Legal Aspects


The title of the property should be clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation which is likely to affect the title to the property. The developer shall enclose a copy of the 'Title Certificate' from the solicitor/advocate showing his rights, along with the 'Agreement for Sale'.

Inspection of Documents

All sanctions from authorities, like approved plans/specification and commencement certificates, NA permission, exemption under Urban Land Ceiling Act, should be made available for perusal of the purchaser. It is the builders liability to give or produce the information and the documents mentioned in Section 3 of the Maharashtra Ownership Flats Act.

Booking /Buying of property

Book/buy your flats/premises only when developer has obtained sanction of plans and commencement certificate from the concerned authorities. Ask for NA order issued by the district Collector's Office, except in cases where finance is to be raised by mutual agreement.

Agreement of Sale

The flat purchaser has a right to enter into a proper agreement for sale with respect to the flat which he intends to purchase before or immediately after paying earnest money/advance payment to the developer. The agreement shall be in a prescribed form. A model for agreement to be entered into between the builder and the purchaser is given in Form V of the Maharashtra Ownership Flats Act, 1964. The agreement for sale has to be registered with the Sub-registrar of Assurances under the Indian Registration Act of 1908 and it is a mandatory requirement.

Payment Schedules

Payments to be made under the agreement for sale should be scheduled according to the progress of the work and as per the provisions of the relevant Acts, or as may be mutually agreed between the developer and you. However, according to provisions made under Section 4 of the Maharashtra Ownership Flats Act, builder is not entitled to receive more than 20% of sale price,as a deposit or advance payment .click here for typical payment schedule,


The developer should not enhance the price of the flats/property once the agreement for sale is executed on any account whatsoever, except for additional government levies/taxes/court orders or in terms of the relevant Acts.

Construction of Building

Flat purchaser should check that the builder carries out construction strictly in accordance with the sanctioned plans and specification by the concerned authority . Builder should obtain completion/ occupation certificate prior to possession of the flat by you.

Quality of Construction

The developer must ensure good quality materials and proper workmanship. Specifications as per agreements should be adhered to and statutory specifications of the Local Planning Authority should be complied with.

Details of Other Members

The developer must prepare and maintain a list of flats, with their numbers and the names and addresses of the parties, price charged, terms and conditions on which the flats are taken or agreed to be taken.

Carpet Area

The carpet area of the flats / houses should be clearly and unambiguously defined in the agreement. Particulars regarding the area of the balconies/terraces and common areas should be shown separately. The builder must mention the price of the flat including proportionate price of the balconies /terraces and common areas and facilities.


The nature, extent and description of all amenities and common facilities including one or more lift(s) should be clearly mentioned in the agreement for sale and same should be complied with. The flat purchaser should check size and capacity of these amenities. Improper size and capacity may lead to lack of parking space, inconvenient staircases, overloaded lifts,inadequate water pumping and storage, improper drainage etc.


All conditions with regard to infrastructures as set out in the layout plan approved by the Municipal authority/ Planning authority should be fully complied with. The building and its premises should be left in a clean and habitable condition.

Change in Plan/Specification

Once the plan and specification is approved by the local authority and disclosed/furnished to the flat purchaser, the builder should not make any alteration, additions or deviations in the plan and specifications of the buildings.

Delayed Completion of Building

In case of delayed completion of the building beyond the period stipulated under the 'Agreement for Sale', the developer should return all the payment received by him, along with interest as specified in the agreement from the date, the builder received the money till the date amount and interest thereon is refunded.


The builder should specify in writing the date on which the possession of flat is to be handed over to the buyer. The developer should ensure timely possession. The developer should obtain completion /occupation certificate from competent authority. The flat purchaser should insist on receipts of payments made by the builder to the MSEB for the electricity meter connection

Defective Construction

During the defect liability period ( i.e. three years), the developer should attend to all bonafied complaints expeditiously. If the developer fails to rectify the defect in the building/material used for construction/any unauthorized change in the construction, according to Section 7(2), the purchaser has a right to receive reasonable compensation.

Account of Payments

The developer should maintain separate account in respect of sums received by him from the buyer as advance or deposit. Sum received on account of the capital for promotion of a co-operative housing society, apartment association, or a company, or towards the outgoings, legal charges etc. and shall utilize the said amounts only for the purpose for which they have been received. Such accounts should be should be given to the society/ association not later than 3 months from the date of handing over the charge of the building.

Society Formation

The developer should take steps for registration of a co-operative housing society or any other body corporate as may be necessary. Builder/promoter should submit an application to the Registrar within a period of four months after minimum number of persons required to form a Co-operative society or any other body have taken houses. It is the duty of the developer/builder to convey his right, title and interest in the land and the building to the Co-operative Housing Society or Company or Association of flat owners.

Transferring rights of the Flat

The developer should take steps for registration of a co-operative housing society or any other body corporate as may be necessary. The developer should at the time of transfer hand over to the society/ association of apartments all original title deeds and related documents as well as all plans of the buildings including all external service drawings and structural drawings


Any builder/developer/promoter fails to perform his liabilities as aforesaid shall, on conviction be punished. The complaint against any builder/promoter, in contravention of any provision under the Act can be made to the Metropolitan Magistrate or Judicial Magistrate, first class as the case may be.

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