The Carpet Area Conundrum
The single most critical question is about the exact size of your new home. Do not accept vague terms like 'built-up' or 'super built-up' area. Insist on the RERA carpet area, which is the net usable floor area within your flat's walls. Developers may
sometimes try to include flower beds or dry balconies in the 'usable' area, so clarity is key. Ask for a written, flat-wise area statement showing your current carpet area and the proposed new carpet area. Most redevelopment projects in Mumbai offer an increase of 25% to 50% over the existing area, but this is not guaranteed and depends on various factors like FSI and location. Ensure the final Development Agreement explicitly mentions the RERA carpet area to avoid disputes later.
Understanding the Financials
Redevelopment involves several financial components that you must understand thoroughly. First is the corpus fund, a one-time, lump-sum payment from the developer to the society. This fund is meant to cover the higher maintenance costs of the new building. Ask for the exact amount, how it's calculated (usually per square foot), and when it will be paid. Next is the transit rent, which the developer pays for your temporary accommodation. This should be based on current market rates in your locality and the agreement must include a penalty clause for delayed rent payments. Also, clarify who bears the costs of stamp duty, registration for the new agreement, and any applicable GST on extra area purchased.
Project Timelines and Delays
Project delays are a common nightmare in Mumbai's redevelopment landscape. Your Development Agreement must have a clearly defined timeline, including the start date, the committed completion date, and the final handover date. A crucial follow-up question is: What are the penalties if the developer fails to meet these deadlines? A strong penalty clause, often involving an escalated rent payment for the delay period, is your primary protection against indefinite waits. Also, ask about the current status of approvals. A project with all necessary permissions, including the Commencement Certificate (CC) from the BMC and MahaRERA registration, is on much more solid ground.
Legal Agreements and Safeguards
Do not sign any document without scrutiny. There are two key legal documents: the Development Agreement (DA) between the society and the developer, and the Permanent Alternate Accommodation Agreement (PAAA) signed by each member. Both must be registered to be legally enforceable. Check that the DA includes all promises made by the developer regarding carpet area, corpus fund, rent, specifications, and amenities. It's also vital to verify the developer's RERA registration for the project. This provides a layer of regulatory oversight and a formal channel for grievance redressal if things go wrong.
Quality, Amenities, and Parking
A new home is more than just four walls. Question the developer about the specific materials and brands to be used for fittings, flooring, and windows. These details should be annexed to your agreement. Ask for the sanctioned floor plan of your specific flat to understand the layout. Beyond the flat, what amenities are promised for the new building, such as a society office, security systems, or better lifts? One of the most contentious issues in Mumbai is parking. Clarify the car parking allocation plan. Will you get a designated spot, and is it included in the agreement? Never rely on verbal assurances for these critical lifestyle aspects.
Post-Possession and Defect Liability
The process doesn't end when you get the keys. Ask about the 'defect liability period'. This is a duration post-handover during which the developer is responsible for fixing any structural or quality issues that may appear. Also, ensure the developer is obligated to obtain the Occupation Certificate (OC) from the municipal authority before handing over possession. Living in a building without a valid OC can lead to serious legal and civic complications. Finally, confirm the process for the formation of the new society and the formal handover of the building and its maintenance responsibilities.
