Buying a home is a dream for many, but overlooking legal and practical details can turn it into a nightmare. A wrong decision can lead to financial losses, legal disputes, or even losing your hard-earned investment. To ensure a smooth and secure property purchase, here are 20 crucial checkpoints every homebuyer must verify before finalizing a flat deal.
1. RERA Registration (Real Estate Regulatory Authority)
The Real Estate (Regulation and Development) Act (RERA) protects buyers from fraudulent practices by builders.
How to Check RERA Details of a Property?
- Visit the official Maharashtra RERA website: maharera.mahaonline.gov.in
- Search using the project name, registration number, or builder details.
- Verify the project’s approval status, completion timeline, and any complaints against the builder.
Home buying checklist – Why is RERA Important?
- Ensures transparency in project delivery.
- Mandates builders to deposit 70% of funds in a separate account to avoid fund diversion.
- Provides legal recourse in case of delays or fraud.
2. Property-Sports Authority Standardisation (Clause 7)
Some properties, especially near sports facilities, may have special regulations.
Key Checks:
- Title Deed Verification: Ensure the property is legally transferable.
- Freehold vs. Leasehold:
- Freehold: You own the property indefinitely.
- Leasehold: Land is leased for a fixed period (e.g., 99 years).
Why Does It Matter?
Leasehold properties may have restrictions on resale or redevelopment.
3. Essential Property Documents
Before purchasing, verify these mandatory documents:
✅ Sanctioned Building Plan – Approved by municipal authorities.
✅ Environmental Clearance – Ensures no ecological violations.
✅ Commencement Certificate (CC) – Permits construction start.
✅ Intimation of Disapproval (IOD) – If any objections exist.
✅ Development Agreement – Between builder and landowner.
✅ Sale Agreement Draft – Must be reviewed before signing.
Missing any of these? The property could be illegal or disputed.
4. Occupation Certificate (OC) / Completion Certificate (CC)
An OC is issued when the building is ready for habitation.
Why is OC Important?
- Without OC, banks may not approve loans.
- Municipalities can penalize or even demolish illegal constructions.
Check:
- Is the OC original and issued by local authorities?
- Are there any pending violations or court cases?
5. Legal Verification of Property Documents
A legal expert must verify:
- Title Deed – Confirms ownership.
- Encumbrance Certificate (EC) – Proves no loans or legal dues.
- Ownership History – Ensures no inheritance disputes.
Risk of Skipping This: You may buy a disputed property leading to legal battles.
6. Carpet Area vs. Built-up Area
- Carpet Area: Actual usable space (excluding walls).
- Built-up Area: Carpet area + walls & ducts.
- Super Built-up Area: Includes common areas (lifts, lobby).
Builder Trick: Selling based on super-built-up area reduces the actual living space.
Solution: Demand carpet area details in the agreement.
7. Society Maintenance & Charges
- Is the property under a registered society?
- What are the monthly maintenance charges?
- Are there any pending dues from previous owners?
Hidden Risk: Unpaid dues can become your liability after purchase.
8. Hidden Costs
Many builders add undisclosed charges, such as:
- Parking fees
- Clubhouse access
- Advance maintenance
- Legal & registration fees
Solution: Get a written breakdown of all costs before signing.
9. Sale Agreement Draft – Key Clauses to Check
Before signing, ensure the agreement includes:
- Payment schedule & penalties
- Possession date (with grace period)
- Penalty for delay
- Cancellation terms
Warning: Vague clauses can lead to exploitation by builders.
10. Stamp Duty & Registration Charges
- Stamp Duty: Varies by state (5-7% in Maharashtra).
- Registration Charges: 1% of property value.
Verify:
- Are payments as per RERA guidelines?
- Is the builder demanding extra charges illegally?
11. Property Tax – Paid or Pending?
- Check if all taxes (linked to CC) are cleared.
- Pending dues? You may have to pay them later.
12. Encumbrance Certificate (EC)
-
Obtain EC for the last 13 years to confirm:
-
No pending loans on the property.
-
No legal disputes.
-
No EC? The property could be mortgaged or disputed.
13. Approved Development Authority
- Is the property under Municipal Corporation, MMRDA, SRA, or PMRDA?
- Different authorities have different rules.
14. Builder’s Possession Date & Grace Period
- Is the possession date fixed in the agreement?
- What is the penalty for delay?
Builders often delay projects – ensure compensation clauses exist.
15. Future Development Risks
- Are open spaces, parks, or amenities marked for resale?
- Check the layout plan for future construction risks.
Example: A promised park may later turn into a new building.
16. Flat Resale & Lock-in Period
- Many builders impose a 1-3 year resale restriction.
- Check the agreement to avoid penalties.
17. Floor Rise Charges
- Builders charge extra for higher floors.
- Ensure these costs are mentioned in the agreement.
18. Use of Amenities
- Are the clubhouse, gym, and pool included?
- Are there extra usage charges?
Some builders sell amenities separately – clarify beforehand.
19. Water & Electricity Connection
- Is the supply regular or temporary?
- Temporary connections can lead to disruptions & extra costs.
20. Parking Rights
- Is parking allotted in writing?
- Open parking vs. stilt parking – demand clarity.
Disputes over parking are common – get it in writing!
Final Advice: Always Consult a Legal Expert
Even if everything looks perfect, a legal audit of documents is a must. A small investment in due diligence can save you from legal battles & financial losses.
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