Buy a property in Mumbai – the Commercial, Industrial and Entertainment Center of India

Mumbai—the commercial, industrial and entertainment center of India is undoubtedly the nation’s financial heartbeat in true sense. Being the focal point for economic activities (housing renowned financial institutions, maritime trade and multinational enterprises) and the bustling cultural affairs Mumbai holds a strong grip on the Real Estate market. Mumbai is well-connected to the rest of the country with an excellent air, road and railway network, which further adds to the soaring property prices.

The growing importance of this metropolis on the Indian Map, a promising future, and the favorable living standard has amplified the property transactions to a large extent. Property purchase, selling, transferring and reselling have become a daily affair. All of this further entangles the already complicated process of buying a property in Mumbai. So it goes without saying that one needs to be extra careful while getting involved in buying a property as all your earnings and dreams are at a stake. It is advised to get all the legal documents scrutinized by an experienced lawyer as buying a property is a highly critical matter. Check out the below checklist for Mumbai for a smooth transaction and acquisition of a clear title. The essential documents required for verification depend on the region and the type of property.

The following basic checklist needs to be verified before purchasing any property in Mumbai:

  • Mother deed/ Sale deed: This is the most important document for tracing the ownership of the land. It gives details of the property as to how it was acquired at the initial stage and the subsequent series of transactions it has undergone. You should also check for the original sale agreement showing the builder/developer duly registered.
  • Search Report: It provides details of the original property holder, property history, charges on the property, current property status (all dues paid or still pending) and the number of times the property has changed hands before being owned by the present seller. Your advocate will fetch you all these details and confirm whether it is a legitimate property for sale or not.
  • Agreement: Once the property is decided, make an advance payment and get a written agreement on a stamp paper duly signed by both the owner and the buyer in the presence of two witnesses. An agreement must state: the advance paid, actual price, duration of actual sale, and legal actions to be taken in case of a default from either party.
  • Stamp Duty: This should be paid in full and on a timely basis as per the Bombay Stamp Act, 1958 as it varies from place to place. To get an agreement stamped it should be without any signature or date and the agreement can be implemented only when the Stamp Office fixes stamps on it.
  • Registration: Get the deed registration done in a sub registrar of assurances as per the Indian Registration Act within four months from the date of execution of the documents. If you fail to register the agreement within the time frame then you can register the agreement not extending beyond another four months by writing an application to the sub registrar of assurances and paying the legitimate fee. For registering a property you need: house tax/property receipts, original title deed, and previous deeds etc., two witnesses are also required at the time of registration. It is mandatory to get the property registered under Indian Registration Act, 1908 or else the buyer will not acquire the proper legal title of the property purchased.
  • Encumberance Certificate: A latest Encumberance certificate having the details of last 30 years should be checked. It can be obtained from the sub registrar.

Apart from the above checklist you should also ensure that the seller has obtained approvals from the Municipal Corporation, Electricity Boards, Area Development Authorities and Water Supply and Sewage Boards. After purchasing the property you should also get the owner’s name changed in all the government documents like 7/12 and 6/12 extracts, electricity department and also in all other government authorities to update the records once you have paid the applicable fee for the same. 


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