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Not in India, developers can sell before building but the money is in an escrow and released as the construction progresses. Also penalties and interest on any delays. I don't think selling unbuilt buildings is the bad thing, it's having no regulations or protections alongside that.

https://en.m.wikipedia.org/wiki/Real_Estate_(Regulation_and_...

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China has

> the money is in an escrow and released as the construction progresses.

too.

The problem is it doesn't work: the fund release schedule can't be perfectly aligned with each stage of the constitution on a cost basis. There's a large amount of unfinished buildings (rather than not started at all) at a certain stage - it's the point when the_amount_of_fund_released - the_construction_cost_so_far is maxed.

I like the USA solution more - no mortgage for unfinished buildings. Developers can still sell it, but good luck.

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