Verify the Builder's RERA Registration
The first and most critical step is to verify the project's status on the Maharashtra Real Estate Regulatory Authority (MahaRERA) website. Every legitimate project must be registered. This portal is a treasure trove of information, providing details on the promoter,
approved plans, project timelines, and any past complaints or litigation. A builder who is not registered with RERA should be an immediate red flag, as it is illegal for them to market or sell their project. Compare the delivery timelines mentioned by the sales team with the official dates submitted to RERA to check for consistency.
Scrutinise All Legal and Approval Documents
This is where due diligence truly pays off. Insist on seeing the chain of legal documents. Key papers include the Title Deed, which proves the seller's ownership and right to sell, and the Commencement Certificate (CC), the municipal permission to start construction. Equally important is the approved building plan to ensure the construction is authorised. For ready-to-move-in flats, the Occupancy Certificate (OC) is non-negotiable. The OC is the official clearance from local authorities certifying the building is safe and fit for habitation. Living in a flat without an OC can lead to penalties and issues with essential utilities like water and electricity.
Assess the Builder's Track Record and Reputation
A glossy brochure sells a dream, but a builder's history reveals the reality. Investigate their past projects. Visit one or two of their completed buildings to assess the construction quality and maintenance years after handover. Speak to current residents about their experience with timelines, promised amenities, and after-sales service. A builder with a consistent record of obtaining OCs for their past projects and delivering on time is a strong positive signal. A history of significant delays or legal disputes is a clear warning sign.
Understand the Complete Cost — Not Just the Base Price
The price on the brochure is never the final cost. In Mumbai, additional charges can inflate the total outgo by 10-15% or more. Before paying the booking amount, demand a detailed cost breakdown. This should include government levies like stamp duty (around 6% in Mumbai) and registration charges. For under-construction properties, a 5% GST is applicable. Also, clarify other potential costs such as charges for parking, society formation, advance maintenance deposits, and preferential location charges (PLC) for higher floors or better views. RERA mandates that all these charges be disclosed upfront.
Review the Booking Form and Payment Terms
The booking form or allotment letter is a legally binding document. Read every clause carefully before signing. It should clearly mention the specific flat details (unit number, carpet area), the total agreed price, and the payment schedule. According to RERA, a builder cannot accept more than 10% of the property's cost as an advance payment before executing a formal, registered Agreement for Sale. Be wary of any demand exceeding this limit. Also, ensure the cancellation and refund policy is clearly stated in writing. While builders can forfeit a portion of the booking amount if you cancel, MahaRERA has guidelines to prevent arbitrary deductions.
Check for Project Loan Approvals
A good indicator of a project's legal and technical clearance is its approval by major banks and financial institutions for home loans. Banks conduct their own rigorous due diligence on a project's title and approvals before financing it. If leading banks have pre-approved the project for loans, it adds a layer of confidence. This check can be as simple as asking the developer for the list of banks that have approved the project or checking with your own bank if the property is on their approved list. This step can save you from potential hurdles during your own home loan application process.
