Maharashtra Registration Curbs: What It Means for Buyers of Unauthorised Flats

What happened?

The Times of India reported that the state government has barred sub-registrars from registering property documents when mandatory permissions and supporting papers are missing. They must also refuse when a flat's area is greater than what the sanctioned building plan shows. A revenue department circular dated Oct 12 carries these instructions.

According to the paper, the circular came out of a meeting held in September under revenue minister Chandrashekhar Bawankule, aimed at buildings put up without permission and flats sold with extra area. The government said buyers have lost money through such practices. The curbs apply to first-sale agreements, sale deeds, apartment deeds and transfer documents for units in construction projects statewide. The registration department had also made recommendations after the Mundhwa land scam, and these have been folded into the instructions.

The paper said the paperwork depends on whether a project must register with MahaRERA. Such projects need the MahaRERA registration certificate or an occupancy certificate, plus the sanctioned plan showing the unit's area. Other projects need a construction permission or commencement certificate, the sanctioned plan, a zone certificate and a measurement or survey plan. Sub-registrars who knowingly register violating documents face departmental inquiries. A related TOI report said documents presented outside the taluka will now get prior scrutiny from senior officials.

Which sectors are affected?

• Maharashtra residential resale and first-sale registrations
• Unauthorised and non-compliant buildings
• Apartment projects with area mismatches against sanctioned plans
• Sub-registrar offices and the registration department

Potential impact

Registration is the step that gives a buyer legal title on record, so a refusal at the sub-registrar's desk can stall a deal outright. Units in buildings without permissions, or sold with more area than sanctioned, are the most exposed. Their saleability and financing prospects may weaken, while compliant projects could see smoother paperwork.

The effect on prices is uncertain. Compliant stock may gain a relative premium in trust, and non-compliant stock could face discounts or longer sale times. How strictly local offices apply the circular will decide how quickly this shows up, and the source does not say how existing buyers with pending papers will be handled.