Property Due Diligence in Mumbai: A Complete Legal Checklist for Buyers

Purchasing property in Mumbai — whether residential, commercial, or industrial — is one of the most significant financial decisions an individual or business can make. The Mumbai real estate market, valued at over ₹2.5 lakh crore annually, is also one of the most legally complex in India. Without thorough due diligence, buyers risk title disputes, encumbrance issues, unauthorized constructions, and regulatory non-compliance that can lead to years of litigation.

At ESB Global Law Advisory, we have handled hundreds of property transactions across Mumbai's Ballard Estate, South Mumbai, BKC, Thane, and Navi Mumbai corridors. This guide distills our experience into a practical legal checklist that every buyer should follow.

1. Title Verification and Chain of Ownership

The first and most critical step in property due diligence is establishing a clear title. Under Indian property law, a seller can only transfer what they legally own. A defective title can render the entire transaction void.

What to verify:

• Original title deed (sale deed, gift deed, or partition deed) held by the current owner
• Complete chain of ownership for at least 30 years — each transfer must be legally documented
• Revenue records and property card (7/12 extract for land, property register extract for flats)
• Index II from the Sub-Registrar's office confirming registration of all prior transactions
• Verify there are no pending litigation or court orders against the property through court records search

2. Encumbrance Certificate (EC)

An Encumbrance Certificate is an official record from the Sub-Registrar's office that shows all registered transactions on a property over a specified period. It reveals mortgages, liens, and any charges that exist against the property.

In Maharashtra, the EC can now be obtained online through the Inspector General of Registration and Controller of Stamps (IGR Maharashtra) portal. We recommend obtaining the EC for a minimum period of 30 years to identify any dormant charges or historical claims.

3. RERA Compliance Check

Since 2017, the Real Estate (Regulation and Development) Act has fundamentally changed property purchases in Maharashtra. For any under-construction or newly launched project, RERA registration with MahaRERA is mandatory.

Key RERA checks include:

• Verify the project's MahaRERA registration number on maharera.mahaonline.gov.in
• Check the registered project completion date and compare against actual progress
• Review the developer's past project compliance record on MahaRERA
• Confirm that the carpet area in the agreement matches the MahaRERA registered carpet area
• Verify that 70% of buyer funds are deposited in the project escrow account as mandated by RERA

4. Municipal and Building Plan Approvals

Every construction in Mumbai requires approvals from the Brihanmumbai Municipal Corporation (BMC/MCGM). Unauthorized constructions — even partial deviations from approved plans — can face demolition orders.

Documents to verify:

• IOD (Intimation of Disapproval) — the initial building permission from BMC
• Commencement Certificate (CC) — authorizing the start of construction
• Approved building plan — compare actual construction against sanctioned plans
• Occupation Certificate (OC) — confirming the building is fit for habitation
• Fire NOC from the Mumbai Fire Brigade for buildings above 24 metres

5. Society and Redevelopment Checks (for Resale Flats)

If purchasing a resale flat in a cooperative housing society — which constitutes a significant portion of Mumbai's housing stock — additional verifications are necessary:

• Society registration certificate and latest audited financial statements
• No Objection Certificate (NOC) from the society for the transfer
• Share certificate transfer documentation
• Outstanding maintenance dues or special assessments
• If the society is under redevelopment — review the redevelopment agreement, developer credentials, and transit accommodation terms

6. Property Tax and Utility Verification

Outstanding property tax liabilities transfer to the new owner in Mumbai. Verify that all property tax payments to BMC are current through the BMC online portal. Similarly, confirm there are no outstanding electricity bills (BEST/Adani), water charges, or gas connections that could create future liability.

7. Physical Verification and Survey

Legal due diligence must be complemented by physical verification. Conduct a site inspection to confirm:

• The property boundaries match the title documents and survey records
• There are no encroachments or unauthorized occupants
• The actual construction matches the approved building plan
• Access roads and common areas are as represented