Legal Checklist for Buying or Renting in Mumbai

Most disputes in Mumbai property are not about money — they are about a missing document. The legal checklist that prevents the calls you do not want to take is unglamorous, repetitive, and worth every minute. This is the version we walk every buyer and tenant through.

For buyers — before you pay any token

The five things to verify before any token money changes hands:

1. MahaRERA registration — verify the project’s number on maharera.maharashtra.gov.in. Check carpet areas, possession dates, and any complaints filed.
2. Title chain — get a property lawyer to do an independent title search. The chain should go back 30+ years showing clear title transfer.
3. Encumbrance certificate — confirms no liens, mortgages, or pending legal claims on the property.
4. Society NOC for sale — the housing society must approve the transfer. Some societies require advance application.
5. Builder’s clearances — for under-construction projects, verify approvals (commencement certificate, IOD, environmental clearances).

For buyers — at the time of agreement

The Agreement for Sale is the document that gets registered at the sub-registrar’s office. Read it line by line. Pay particular attention to:

• Carpet area number — must match the MahaRERA-disclosed figure.
• Possession date — and the default interest applicable if delayed.
• Payment plan — clear schedule, with refund clauses if the project does not complete.
• Parking allocation — specific slot or general allotment.
• Amenity list — what is committed, what is optional.

For buyers — at registration

Registration happens at the sub-registrar. Stamp duty (≈5% of agreement value) and registration (1%) are paid at this point. Be present in person; have your PAN, Aadhaar, photographs, witnesses, and originals of all KYC ready. The registered Agreement is delivered within a few weeks; collect the original and store it carefully.

For buyers — at possession

The Occupation Certificate is the most important document at possession. Without it, you cannot legally occupy. Specifically for projects with phased OC (such as part-OC scenarios), confirm the certificate covers your specific floor and unit. Then collect the share certificate from the housing society — this is your proof of ownership in the society’s books.

For tenants — before you pay any deposit

Three checks every tenant should do:

1. Owner verification — confirm the person letting the flat is the actual owner. Ask to see the share certificate and a recent property tax receipt.
2. Society NOC for tenancy — the housing society must approve incoming tenants. Without it, you can be asked to vacate.
3. Police verification — increasingly required by premium buildings; takes 5 – 7 days. Process can be initiated by the owner or the building’s leasing desk.

For tenants — at the leave-and-licence

The leave-and-licence is your legal foundation. Three things to get right:

• Registration is mandatory — for any tenancy over 12 months. Stamp duty 0.25% of total rent + ₹1,000 fixed.
• Lock-in — most owners ask for 6 – 9 month lock-in. Negotiate this if your stay duration is uncertain.
• Deposit refund clause — explicit timeline (typically 30 days from vacating), with deductions itemised.

For tenants — at move-in

Document the flat’s condition. A signed inventory list (with photographs) protects you at move-out. Note any pre-existing damage. Confirm utility meter readings — electricity, water, piped gas — and keep a copy. Take a copy of the registered leave-and-licence; you will need it for visa and HRA filings.

For everyone — ongoing

Throughout your ownership or tenancy:

• Pay property tax / society maintenance on time. Late dues block society NOCs.
• Renew leave-and-licence on time (for tenants).
• Keep utility bills and tax receipts; you may need them for any future transaction.

Common mistakes

The five most common legal errors we see in Worli:

1. Skipping the title search to save lawyer fees (₹15,000 – ₹50,000) — and discovering an issue at registration.
2. Accepting OC by floor without confirming the specific unit.
3. Verbal tenancy agreements (illegal under Maharashtra rules).
4. Losing the share certificate. Reissue is slow and expensive.
5. Not registering rental amendments (sub-letting, family changes) — invalidates the original agreement.

Final thought

The legal checklist is the unglamorous part of property transactions, but it is the part that prevents most disputes. For buyers and tenants at Cornerstone Worli, our team coordinates the full checklist as part of every transaction — sale, lease, or flatmate. Speak to salesfor a buyer’s walk- through, or browse rentals.