The words on your paperwork, and what they leave out.

Also called Real Estate (Regulation and Development) Act, 2016

The central law that regulates how residential projects are sold in India. It requires projects to be registered before they are advertised, fixes how area is measured, controls how buyers' money is used, and gives buyers a regulator to complain to. In Maharashtra it is administered by MahaRERA.

What it does not tell you

RERA regulates the sale, not the quality of the building. A registered project can still be badly built; RERA gives you remedies after the fact, such as the five-year defect liability, rather than a guarantee up front.

See also:MahaRERA registration number, Carpet area, Designated account, Defect liability period

Check with:MahaRERA

Also called RERA number

The number MahaRERA assigns to a registered project or phase. A developer must quote it in every advertisement for that project. Entering it on the MahaRERA website opens the project's public file: approvals, title report, declared completion date, and quarterly progress.

What it does not tell you

It identifies a project or phase, not the developer, and not every building a developer has. Check that the number on the brochure belongs to the exact tower and phase you are buying into, then read the file behind it rather than stopping at the fact that it exists.

See also:RERA, Quarterly progress report, Revised completion date, Title report

Check with:MahaRERA

Also called RERA escrow account, the 70% account

A separate bank account for each registered project into which the developer must deposit 70% of the money collected from buyers (Section 4). It can only be spent on that project's construction and land cost, and each withdrawal must be certified by the project's engineer, architect and a chartered accountant.

What it does not tell you

It ring-fences most of your money for this project, but not all of it, and it does not mean the funds are sufficient. A project can comply fully and still be short of money if sales are slow or costs rise.

See also:RERA, Quarterly progress report, Construction-linked payment plan

Check with:MahaRERA

Also called QPR, Forms 1, 2 and 3

The update a developer files on MahaRERA every quarter for each registered project: bookings, construction stage, and certificates from the architect (Form 1), engineer (Form 2) and chartered accountant (Form 3) on progress and on money drawn from the designated account. It is public on the project's MahaRERA page.

What it does not tell you

It is the developer's own filing, certified by professionals the developer appoints. Read it as a claim worth checking against the site, not as an inspection. A visit to the slab tells you more than any form.

See also:MahaRERA registration number, Designated account

Check with:MahaRERA

Also called RERA possession date

The date by which the developer has declared, on MahaRERA, that the project will be complete. It can be extended by MahaRERA on application. It is separate from the possession date written into your agreement for sale, which is the date your own rights are measured against.

What it does not tell you

The date on MahaRERA is not automatically your possession date, and a later revision does not rewrite your agreement. If the two differ, the agreement is the one to read closely before you sign.

See also:Possession date, Delay compensation, Agreement for sale

Check with:MahaRERA

The date, written into your registered agreement for sale, by which the developer promises to hand you the apartment. Under RERA it must be stated in the agreement, and a missed possession date entitles you to interest or a refund under Section 18.

What it does not tell you

Possession is not the same as being able to move in legally. A flat should not be occupied before the building has an occupancy certificate, so ask for the OC alongside the keys, not afterwards.

See also:Delay compensation, Occupancy certificate, Possession letter

Check with:MahaRERA

Also called Section 18 interest

Under Section 18 of RERA, if the developer fails to hand over possession by the date in the agreement, a buyer who stays in the project is owed interest for every month of delay until possession. A buyer who chooses to withdraw is owed a refund of what they paid, with interest.

What it does not tell you

The right is automatic; the payment usually is not. Most buyers have to claim it, and some agreements try to define the date loosely. A fixed calendar date in the agreement is worth more than any promise about it.

See also:Possession date, Revised completion date, Agreement for sale

Check with:MahaRERA

Under Section 14(3) of RERA, if a structural defect, or a defect in workmanship, quality or services, is reported within five years of handover, the developer must fix it within 30 days at no charge. If they do not, the buyer can claim compensation.

What it does not tell you

It covers defects, not wear, and it depends on you reporting them in writing within the five years. Keep dated photographs and written complaints; a phone call to the site office is not a record.

