction progress, with each milestone predefined and legally required to align with actual, verifiable progress on the ground.

Before RERA, many builders demanded hefty sums upfront — sometimes 20%, 30%, or more of the total property cost — before any construction had meaningfully progressed, leaving buyers financially exposed if projects stalled or were abandoned.

RERA specifically caps the amount a builder can collect as a booking amount before the formal sale agreement is signed at 10% of the total property cost. Only after the sale agreement is executed can the builder begin collecting the remaining payments, and even then, strictly according to the construction-linked milestone schedule — not at their discretion.

While exact percentages vary by builder and project, the standard RERA-compliant milestone structure typically follows this sequence:

Each of these stages must be independently verifiable — meaning a builder cannot claim a "superstructure complete" payment if the structural framework is genuinely still incomplete, since this would constitute a violation of the RERA-mandated schedule.

• Transparency: Buyers can see exactly when and how much they need to pay at each stage, eliminating ambiguity and protecting against arbitrary demands.
• Fund security: Since payments are tied to verified construction progress, buyers' funds are being deployed responsibly rather than collected speculatively ahead of actual work.
• Builder accountability: By tying payments directly to construction milestones, builders are financially motivated to complete each phase on schedule in order to trigger the next payment instalment — creating a built-in incentive structure for timely delivery.
• Agreement-backed enforceability: RERA mandates that the payment schedule be explicitly stated in the sale agreement, meaning both parties are contractually bound to this structure — a builder demanding payment outside this schedule is in direct breach of both RERA and the signed agreement.

For buyers financing their purchase through a home loan, the RERA payment schedule directly shapes how your lender releases funds. Rather than disbursing the entire sanctioned loan amount at once, banks and financial institutions release funds in instalments aligned with the same construction milestones outlined in your RERA-compliant sale agreement.

For example, if your bank has approved a loan covering 80% of the property's value, they will release portions of that amount corresponding to each construction stage — foundation completion, superstructure completion, and so on — rather than transferring the full amount upfront.
 

Critical step: It is essential to inform your lender about the specific RERA payment schedule for your chosen project before the loan process begins, as this directly determines your lender's own disbursement plan. Lenders may also have their own internal verification requirements at each milestone, so discussing this in advance helps avoid unexpected delays when a payment becomes due.

Before signing, confirm that your sale agreement explicitly states:

• Each specific milestone and its corresponding payment percentage
• That milestones are tied to verifiable, physical construction progress — not calendar dates alone
• That the initial booking amount collected does not exceed 10% of total property cost
• Clear language confirming you are not obligated to pay ahead of actual completed work at any stage

If any of these elements are missing or vague in your agreement, this is worth raising directly with the builder or your legal advisor before proceeding, as it weakens your RERA-backed protection.

If a builder requests payment for a milestone that has not genuinely been completed, you have the legal right to decline that specific payment until the corresponding construction stage is verifiably finished. You should:

1. Request documented evidence or a site visit confirming the claimed progress
2. Cross-check the claimed milestone against the payment schedule stated in your sale agreement
3. Formally communicate any discrepancy to the builder in writing
4. Escalate to the state RERA authority if the builder persists in demanding out-of-sequence payment

Purchasing a RERA-registered under-construction flat with a home loan becomes considerably smoother when your lender's disbursement process is coordinated with the actual milestone schedule from the outset. Bajaj Finance offers home loans from 7.25% p.a.* with amounts up to Rs. 15 Crore* and tenures up to 32 years, with disbursement structured to align with your project's construction progress. Check eligibility today.

The RERA payment schedule has fundamentally rebalanced financial risk in under-construction property purchases, ensuring buyers pay only for verified, completed work at each stage. Understanding this structure — and how it shapes your home loan disbursement — protects both your funds and your financing timeline.