Checklist for Buyers for purchasing property in Mumbai

Satt Reality Estate & Property Consultants

List of checklist before finalizing a property:

• Title Report by the Solicitor of the Property – Check that there are no conditions written in fine prints and there are no specific reservations by the State Government. 
• Specific Clearance Reports – Check for Specific Clearance report, for e.g. if the property is near a sea front, check for Coastal Regulation zone (CRZ) clearance. If near a heritage building, check for any Heritage reservations for the premises. Lack of Clearance titles could mean you might not be able to avail of any Home loans.

Permissions & Approvals:

For any construction to begin, the builder must seek a list of following permissions and approvals from relevant bodies. Without these permissions, the construction can come under litigation. Following are the list of permissions & approval that a builder must posses for all type of building woks in Mumbai. The builder is required to have approval or sanctions from concerned authority for the construction of building. The building constructed without sanctions or deviated more than 5 per cent from approved plan levies penalty and authorities has right to demolish the building without any prior notice. Following include the list of approvals or sanctions required for builder for any construction activity:

• Building Plan:                                                        A builder should submit building plan before starting the construction activities. Building plans are a graphical representation of what a building will look like after construction. Building plan ensures that building complies with building laws. Once the building plan is approved, builder should commence construction work within two years and there should be no deviation from sanctioned plan.
• Layout approval:                                  The builder has to get approval of layout plan from concerned authorities before starting construction of residential or commercial building. Constructing building in unapproved layout will not be given permission to occupy or such layout plots will be treated as continuing offense and exemplary penalties will be levied as per Municipal Laws. Land which is sub-divided into plots without permission from competent authority is considered illegal or unapproved layout. No facilities such as roads, drainage, street lighting will be extended in such areas.
• Basic amenities:                                                   The builder should get approval from concerned authorities for electricity, water for potable and non-potable use. The building should comply with building laws for sanction or approval of basic amenities.
• No Objection Certificate (NOC):                       The builder has to get NOC from pollution board on the project. It is essential for the approval for sewer or water supply. It is also important to get NOC from the neighboring properties to prove that builder is not encroaching any neighborhood property. Builder has to get NOC from municipality or respective authority for digging bore well. Digging bore well without NOC or approval will be levied penalty and material used for digging bore wells would be seized. In case of construction of building with lift facility, builder has to get NOC from lift authorities.
• Completion Certificate:                                     Completion certificate is mandatory for building constructed before selling or occupied. Issuing of Completion Certificate will ensure that the builder or owner has constructed the building as per approved plan.
• Clear Title:                                                            The builder has to get clear title for the land or plot. Clear title ensures that the property is clear, marketable and it traces any charges or encumbrances created on the property and its present status. It enables a prospective buyer to know the chain of holdings, transfers over a period and check any dispute on the ownership of the property.
• IOD:                                                                        Intimation of Disapproval is an essential permission given to the developer by the municipal authorities to re-develop an old building. The developer however cannot demolish the old building just on the basis of IOD alone. After redevelopment plans are submitted to the Building Proposal Department of BMC, an IOD is issued, and under the terms and conditions of the IOD, the developer is asked to comply with many requirements and obtain various clearances like clearance from Environment Authorities, Tree Authorities, and Fire Officer etc. After these clearances are obtained, the developer is entitled to obtain a Commencement Certificate (CC).
• MCGM approved plans.

Home loan:

Home Loan:

You must be at least 21 years of age for the loan to be sanctioned. The loan must terminate before or when you turn 65 years of age. You must be employed or self-employed with a regular source of income.

Office premise loan:

You must be at least 21 years of age for the loan to be sanctioned. The loan must terminate before or when you turn 65 years of age. You must be self-employed with a regular source of income. The loan can be for the purchase / construction / extension of a non-residential property. A loan for renovation or improvement will be given only at the time of acquisition of property. Professionally qualified and self-employed individuals can apply. A minimum of 3 year's work experience is a must.

Loan Amount:

A number of factors such as your income, age, number of dependants, qualifications, assets and liabilities, income stability/ continuity of your employment / business etc. are taken into account when assessing your repayment capacity. 

However, there are ways by which you can enhance your eligibility: If your spouse is earning, add him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants. Did you know that your fiancée's income could also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, is done only after you submit proof of your marriage. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility. While there is no need for a guarantor, having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details. However, the final amount to be sanctioned will depend on your repayment capacity. In the total cost, registration charges, transfer charges and stamp duty costs are included.