See also:RERA, Possession letter

Check with:MahaRERA

Also called Section 14 consent

Once a project is registered, the developer cannot change the sanctioned plans or specifications of your apartment without your consent, and cannot make other changes to the building without the written consent of at least two-thirds of the buyers (Section 14). Minor changes that do not affect the structure are allowed.

What it does not tell you

Consent forms are sometimes bundled into booking paperwork. Read anything you are asked to sign about future plan changes, extra floors or additional FSI; signing it is the consent the law asks for.

See also:Sanctioned plan, FSI

Check with:MahaRERA

Also called Approved building plan

The building plan approved by the planning authority (PMC, PCMC or PMRDA in the Pune region). It fixes the footprint, floors, apartment layouts, open spaces and parking. The approved plan and its revisions are part of the project's file on MahaRERA.

What it does not tell you

A plan can be sanctioned in stages, so the approved plan may cover fewer floors than the brochure shows. Check the floor your flat is on is inside the current sanction, not a future one.

See also:Commencement certificate, Changes to the sanctioned plan, FSI, PMC, PCMC and PMRDA

Check with:Pune Municipal Corporation, MahaRERA

Also called CC

Permission from the planning authority to start construction under the sanctioned plan. In practice it is often issued in stages, up to plinth first and then further floors as approvals and premiums are cleared.

What it does not tell you

A CC means work may begin, not that the building is approved to be lived in. A CC that stops below your floor means your flat is not yet permitted to be built.

See also:Sanctioned plan, Occupancy certificate

Check with:Pune Municipal Corporation

Also called OC

The certificate the planning authority issues after inspecting a completed building, confirming it was built to the sanctioned plan and is fit to be occupied. It is the document that makes moving in legal, and buildings are usually sold GST-free only once it, or a completion certificate, is in hand.

What it does not tell you

A part OC can cover only some floors or wings. Make sure the OC you are shown names your wing and floor. Keys handed over before an OC are possession without the right to occupy.

See also:Commencement certificate, Possession date, GST on under-construction property, Conveyance deed

Check with:Pune Municipal Corporation

Also called Pune planning authorities

The three main planning authorities in the Pune region. Pune Municipal Corporation (PMC) covers the core city, including Erandwane, Kothrud and Koregaon Park. Pimpri Chinchwad (PCMC) covers its own municipal area. PMRDA plans the wider metropolitan region outside both.

What it does not tell you

The authority decides who approves the building and who supplies water and roads, and the answers differ. A project described as being 'in Pune' can sit under any of the three; the sanctioned plan names which.

See also:Sanctioned plan, UDCPR

Check with:Pune Municipal Corporation, Pune Metropolitan Region Development Authority

Also called Unified Development Control and Promotion Regulations

The common building rules for Maharashtra outside Mumbai, applied by PMC and other Pune authorities. They set how much can be built on a plot, height limits, setbacks, parking, open space and fire requirements.

What it does not tell you

The rules decide what may be built, not what will be. A plot's potential under UDCPR is not a promise that a particular project will use it, or use it the way a brochure suggests.

See also:FSI, TDR, PMC, PCMC and PMRDA

Check with:Pune Municipal Corporation

Also called Floor space index, FAR

The ratio of total built floor area to plot area. An FSI of 2 on a 1,000 square metre plot allows 2,000 square metres of construction across all floors. In Pune it is built from basic FSI, premium FSI bought from the authority, and TDR brought in from elsewhere.

What it does not tell you

Higher FSI means more apartments on the same land, which is more neighbours, more cars and more load on the same lifts and open space. FSI tells you the density a project is allowed, not the one it will feel like.

See also:TDR, UDCPR, Changes to the sanctioned plan

Check with:Pune Municipal Corporation

Also called Transferable development rights

Development rights created when land is surrendered to the authority, usually for a road or public reservation, which can be sold and used to build extra floor area on another plot. Pune has an active TDR market, and the amount a plot can absorb depends largely on the width of the road it faces.

