Verify the Developer's Redevelopment Record
Not all developers have the specific expertise required for redevelopment, which is more complex than building on vacant land. It involves managing existing residents, handling temporary relocations, and navigating a labyrinth of approvals. Before you
commit, investigate the developer’s history. Ask for a list of their completed redevelopment projects, not just projects they have launched. Visit these sites to assess the construction quality and speak to residents if possible. A developer with a proven track record of successfully completing at least three to five redevelopment projects on time is a much safer bet. Check the official MahaRERA portal for any complaints or delays associated with the developer's past projects to gauge their reliability and transparency.
Scrutinise All Legal and Title Documents
The legal foundation of a redevelopment project is paramount. Your ownership rights depend on a clear chain of documents. The most critical document is the Development Agreement (DA) between the housing society and the builder, which must be registered. This agreement outlines the terms, including the responsibilities of the developer and the rights of the original members. Also, verify the property’s Title Deed to ensure the society has clear, marketable ownership of the land. An advocate should ideally conduct a title search going back at least 30 years to uncover any disputes or claims. Ensure the society has obtained the necessary consent from its members for the redevelopment, which is a minimum of 51% but preferably higher to avoid future disputes.
Confirm All Statutory Approvals Are in Place
A project without the right permissions is a significant red flag. Do not rely on verbal assurances. The project must be registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) if it meets the criteria, such as having more than eight units or being over 500 square metres. You can verify the project’s status, including layout plans and completion deadlines, on the MahaRERA website. Key municipal approvals to check for include the Intimation of Disapproval (IOD) and the Commencement Certificate (CC). The CC is particularly important as it specifies how many floors the builder is permitted to construct. Ensure the CC covers the floor your intended flat is on. Without an Occupancy Certificate (OC), legally moving into the building is not possible.
Understand the Plan and Your Entitlements
The sales brochure often paints a rosy picture, but the legally binding documents are what matter. Carefully review the approved floor plan and the agreement for sale. It should clearly state the carpet area of the flat you are buying; do not be misled by super built-up area figures. The agreement must also detail the project's completion timeline and include a penalty clause for delays. Check the list of amenities promised and ensure they are part of the formal agreement. It is also wise to understand the arrangements made for the original society members, such as transit rent and corpus funds. Any ongoing disputes or dissatisfaction among the original members can be a warning sign of potential project delays.
Assess the Project's Financial Viability
Many redevelopment projects stall due to a lack of funding. To protect buyers, RERA mandates that developers deposit 70% of the money collected from new buyers into a separate escrow account, to be used only for that specific project's construction costs. You should also inquire about the project's funding source. Is it self-funded by the developer, or is it backed by a reputable financial institution? The presence of major banks offering home loans for the project is a positive sign of its financial health and legal clearance. A payment schedule linked to construction milestones, rather than being time-based, also offers a layer of protection for the buyer.
