Property due diligence checklist for Mumbai

Title search

Commonly 30 years

Registration

Within 4 months

RERA threshold

Over 500 sq m or 8 flats

Advance before registration

Max 10% (RERA s. 13)

Who is entitled to sell

The first question is not about the building at all. It is whether the person signing is the person the title recognises. Where a power of attorney is produced, it has to be read rather than accepted: a general power does not authorise a sale unless it says so, and a power authorising sale of immovable property requires registration. Where the flat came by inheritance, the succession certificate, probate or heirship record establishes who may deal with it — and whether every heir has signed.

Where the seller is a non-resident, this step also decides how the money moves. Tax is deducted under Section 195 rather than Section 194-IA, and the rate is not the resident rate. Treating an NRI sale as an ordinary one is one of the more expensive mistakes a buyer can make, because the liability for short deduction falls on the buyer.

Title, searches and records

A search at the office of the Sub-Registrar shows what has been registered against the property, and thirty years is the period most lenders and advocates work to. It is read alongside the property card for a city-survey plot, or the 7/12 extract where the land still sits on revenue record, and alongside the index II of each transaction in the chain. What you are looking for is continuity: every transfer registered, every name accounted for, no gap where a document is described but not produced.

Approvals and occupancy

Approved plans, the Intimation of Disapproval and the commencement certificate show that the building was permitted. The occupancy certificate shows it was permitted to be lived in. A building occupied without one is not a paperwork problem to be tidied up later — it affects municipal charges, it affects whether a lender will fund the purchase, and it affects what happens at redevelopment. Ask why it was never issued.

For an ongoing project, MahaRERA registration is required where the land exceeds 500 square metres or there are more than eight apartments. The registration page is worth reading in full: it carries the sanctioned plans, the declared completion date, and any complaints already filed against the promoter.

Society papers and dues

In a co-operative housing society the share certificate, the society’s no-objection and no-dues certificates, and the resolution admitting the buyer are what complete the transfer at the society’s end. Ask separately whether conveyance has been executed in the society’s favour. Where the promoter never conveyed, the society can apply for deemed conveyance under Section 11 of MOFA — and whether that has been done changes the society’s position on redevelopment considerably.

Arrears follow the flat rather than the seller, so property tax, water, electricity and maintenance all need current receipts. A subsisting mortgage may not appear on the property card at all; a CERSAI search is what shows a registered charge.

Stamp duty and registration

Stamp duty is paid on the agreement value or the Ready Reckoner value for that location, whichever is higher. The document is then presented for registration within four months of execution. These are two separate steps, and a stamped but unregistered agreement for immovable property cannot be received in evidence of the transaction it records — which is usually discovered years later, at the worst possible moment.

The checklist

In what order

1. 01Establish who is entitled to sellThe seller on the agreement must be the person on the title. Where a power of attorney is used, read it: a general power does not by itself authorise a sale unless it says so and is registered. For inherited property, ask for the succession certificate, probate or heirship record before anything else.
2. 02Take out a title searchA search at the office of the Sub-Registrar, commonly covering thirty years, shows the chain of registered transactions. It is read together with the property card for a city-survey plot, or the 7/12 extract where the land is still on revenue record.
3. 03Read the approvals for the buildingApproved plans, the Intimation of Disapproval, the commencement certificate and — for a completed building — the occupancy certificate. A building occupied without an occupancy certificate is a live risk, not a formality.
4. 04Check RERA registrationAn ongoing project must be registered with MahaRERA where the land exceeds 500 square metres or there are more than eight apartments. The registration page carries the sanctioned plans, the completion date and any complaints filed against the promoter.
5. 05Collect the society papersShare certificate, the society's no-objection and no-dues, the transfer forms, and the minutes admitting the seller as a member. Ask whether conveyance has been executed in the society's favour — and if it has not, whether a deemed conveyance application is pending.
6. 06Search for encumbrances and arrearsA mortgage may sit with a bank and be recorded with CERSAI rather than appear on the property card. Separately, ask for current property tax, water, electricity and maintenance receipts — arrears follow the flat, not the seller.
7. 07Check for litigationPending suits, society disputes under Section 91, family or partition proceedings and recovery matters against the seller can all affect a transfer. This is a records check, not a question to be answered by the seller.
8. 08Pay stamp duty and register within timeStamp duty is paid on the agreement value or the Ready Reckoner value, whichever is higher. The document is presented for registration within four months of execution under the Registration Act. An unregistered agreement for immovable property is largely unusable as evidence of title.

Questions we are asked

How far back should a title search go for a Mumbai flat?

Thirty years is the conventional period, and it is what most lenders and advocates work to. A shorter search may be accepted for a flat in a registered society with a clean chain of index II entries, but the thirty-year search is what establishes that the chain is in fact clean.

Can I buy a flat in a building with no occupancy certificate?

It is possible but it carries real consequences: the occupation is irregular, the municipal corporation may levy penal water and property tax charges, and lenders frequently refuse to fund the purchase. Ask why the certificate was never issued before deciding whether the price reflects the risk.

What happens if the society has not received conveyance?

The land and building remain in the promoter's name. Flats continue to be bought and sold, but the society cannot deal with the property itself and is in a weaker position on redevelopment. Where the promoter has failed to convey, the society can apply for deemed conveyance under Section 11 of MOFA.

How much can a builder take before the agreement is registered?

Under Section 13 of the Real Estate (Regulation and Development) Act, a promoter cannot accept more than ten per cent of the cost of the apartment as an advance without first entering into a registered agreement for sale. A demand beyond that, without registration, is not permissible.

Is TDS deducted when buying a flat?

Where the seller is resident in India and the consideration is fifty lakh rupees or more, tax is deducted at source under Section 194-IA and deposited against the seller's PAN. Where the seller is a non-resident the deduction is made under Section 195 instead, at the rate applicable to that seller — the two are not interchangeable, and treating an NRI sale as an ordinary one is a common and expensive error.

Does the agreement need to be registered if I have paid stamp duty?

Yes. Stamping and registration are separate steps. An agreement for the sale of immovable property that is stamped but not registered cannot be received in evidence of the transaction it records, which is the point at which most buyers discover the omission.