What it does not tell you

TDR loaded onto a project after you buy can mean more floors than you were shown. That is why the plan-change consent rules matter, and why it is worth asking how much of the permissible FSI the current plan already uses.

See also:FSI, Changes to the sanctioned plan

Check with:Pune Municipal Corporation

Also called RERA carpet area

The net usable floor area of an apartment, measured inside the external walls. Under RERA it includes internal partition walls but excludes external walls, service shafts, and exclusive balconies, verandahs and open terraces. Apartments in registered projects must be priced on carpet area.

What it does not tell you

Two flats with the same carpet area can live very differently. It says nothing about how much of the area is corridor, how light reaches the rooms, or how big the balcony you are also paying for is.

See also:Built-up area, Super built-up area, Exclusive balcony and terrace area

Check with:MahaRERA

Carpet area plus the thickness of the external walls, and usually the apartment's own balcony. It is a construction measure rather than a usable one, typically larger than carpet area by the space the walls occupy.

What it does not tell you

There is no single legal definition of built-up area in a sale, so two developers may calculate it differently. Compare flats on RERA carpet area, which is defined.

See also:Carpet area, Super built-up area

Also called Saleable area

Built-up area plus a proportionate share of common areas such as lobbies, staircases, lift wells and sometimes the clubhouse. It was the usual basis for quoting prices before RERA, and the gap between it and carpet area is called loading.

What it does not tell you

A price per square foot on super built-up area looks lower than the same price on carpet area. Convert every quote to carpet area before comparing; for a registered project, that is the figure the agreement must show.

See also:Loading, Carpet area

Also called Loading factor

The percentage by which super built-up area exceeds carpet area. A 1,000 square foot carpet flat sold as 1,350 square feet super built-up carries 35% loading. It reflects how much common space, and how many walls, the building spreads across each apartment.

What it does not tell you

Low loading is not automatically good: generous lobbies, wider corridors and real amenities all raise it. What matters is whether the common area being charged for is space you would actually use.

See also:Super built-up area, Carpet area

Balconies, verandahs and open terraces attached to and used only by one apartment. RERA excludes them from carpet area, so an agreement will usually list them separately with their own measurement.

What it does not tell you

Being listed separately does not mean they are free. Check whether the price covers them, and whether an open terrace is sold to you or only allotted for your use.

See also:Carpet area

Parking under a building raised on columns (stilt) or in the open compound. The Supreme Court held in 2010 (Nahalchand Laloochand v Panchali Co-operative Housing Society) that stilt parking is a common area that a developer cannot sell. A covered, enclosed garage can be sold as part of an apartment.

What it does not tell you

What you can receive for open or stilt parking is an allotment, a right to use a space, not ownership. Read whether the agreement 'sells' or 'allots' a space, and whether the society can later reassign it.

See also:Co-operative housing society

Also called Bedroom, hall, kitchen

The shorthand for an apartment's configuration: a 3 BHK has three bedrooms, a living room (the hall) and a kitchen. Bathrooms, studies and servant rooms are described separately, as in 3.5 BHK or 3 BHK with study.

What it does not tell you

BHK counts rooms, not size. A 3 BHK in one project can have less carpet area than a 2 BHK in another, so the configuration is where comparison starts, not where it ends.

See also:Carpet area

Also called Application money

The first payment that reserves an apartment, made against an allotment letter. Under Section 13 of RERA a developer may not take more than 10% of the apartment's cost before a written agreement for sale is signed and registered.

What it does not tell you

Ask in writing what happens to the booking amount if you cancel before the agreement, and how much is deducted. The 10% cap limits how much you can be asked for, not how much you can lose.

See also:Allotment letter, Agreement for sale

Check with:MahaRERA

Also called Consideration

The price of the apartment written into the agreement for sale. It is the base on which stamp duty, registration fee, GST and TDS are worked out, unless the government's ready reckoner value for the same flat is higher.

What it does not tell you

It is rarely the full cost of the home. Stamp duty, registration, GST on under-construction flats, parking, society charges and maintenance deposits are usually extra. Ask for an all-in figure before comparing projects.

