Stop! Check These 7 Legal Documents Before Buying Property in Maharashtra

The Ultimate Guide to Buying Property in Maharashtra: Precautions & Essential Documents

Stop! Check These 7 Legal Documents Before Buying Property

Investing in real estate in Maharashtra is a significant financial decision. Whether you are buying a flat in Mumbai, a plot in Pune, or agricultural land in a rural area, thorough due diligence is non-negotiable. Missing a crucial legal document can lead to severe financial and legal troubles down the line.

Here is a detailed guide on the precautions to take and the documents you must verify, backed by the relevant legal frameworks.

1. Essential Precautions Before Buying Property

A. Verify MahaRERA Registration

Under Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA), it is mandatory for all commercial and residential real estate projects with land over 500 sq. meters or more than 8 apartments to register with MahaRERA. Always verify the project's RERA registration number, promoter details, and project deadlines on the official MahaRERA website.

B. Title Search and Public Notice

Hire an advocate to conduct a "Title Search" for the last 30 years to ensure the seller has absolute ownership. Under Section 54 of the Transfer of Property Act, 1882, a sale is only valid if the transferor has a clear and marketable title. Your advocate should also publish a Public Notice in two local newspapers inviting objections, if any, before finalizing the deal.

2. Crucial Documents to Verify

A. 7/12 Extract & Property Card

7/12 Extract: Vital for land outside city limits. It shows the history of ownership, land usage (agricultural/non-agricultural), and any existing liabilities or loans.

Property Card: Essential for properties within municipal limits. It establishes the ownership title of the land in urban areas.

B. Encumbrance Certificate

Issued under the Registration Act, 1908, Form 15 or 16. This certificate proves that the property is free from any legal or financial liabilities, such as mortgages or uncleared debts. Ensure you get an EC for at least the past 15 to 30 years.

C. Approved Sanction Plan & NA Order

Under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act), constructing on agricultural land without converting it is illegal.

NA Order (Non-Agricultural Order): Ensures the collector has permitted the land to be used for residential/commercial purposes.

Sanctioned Plan: Ensure the building layout is approved by the local municipal authority (TMC, PMC, BMC, etc.).

D. Commencement Certificate (CC) & Occupancy Certificate (OC)

CC: Permission from the local authority to begin construction.

OC: A vital document certifying that the building has been built according to the approved plans and is legally ready for occupation. Buying a flat without an OC means the building is unauthorized and can face demolition or lack of civic amenities (water/electricity).

3. Important Legal Frameworks to Remember

To protect your rights as a buyer, keep these legal acts in mind:

i. Registration Act, 1908 (Section 17): Makes it mandatory to register the Sale Deed (खरेदी खत) within four months of execution. An unregistered sale deed has no validity in a court of law.

ii. Maharashtra Stamp Act, 1958: Governs the stamp duty payable on property transactions. Paying adequate stamp duty is a legal requirement for the document to be admitted as evidence in court.

iii. Transfer of Property Act, 1882 (Section 55): Imposes a duty on the seller to disclose any material defect in the property or in their title, which the buyer could not ordinarily discover.

Check These 7 Legal Documents Before Buying

1. 7/12 Extract or Property Card -

The 7/12 extract is vital for land outside city limits to check agricultural status and ownership history. For properties within municipal limits, the Property Card establishes the urban land title.

2. Title Search Report -

Conduct a Title Search Report for the last 30 years through an advocate to ensure the property is free from legal disputes and the seller holds absolute ownership.

3. Encumbrance Certificate - EC 

This certificate proves that the property is free from any pending legal or financial liabilities, such as uncleared bank loans or mortgages.

4. MahaRERA Registration Certificate -

For under-construction projects, verifying the MahaRERA registration is mandatory. It ensures the builder is legally authorized to construct and sell the project.

5. Approved Sanction Plan & NA Order -

Ensure the land is converted to Non-Agricultural (NA) use and the building layout is officially sanctioned by the local municipal authority.

6. Commencement and Occupancy Certificate (CC & OC) - 

CC is the legal permission to start construction. OC certifies that the building is completed as per approved plans and is legally safe to occupy.

7. Original Sale Deed & Chain of Documents 

Verify the current owner's Original Sale Deed along with the chain of past agreements to track the complete history of property transfers.

        Property acquisition in Maharashtra requires vigilance. Never skip the verification of the 7/12 extract, OC, and MahaRERA registration. It is highly recommended to engage a competent real estate lawyer to vet the documents and draft the Sale Deed to ensure a watertight legal transaction.

Disclaimer: This article is published for the purpose of general public awareness regarding property laws in Maharashtra. It should not be construed as a substitute for personalized legal counsel. Since every property transaction is unique, readers are advised to consult us or their respective legal professionals with their specific property documents before finalizing any real estate deal.

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