Most Common Mistakes in Property Registration in Maharashtra

The Mistake

Many buyers rely solely on the seller's word or a broker's assurance. They fail to conduct a proper title verification. This can lead to buying property that is under litigation, mortgaged, or not owned by the seller at all.

How to Avoid

• Obtain a 7/12 Extract (Saat-Baara Utara) in rural areas or a Property Card (Malmatta Patrak) in urban areas.
• Check the Encumbrance Certificate (EC) for at least 30 years to ensure there are no loans, charges, or legal disputes.
• Hire a property lawyer to issue a Title Certificate / Legal Opinion confirming clear ownership.

The Mistake

In Maharashtra, especially in cities like Mumbai and Pune, thousands of under-construction flats are sold without proper approvals or RERA registration. Buyers often trust flashy brochures instead of checking compliance.

How to Avoid

• Check if the project is listed on the MahaRERA Portal (maharera.mahaonline.gov.in).
• Verify whether the builder has obtained a Commencement Certificate (CC) and Approved Building Plans.
• For completed projects, insist on a Completion Certificate (CC) and Occupancy Certificate (OC).
• Under RERA, the builder must disclose details of the project timeline, layout, and financial compliance.

The Mistake

Sale deeds often contain critical errors that can invalidate ownership or create future disputes.

• Wrong CTS/Survey number
• Inaccurate boundaries
• Carpet area not mentioned (as mandated by RERA)
• Parking area not mentioned properly
• Missing clauses about possession and penalty for delay

How to Avoid

• Cross-check all property details with the 7/12 Extract, Property Card, and approved plans.
• Ensure the carpet area (not super built-up area) is mentioned clearly.
• If parking is allotted or purchased from the builder, ensure clear mention of parking area and number.
• Have the Sale Deed drafted/reviewed by an independent advocate, not the builder's lawyer.

The Mistake

Some buyers understate the property value to save on stamp duty, or fail to calculate additional levies like metro cess in Mumbai, Thane, Pune, and Nagpur. This can attract penalties and make the deed legally questionable.

How to Avoid

• Always calculate stamp duty using the Ready Reckoner Rate published annually by the Maharashtra Government.
• Pay stamp duty and registration charges online through the official IGR Maharashtra GRAS Portal.
• As of 2025: Stamp Duty is 5% in urban areas, 4% in rural areas + 1% metro cess in major cities.
• Registration Fees: 1% of property value (capped at ₹30,000 in certain cases).

The Mistake

Many buyers believe registration is the last step. They forget mutation (Ferfar), which means updating their name in the government's land/property records if you are purchasing residential land, agricultural/farm land. This leaves ownership records in the seller's name, creating problems in resale, loans, or inheritance.

How to Avoid

• After registration, file a Mutation Application at the local Talathi Office (rural) or City Survey Office (urban).
• Submit the registered Sale Deed, application form, and required fees.
• Ensure your name is updated in the 7/12 Extract or Property Card.

The Mistake

Fraudulent sales through unregistered or expired POAs are common, especially in redevelopment projects.

How to Avoid

• Verify whether the POA is legally registered, stamped, and valid.
• Prefer dealing only with the actual owner.
• For inherited properties, demand a Legal Heirship Certificate.

The Mistake

Buyers often overlook hidden dues when purchasing resale property, such as unpaid property tax, water/electricity bills, society maintenance charges, or loan arrears.

How to Avoid

• Obtain a No Dues Certificate from the builder or housing society.
• Cross-check with the municipal corporation for property tax receipts.
• For resale flats, verify society records and obtain a Society NOC.

The Mistake

Many buyers simply sign builder-drafted Sale Agreements without legal review. These often contain one-sided clauses protecting the builder.

How to Avoid

• Get the agreement vetted by an independent lawyer.
• Ensure clauses on possession date, penalty for delay, refund policy, and amenities are clearly mentioned.

The Mistake

In Maharashtra, agricultural land cannot be used for residential/commercial purposes unless converted into Non-Agricultural (NA) land. Many buyers ignore this and later face demolition or non-approval of construction.

How to Avoid

• Verify whether the land has an NA Order issued by the Collector.
• For farmhouses, ensure compliance with Green Zone regulations.

The Mistake

Perhaps the biggest mistake is treating property registration as a do-it-yourself task. Many people rely on brokers or builders instead of qualified lawyers, risking huge financial loss.

How to Avoid

• Always consult a real estate lawyer before finalizing property transactions.
• Lawyers can help with title search, deed drafting, stamp duty calculation, and mutation process.

• Duly executed and registered Agreement to Sale, Sale Deed, Deed of Apartment, or Assignment Deed
• Identity proof (Aadhaar, PAN, Passport, Driving License)
• Photographs of buyer, seller, and witnesses
• 7/12 Extract or Property Card
• Encumbrance Certificate
• Society NOC (for resale flats)
• RERA Certificate (for under-construction projects)
• TDS receipt (Form 26QB) if property value > ₹50 lakhs