See also:Ready reckoner rate, Stamp duty, GST on under-construction property

Check with:IGR Maharashtra (stamp duty and registration)

Also called RR rate, Annual Statement of Rates (ASR)

The government's minimum valuation for property in each area of Maharashtra, revised periodically and published by IGR Maharashtra. Stamp duty is charged on the agreement value or the ready reckoner value, whichever is higher.

What it does not tell you

It is a tax floor, not a market price. A flat can be worth well above or, in a soft market, below its ready reckoner value, and the rate tells you nothing about a specific building's quality.

See also:Stamp duty, Agreement value

Check with:IGR Maharashtra (stamp duty and registration)

The state tax on the document that transfers or agrees to transfer property. In Maharashtra it is paid when the agreement for sale is executed, before registration, on the higher of the agreement value and the ready reckoner value. The rate depends on where the property is; IGR Maharashtra publishes the current rates and a calculator.

What it does not tell you

This page gives no percentage on purpose: rates and surcharges change, and a stale figure is worse than none. Work out the exact amount for your flat with IGR's calculator or your lawyer before you budget.

See also:Registration fee, Ready reckoner rate, Agreement for sale

Check with:IGR Maharashtra (stamp duty and registration)

The fee paid to the Sub-Registrar to register the agreement for sale or conveyance under the Registration Act, 1908. In Maharashtra it is a percentage of the property value subject to a cap; IGR Maharashtra publishes the current figure.

What it does not tell you

Paying the fee and registering the document records the transaction; it does not check that the seller had good title to sell. That is what a title search is for.

See also:Stamp duty, Index II, Title search

Check with:IGR Maharashtra (stamp duty and registration)

GST is charged on payments for an apartment bought while it is still being built. No GST is charged when a completed apartment is sold after the occupancy or completion certificate has been issued. The rates differ for affordable and other housing; the CBIC publishes the current ones.

What it does not tell you

The GST saving on a ready flat is real, but it is one line in the comparison. An under-construction flat is often priced lower to start with, so compare total cost, not tax alone.

See also:Occupancy certificate, Agreement value

Check with:CBIC GST

When the price of a property is ₹50 lakh or more, the buyer must deduct 1% of each payment as tax at source and deposit it with the Income Tax Department in the seller's name, filing the prescribed form. The obligation sits with the buyer, not the developer.

What it does not tell you

Banks disbursing a home loan do not always deduct it for you. If it is missed, the interest and penalty fall on the buyer, so confirm who is filing it for each instalment.

See also:Agreement value, Construction-linked payment plan

Check with:Income Tax Department

Also called CLP

A payment schedule in which instalments fall due as the building reaches stages: plinth, each slab, brickwork, finishing, possession. It is the usual plan for under-construction apartments, and the stages should be listed in the agreement for sale.

What it does not tell you

A demand letter says a stage is complete; it does not prove it. Check the stage on site or against the quarterly progress report before paying, particularly late in the schedule.

See also:Quarterly progress report, Designated account, Subvention scheme

Also called No-EMI-till-possession plan

An arrangement in which the buyer takes a home loan, the bank pays the developer up front, and the developer pays the interest until possession. It is sold as paying nothing until you move in.

What it does not tell you

The loan is in your name. If the developer stops paying the interest, the bank collects from you, for a flat you do not yet have. Read who is liable if the project is delayed before signing up.

See also:Construction-linked payment plan, Possession date

The letter a developer issues when you book, identifying the apartment, its carpet area, the price and the payment schedule. MahaRERA has prescribed a standard format for it in registered projects.

What it does not tell you

It is not the agreement for sale and does not transfer anything. Until the agreement is registered your position rests on this letter, which is a good reason not to let that gap run long.

See also:Booking amount, Agreement for sale

Check with:MahaRERA

The registered contract in which the developer agrees to sell you a specific apartment and you agree to pay for it. It fixes the carpet area, price, payment stages, specifications, amenities and possession date. In Maharashtra stamp duty is paid on it and it is registered at the Sub-Registrar.

