Mumbai is one of the most expensive real estate markets in the world. When you are planning to invest in a property here, you have various choices – under-construction, ready-to-move in properties and resale properties. Each has its own advantages and disadvantages. However, resale properties are one of the practical solutions when you don’t want to take the risk of investing in an under-construction property and don’t have enough financial resources to invest in a brand new ready-to-move-in property. Having said that, buying a resale property in Mumbai requires too much due-diligence, compliance with state-housing laws and following a set of processes. In this guide, we mention in detail the steps to follow while investing in a resale flat in Mumbai.
What is a resale property?
A property that was previously owned by one or more people and has been sold to a new buyer now is known as a resale property. These may be old properties, purchase of which will need documents such as transfer of ownership, occupancy certificate, no-objection certificate etc. Note that resale properties may be new properties also, if the first buyer sells his under-construction property to another buyer.
What are the advantages of buying a resale flat in Mumbai?
Mentioned are some of the advantages of buying a resale flat in Mumbai.
- Less expensive: Resale properties are budget friendly as compared to new properties in the same location. For instance, a property in Bandra (W) which is around 20 years old will be comparatively cheaper than a brand new property in Bandra (W).
- Immediate possession: When you are looking at a property for immediate possession, then a resale property best fits the need.
- Presence of established facilities: When you buy a resale property, the location and the infrastructure may already be established, making it advantageous. So, if a family is shifting, they would have a clear idea of the public transport available, schools and hospitals present nearby, banks and shopping areas etc.
- Clarity on configuration: One gets a clear idea of the property configuration that he is investing in as he sees the property itself in real and not a sample flat.
- Clarity on amenities, facilities and common area: Also, in addition to that the person will get an idea about the amenities and the common area including parking that will come along with the property. You will get an idea on where the parking is – if it’s easy to access, if it is stilt parking or open parking etc.
- No GST: One of the reasons why people prefer resale or ready-to-move-in properties is because people don’t have to pay GST on these types of properties.
What are the points to investigate while buying a resale flat in Mumbai?
- Due –diligence: One has to do a lot of due-diligence with respect to all aspects of the property- property title ownership, encumbrance, financial default, mortgage, if any structural damage to the building, changes to the blue print design etc. As part of due-diligence, it’s a good idea to check the MahaRERA website for the builder’s details. While old projects may not come under the purview of MahaRERA, if the resale property is one constructed after 2017, one can check when the project was registered, if the project ran into any litigation, complaints that are registered against the developer etc.
- Infrastructure: One has to completely understand if the area is self-sustained in terms of presence of basic and advanced infrastructure. Also, one should identify how the location turns especially during monsoons because Mumbai is well known for its heavy rainfall. One won’t be really happy buying a resale flat in an area that will be flooded during monsoons so much so that it is difficult to commute. A case in point is that of Mr Pranav Bisht who bought a resale flat in Tilak Nagar. While the property is centrally located with the railway station, mall, eateries and highway at close proximity, the building in which he bought the resale flat is next to a gutter and this is the source of mosquitoes which infests the place. Also, the building has issues related to water since it has smaller tanks- two critical things required for smooth functioning of day to day life. As part of collecting information, one should talk to neighbours and tenants (in particular- who have no vested interest in the property) and get to know how it is to stay in the property.
- Structural safety: While investing in a resale property, do talk to residents staying in the complex/building to understand any issues related to the structure of the building. Understand that changes made to the structure of the building that are not approved by the local body will have an impact on its strength in the long run. Check out if the building that you are looking in has issues related to seepage and leakage.
- Presence of RERA guarantee: This is valid if a resale flat in a new project has been purchased. In such a case the RERA guarantee that is granted for 5 years may exist for some amount of time. In case an older property has been bought on resale, it’s a good idea to check if developer support or post possession support is still valid.
Documents to check before buying a resale flat
Title of the property
- Verify the property documents to ensure that the seller has clear title for the property. This has to be done by checking the:
- Registered sale deed of the owner (seller)
- Index –II
- No dispute in ownership
- Stamp duty have been paid and property is duly registered by paying registration fee. Note that a valid title is the one which is registered and a sale that is done using general power of attorney (GPA), on the basis of will etc. are not considered legal.
Encumbrances
Check for encumbrances and ensure property is not under any dispute, mortgaged etc. For this, check the encumbrance certificate. This can be viewed online or from the SRO office.
Property tax bill
Check the utility bill payments done by the seller and the latest property tax payments done by him. All property tax receipts should be paid else it will be the responsibility of the new owner to pay the property tax bills (retrospective).
Society NOC and Transfer of ownership of property permission
Most resale properties in Mumbai are part of a cooperative housing society. Mentioned below are documents you will need to check before buying a resale property.
Society’s no objection certificate (NOC). Without this, if the seller sells the property, then the new owner won’t get legal status of ownership. The new owner may be subjected to legal disputes with the society. Note that if the resale flat belongs to a project where society is still not formed and is under the developer, then the seller should get the NOC from the developer.
- Original share certificate and the updated certificate with the seller’s name.
- The application form to transfer the share certificate to the buyer’s name.
After due diligence, once it is decided that you are buying the resale property, the next step is to pay down payment. Arrange for the financials for the property, pay the stamp duty and register the property in your name.
How much is the stamp duty and registration charges for a resale property in Mumbai?
In Mumbai, the stamp duty and registration charges for a resale property are mentioned below:
Stamp duty of resale flat in Mumbai in 2025
| Areas in Mumbai | Stamp duty in Mumbai for men | Stamp duty in Mumbai for women | Registration charges |
| Within the municipal limits of any urban area | 6% of property’s market value | 5% of property’s market value | 1 % of the property value |
| Within the limits of any municipal council/ panchayat/ cantonment of any area within MMRDA | 4% of property’s market value |
3% of property’s market value |
1 % of the property value |
| Within the limits of any gram panchayat | 3% of property’s market value | 2% of property’s market value | 1 % of the property value |
Additionally, if the value of the property is more than Rs 50 lakh, according to section 194-IA of IT Act, the buyer must deduct 1% TDS from the consideration value. Using Form 26QB, this has to be deposited to the government.
What should the sale deed of a resale flat in Mumbai include?
- Resale flat number, carpet area, society name, location and survey number.
- Clear title of the owner that has been confirmed.
- Total consideration value and payment schedule, the earnest money deposit that has been paid, the tranches of payment decided and in case home loan has been availed, details of the lender.
- Date of possession of the property.
- Clause that indemnifies the buyer from past liabilities, taxes and disputes.
- Dispute resolution arbitration in Mumbai.
Housing.com POV
Resale properties are a very sought after property type where the buyer usually gets all the required information if due diligence is done properly. In case of buying a resale flat, ensure that you as the buyer leave no stone unturned and get as much information about the property as you can. A better way to do this is to engage a good lawyer who will do all the groundwork for you.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |