Step 4 of 8: Construction-linked payments — You pay in stages as the building goes up.
Step 4 of 8
Construction-linked payments
You pay in stages as the building goes up.
Most of the price is paid in instalments tied to construction stages — foundation, each slab, brickwork, finishing. The builder sends a demand letter at each stage. If you have a home loan, the bank disburses its share against the same demands, after its own legal and technical check of the project. Under the RERA Act, 70% of the money builders collect from buyers must go into a separate project account and be withdrawn in proportion to work done, as certified by an engineer, an architect and a chartered accountant.
The money at this step
The bulk of the price, in instalments over the construction period, each against a demand letter. With a loan, you usually pay interest on what has been disbursed so far — often while still paying rent.
Where Pinly helps
Each quarter's progress update as filed, with its date, is on the free Filing Record. Money collected from buyers and withdrawn, quarter by quarter, is in the Pinly report.
Find your project's recordHow long this usually takes
Ongoing — typically 2–4 years for an under-construction flat, until completion.
You are done with this step when
The building is complete, your instalments up to completion are paid, and every payment has a receipt against a demand letter.
Your next step · Construction-linked payments
Check each demand letter against the progress the builder filed
Every quarter the builder files a progress update with K-RERA. Before you release an instalment, compare the stage being billed with the latest filing and with the site.
15 minutes per demand
Documents at this step
Demand letters
What was billed, for which stage, and when.
Payment receipts
Proof of every instalment.
Loan sanction letter and disbursement statements
What the bank has paid and what you owe on it.
Tripartite agreement (you, the builder, the bank), if your bank uses one
Sets out who pays what if something goes wrong.
Questions to ask
- Which stage does this demand relate to, and who certified it complete?
- Is the project's RERA quarterly update for the last quarter on the register?
- If the bank's valuation is lower than the agreement value, who covers the gap?
- How much notice will I get before each demand?
Traps at this step
Paying ahead of construction
A schedule that collects most of the money before the structure is up shifts the risk onto you. Pay against stages actually reached.
Not reading the quarterly filings
The builder files progress with K-RERA every quarter. If the filed progress and the demand letters disagree, ask why.
Losing the paper trail
Years of instalments produce dozens of letters and receipts. Without them, the sale deed and any later dispute get harder.
This is general guidance to help you plan, not legal, tax or financial advice. Process, charges and stamp duty change, and vary by bank, builder and authority. Have a property lawyer read your documents, and confirm every figure before you transact. Pinly does not verify title, and does not perform legal due diligence on your behalf.