How to sell your Mhada flat?

The Maharashtra Housing and Area Development Authority (Mhada) provides affordable housing to the people of Maharashtra by means of the Mhada lottery. There are various Mhada Boards in the state which host the Mhada lottery and offer housing units that help the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) sections to a great extent. The Mhada also services to the High Income Group (HIG) segment in some areas such as Tardeo in Mumbai. Once the Mhada flat is bought by a person, can he sell it? If yes, what is the process? These are common queries posted by people and we will address them in this guide.

See also: Can you rent your Mhada flat?

Facts related to sale of Mhada flat

A Mhada flat cannot be sold for 5 years after buying it from the Mhada lottery. Also, the initial home buyer should live in the Mhada property for five years before selling it. Once the five year time frame has elapsed and you want to sell the property, follow the steps mentioned below.

Valuation of the property

You can arrive at the value of the property by taking into consideration the location, size, amenities, floor, age of the Mhada property and the ready reckoner rate in that area.

You can also evaluate the value of the property by

• Comparing your flat to other similar Mhada properties that may have been sold in the same area.
• Getting help from a registered property valuer who will give the right value.

Steps to sell the Mhada property  

• Once you have finalised the buyer, you have to follow the below mentioned steps for transfer of Mhada flat in the new buyer’s name.
• Make an agreement of sale with the new buyer that will include the seller and buyer details and the price at which the property is being sold.
• The seller should collect the down payment from the buyer.
• Then the buyer should pay the stamp duty at the sub-registrar office (SRO) under whose jurisdiction the property falls.
• Once the stamp duty is paid, the property is registered in the buyer’s name.
• Once the property has been bought, the new buyer has to submit the copy of the property registration papers to the Mhada which will issue the transfer certificate.
• The new buyer has to pay Mhada around Rs 35,000 as transfer fees.
• This transfer of property may take around 23 days.

See also: How to register, apply for Mhada Pune Board lottery online?

Documents required for executing sale deed

• Original allotment letter from the Mhada or transfer letter or Index II or possession letter issued by Mhada to the original allottee.
• Seller’s Aadhaar card and PAN card
• Buyer’s Aadhaar card and PAN card
• Society maintenance bill
• Share certificate given by the society to the owner
• No-dues certificate given by the society to the owner
• Electricity bill and water bill
• Occupation certificate copy
• Property card of the Mhada plot
• Municipal body assessment copy  For eg. BMC assessment copy
• Witnesses

See also: Mhada Lottery Mumbai 2025: Registration, application, documents

Documents for transfer of housing units under Mumbai Mhada Board 

• An application that has to be bought from the office of Estate Manager, MHADA Board, Griha Nirman Bhavan, Kala Nagar, Bandra (East), Mumbai – 400 051 for Rs 10 and filled.
• Allotment letter, possession letter that was issued by Mhada to the housing unit’s original allottee.
• Aadhar Card, Pan Card and 16 passport size photos of the buyer.
• Aadhar Card, Pan Card and 10 passport size photos of the seller.
• Certified copy sale deed or gift deed or agreement for sale
• Property Card of the Mhada housing unit
• NOC from the co-operative Society or in case it is not formed then an affidavit on Rs 100 stamp paper mentioning that the co-operative housing society has not been formed.
• Latest payment receipt to Mhada showing that there are no arrears.
• Charges towards transfer of tenancy rights that can be paid online, through demand draft or pay order of some nationalised bank. Note that the transfer fee charges for Mill Worker Flats is Rs 7,500.
• Affidavit and indemnity bond of both seller and buyer is required.

The form and the documents should be submitted online on Aaple Sarkar website and a copy of the document should be submitted in the Bandra (East) Mhada office.

Should you buy a Mhada resale flat?

Among the many properties available in the real estate market, should you buy a Mhada flat on resale?

Advantages of buying a Mhada property

• Mhada provides affordable housing in both peripheral and prime locations.
• The price of the Mhada flat is very aptly priced so that it helps people across various segments. If you buy and hold on to this property, the value appreciates at par with the existing market rate, which is a plus.
• As Mhada lottery is government led, the property is priced cheaper as compared to properties sold by private developers. Thus, people from EWS and LIG can buy a Mhada flat or even a resale Mhada flat.

Disadvantages of buying a Mhada property

• After accepting a Mhada housing unit, there is a lock in period of 5 years in which you can’t sell the Mhada property.
• While you may have bought the Mhada property, Mhada will always have a say as the property has been constructed on land belonging to Mhada, mention reports.
• Land rent has to be paid by society members annually to Mhada.

Housing.com POV

The biggest advantage of Mhada housing units is that they are affordably priced even when they are located in prime locations and enjoy excellent connectivity. Housing.com regularly educates on how to apply for the Mhada lottery across various boards and buy an affordable house. However, if by chance you are unsuccessful as a beneficiary, the next best bet is to buy a resale Mhada property. However, there are some important clauses that have to be followed. If any of the rules mentioned by Mhada are not followed, the Mhada has the authority to revoke the property ownership.

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