Verify the Developer's Track Record
Before anything else, investigate the developer. A builder's history is more revealing than their sales pitch. Look for their portfolio of completed redevelopment projects, not just new constructions. A developer experienced in redevelopment understands
the specific complexities, from handling existing society members to securing approvals. Visit their past projects and speak to residents about their experience with construction quality, handover timelines, and post-possession support. A developer with a history of significant delays, financial instability, or disputes is a major red flag. Financial strength is crucial; an undercapitalized developer might stall or abandon the project, leaving you in a lurch.
Scrutinise the Land Title and Ownership
A clear and marketable title is the foundation of a safe property investment. This involves a thorough examination of the chain of ownership documents, ideally for the last 30 years, to ensure there are no legal disputes or conflicting claims. The most critical document is the Conveyance Deed, which confirms that the land and building are legally owned by the housing society. In its absence, check for a Deemed Conveyance order. A lawyer should also conduct a title search to produce a Title Report, confirming the land is free from any legal encumbrances or pending litigation.
Check for RERA Registration and Compliance
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a buyer's most important safeguard. Redevelopment projects that involve the sale of new flats must be registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA). You can verify the project's registration number on the MahaRERA website. This portal provides crucial details like the project's approved plans, completion timelines, and the developer's background. RERA ensures that the developer is accountable for the promised delivery dates and specifications, offering you a formal channel for grievance redressal if things go wrong.
Review the Development Agreement
The Development Agreement (DA) is the contract between the housing society and the developer, and it governs the entire project. While you are not a direct party to this agreement as a new buyer, its terms will directly impact you. The DA outlines crucial details such as the project timeline, penalties for delays, specifications of the new building, and the obligations of the developer. It's also important to check the Permanent Alternate Accommodation Agreements (PAAA) made with the original society members, as these detail their entitlements, including rent for temporary accommodation and the specifics of their new flats.
Inspect All Municipal Approvals
A project's legality hinges on a series of municipal approvals. Do not take the developer's word for it; ask to see the documents. The key approvals to check are the Intimation of Disapproval (IOD) and the Commencement Certificate (CC) from the Brihanmumbai Municipal Corporation (BMC). The CC gives the legal permission to start construction. Also, verify the approved building plans to ensure the flat you are buying and the overall construction conform to what the authorities have sanctioned. Missing or non-compliant approvals can lead to the project being stalled or even facing demolition orders.
Confirm the Occupancy Certificate (OC) Status
The Occupancy Certificate (OC) is the final and most critical approval issued by the BMC. It certifies that the building has been constructed as per the approved plans and is safe for habitation. Never take possession of a flat in a building that has not received its OC. Without an OC, your occupancy is technically illegal, and you may face difficulties in getting basic utilities like water and electricity connections. It also complicates future resale of the property. For completed projects, the OC is non-negotiable. For under-construction ones, ensure it's a key deliverable in your agreement.
Understand the Society's Consent and Dynamics
Redevelopment can only proceed with the consent of the housing society's members. As per the latest rules, a minimum of 51% of members must agree to the redevelopment. It is wise to check the society's resolutions to confirm that the proper consent levels were achieved and that the developer's appointment was transparent and properly documented. Ongoing disputes between dissenting members and the developer can lead to litigation and significant project delays, which is a risk you inherit as a new buyer.