What it does not tell you

It is a contract to sell, not the conveyance of the land and building, which comes later in favour of the housing society. Everything you were promised and want to rely on should be written into this document, not left in the brochure.

See also:Allotment letter, Stamp duty, Index II, Conveyance deed

Check with:IGR Maharashtra (stamp duty and registration), MahaRERA

Also called Index 2

The extract from the Sub-Registrar's records that summarises a registered document: the parties, the property, the value and the stamp duty paid. It is the standard proof that an agreement or sale deed was registered, and older Index II records can be searched online through IGR Maharashtra.

What it does not tell you

It proves a document was registered, not that the seller owned what they sold. A chain of Index II entries is part of a title search, not a substitute for one.

See also:Agreement for sale, Title search, Registration fee

Check with:IGR Maharashtra (stamp duty and registration)

Also called Search report, due diligence

A lawyer's examination of the ownership history of the land a project stands on, usually going back at least 30 years, through land records, registered documents and court and encumbrance checks. It ends in a title report or certificate stating whether the title is clear and marketable.

What it does not tell you

A title report is an opinion as of its date, limited to the records searched. Ask how old it is and what it excludes. For a new project, the developer's report is on MahaRERA; for a large purchase, an independent search costs little by comparison.

See also:Title report, 7/12 extract, Property card, Encumbrance

Check with:MahaRERA

Also called Title certificate

The written result of a title search, signed by an advocate. Developers registering a project with MahaRERA must upload a title report for the project land, which any buyer can read on the project's MahaRERA page.

What it does not tell you

The developer's title report was commissioned by the developer. It is a useful starting point and a public commitment, but it was not written for you.

See also:Title search, MahaRERA registration number

Check with:MahaRERA

Also called Satbara utara

The Maharashtra land record that shows who holds a parcel of land, its area, its tenure and any charges noted against it. For land outside city survey limits it is the core record checked in a title search, including for land that a residential project is built on. It can be viewed on Mahabhumi.

What it does not tell you

It is a record of rights, not a title deed. It shows what has been entered into the register, not every agreement, heir or dispute affecting the land.

See also:Mutation entry, Property card, Title search

Check with:Mahabhumi (Maharashtra land records)

Also called City survey record, CTS extract

The urban equivalent of the 7/12. For land inside city survey limits, such as most of central Pune, the property card records the holder of each city survey (CTS) number, its area and changes over time.

What it does not tell you

Like the 7/12, it records rights as entered, not a complete chain of ownership. A buyer's lawyer reads it alongside registered documents, not instead of them.

See also:7/12 extract, Mutation entry, Title search

Check with:Mahabhumi (Maharashtra land records)

Also called Ferfar

An entry in the land records recording a change in who holds the land: a sale, inheritance, gift or court order. The sequence of mutation entries is how the ownership history of the land under a building is traced.

What it does not tell you

A mutation entry updates the record; it does not create ownership. Ownership comes from the registered document or legal event behind it, which is why a title search reads both.

See also:7/12 extract, Property card, Title search

Check with:Mahabhumi (Maharashtra land records)

Any legal claim on a property that limits its free transfer, most commonly a mortgage. Developers often borrow against a project, so an apartment can be charged to the developer's lender until that lender releases it.

What it does not tell you

A project loan is normal. What matters is that the lender's no-objection or release for your apartment is in place before the agreement is registered, so your flat is not still security for someone else's debt.

See also:Title search, Agreement for sale

The letter in which the developer formally hands the apartment over to you, with its date. It starts the five-year defect liability period and usually the date from which maintenance charges are payable.

What it does not tell you

Signing it is often treated as accepting the flat in its current state. Inspect first, list defects in writing, and attach the list or note it on the letter before signing.

See also:Defect liability period, Occupancy certificate, Maintenance charges

Also called CHS

The body that apartment owners form to own and run the building, registered under the Maharashtra Co-operative Societies Act. Each owner is a member. Under Section 11(4)(e) of RERA, the developer must enable its formation within three months of a majority of apartments being booked.

