1. Confirm the Project's RERA Registration
The Real Estate (Regulation and Development) Act, 2016 (RERA) is your first line of defence, especially for under-construction properties. Every legitimate developer must register their project with the Maharashtra Real Estate Regulatory Authority (MahaRERA).
Before you even consider booking, visit the MahaRERA website to verify the project's registration number. This portal provides crucial details like the approved project plan, promised completion date, and any legal cases against the project. If a project isn't listed, or its registration has expired, it's a major red flag. This simple check ensures the project is legally recognised and accountable.
2. Scrutinise the Property's Legal Documents
The foundation of a safe property purchase lies in its paperwork. The most critical document is the Title Deed, which proves the seller's undisputed ownership and their right to sell the property. For resale properties, you must also check the chain of previous sale agreements to ensure a clear ownership history. Another vital document is the Encumbrance Certificate; this confirms that the property is free from any pending loans, mortgages, or legal liabilities. For new buildings, ensure the developer has received the Commencement Certificate (CC), which authorises construction, and more importantly, the Occupancy Certificate (OC).
3. Insist on the Occupancy Certificate (OC)
An Occupancy Certificate is non-negotiable for any ready-to-move-in property. Issued by the municipal authority, the OC certifies that the building has been constructed as per the approved plans and is safe for habitation. Living in a building without a valid OC is illegal and can lead to penalties or even eviction notices. Furthermore, you cannot secure permanent water and electricity connections without an OC, and most banks will refuse to approve a home loan for such a property. Under RERA, a developer cannot legally hand over possession without obtaining the OC, making it a critical checkpoint for any buyer.
4. Verify Building Plans and Physical Condition
What you see should match what's on paper. Always ask for the approved building plans from the developer or seller and compare them with the actual flat and building layout. This helps identify any unauthorised construction or alterations that could cause legal issues later. Beyond the documents, conduct multiple physical visits to the property at different times of the day. Assess the quality of construction, check for any signs of water leakage or cracks, and inspect the common areas and promised amenities like the lobby, lifts, and parking spaces. If it is a resale flat in an existing society, talk to current residents about the building's maintenance and any recurring issues.
5. Calculate the Total Cost, Not Just the Base Price
The sticker price of a flat is just the beginning. The total outflow is often 10-15% higher once you account for additional charges. These hidden costs include stamp duty (typically 5-6% in Maharashtra), a 1% registration fee, and Goods and Services Tax (GST) of 5% on under-construction properties. Besides these government levies, developers often charge for amenities like club membership and car parking. For resale properties, there may be society transfer charges. Additionally, budget for interior fit-outs, which can be a significant expense, especially for a bare-shell flat.
6. Check for Clear Property Tax and Utility Bills
For resale properties, ensuring there are no outstanding dues is crucial for a smooth transfer of ownership. Ask the seller for the latest property tax receipts and verify that they are paid up to date. This confirms that there are no pending liabilities with the municipal corporation. Similarly, check the most recent electricity and maintenance bills to ensure they have been cleared by the previous owner. A No-Objection Certificate (NOC) from the housing society is also essential, as it confirms the seller has settled all their dues with the society and is free to sell the flat.
