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.

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See also: Can you rent your Mhada flat?

How to sell a 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.

When the five year time frame has exceeded and you want to sell the property, follow the below mentioned steps.

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 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.

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

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 a 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 bought and held 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 a 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 in case any of the rules mentioned by Mhada is not followed, the Mhada has the authority to revoke the property ownership.

FAQs

Can the Mhada housing unit be used for commercial activities by tenants?

No. In case found guilty, the Mhada can ask the tenant to vacate the property.

What are the transfer fees that a buyer should pay Mhada for transferring Mhada ownership from seller to his name?

The buyer has to pay Mhada a transfer fee of Rs 35,000.

What is the lock-in period before which you can’t sell the Mhada property?

You cannot sell Mhada property till five years from date of possession.

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

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