What it does not tell you

Forming the society is not the same as the society owning the building. Until the conveyance is executed, the land and structure can still stand in the developer's name.

See also:Share certificate, Conveyance deed, Maintenance charges

Check with:Commissioner for Co-operation, Maharashtra, MahaRERA

The certificate a co-operative housing society issues to each member, recording their shares in the society and the apartment they relate to. It is the society's record that you are the member for that flat.

What it does not tell you

It records membership, not ownership of the land. Your ownership comes from the registered agreement or sale deed, and the society's from the conveyance.

See also:Co-operative housing society, Conveyance deed

Check with:Commissioner for Co-operation, Maharashtra

Also called Society conveyance

The registered deed that transfers the land and building from the developer to the housing society. Section 17 of RERA requires it within the period set by local law, or within three months of the occupancy certificate where local law sets none.

What it does not tell you

Many older Pune buildings never received theirs, which can complicate redevelopment, loans and resale decades later. Ask a developer when conveyance was completed on their past projects.

See also:Deemed conveyance, Co-operative housing society, Occupancy certificate

Check with:Commissioner for Co-operation, Maharashtra, MahaRERA

The route a housing society takes when the developer fails to execute the conveyance. The society applies to the District Deputy Registrar of Co-operative Societies, who can order the conveyance to be registered without the developer's signature.

What it does not tell you

It works, but it is slow and depends on the society assembling documents the developer may hold. It is a remedy for a failure, not a substitute for choosing a developer who conveys on time.

See also:Conveyance deed, Co-operative housing society

Check with:Commissioner for Co-operation, Maharashtra

The monthly or quarterly amount each owner pays towards running the building: security, cleaning, lifts, common electricity, water and repairs. Before the society takes over, the developer usually collects an advance for an initial period at possession.

What it does not tell you

The early figure is an estimate set before the building's real costs are known. Ask what it is based on, and how the advance will be accounted for and handed over to the society.

See also:Sinking fund, Corpus fund, Possession letter

A reserve the housing society builds up from members' contributions to pay for major repairs and eventual reconstruction of the building. Maharashtra's model bye-laws set a minimum annual contribution linked to the construction cost.

What it does not tell you

A healthy sinking fund in a resale society is a sign of good management, but it is rarely large enough to rebuild. That gap is part of why old Pune societies turn to redevelopment.

See also:Maintenance charges, Redevelopment

Check with:Commissioner for Co-operation, Maharashtra

A one-time deposit collected from each buyer, usually at possession, to give the society a starting reserve. In redevelopment it also means a lump sum the developer pays each existing member.

What it does not tell you

It belongs to the society, not the developer. Ask when and how it will be transferred, and get it listed in the agreement rather than in a separate demand letter.

See also:Maintenance charges, Redevelopment

Also called No-objection certificate

A letter from the housing society confirming it has no objection to a member selling or mortgaging their flat, and usually that their dues are paid. Banks and buyers ask for it on resale.

What it does not tell you

It confirms the society's position, not the flat's title. On a resale purchase it sits alongside the seller's registered documents and share certificate, not in place of them.

See also:Share certificate, Co-operative housing society

Demolishing an old society building and rebuilding it with a developer, usually using extra FSI or TDR. Existing members receive new, often larger, flats and the developer sells the additional ones. In Maharashtra the process is governed by directives for co-operative housing societies.

What it does not tell you

The new flat is only as secure as the agreement behind it. Members should see the developer's finances, a registered agreement for the new flat, and a fixed date with penalties, not just a carpet-area figure.

See also:FSI, TDR, Corpus fund, Permanent alternate accommodation agreement

Check with:Commissioner for Co-operation, Maharashtra

Also called PAAA

The registered agreement in a redevelopment in which the developer commits to give each existing member a specific new flat, with its carpet area, location, amenities and completion date, plus rent or temporary accommodation during construction.

What it does not tell you

This, not the society's development agreement, is the member's own contract. Each member should check their individual PAAA names their flat and its timeline precisely.

See also:Redevelopment

Check with:Commissioner for Co-operation, Maharashtra