by Deepak Sawant 
Mumbai’s property market is heating up again. After a few years of uncertainty, demand is back, registrations are hitting record highs, and redevelopment projects are reshaping the city skyline. But for a first-time homebuyer, this fast-paced market can be overwhelming — and risky.
From land scams and illegal parking sales to understanding RERA rules and verifying documents like the 7/12 extract, there’s a lot to know before you invest your hard-earned money. This comprehensive guide simplifies the latest trends, laws, and safety tips so you can buy a home confidently.
Mumbai Real Estate Market Snapshot (2024–2025)
The Mumbai property market is experiencing strong growth, with the following key trends:
1. Record-Breaking Registrations
Property registrations have surged in 2025, with more deals being signed across mid-income and luxury housing segments. According to The Economic Times, this is Mumbai’s fastest run toward the one-lakh mark for yearly registrations.
What this means for buyers:
Demand is high, and competition is fierce. Don’t rush into a deal just to secure a property. Always verify the project status, title documents, and builder credentials before paying any token amount.
2. Redevelopment is Driving Supply
Much of Mumbai’s new housing comes from redevelopment of old buildings, especially in prime areas. While this creates opportunities, it also brings legal complexity and delivery delays.
Tip for buyers:
If you are buying in a redevelopment project, check:
- Builder’s track record for past projects
- Sanctioned plans and approvals from BMC
- Possession timelines in writing
3. RERA is Helping, But Delays Persist
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has strengthened buyer protection by requiring developers to register projects and maintain escrow accounts. However, according to The Times of India, more than 7,000 complaints are currently pending, causing delays.
Practical takeaway:
RERA is a great tool to resolve disputes, but don’t expect instant solutions. Keep payment records and communications documented in case you need to file a complaint.
How to Avoid Property and Land Scams
Frauds are unfortunately common in Mumbai’s real estate market. Here are the major scams and how to avoid them.
1. Common Types of Property Scams
- Forged title documents and fake seller claims
- Illegal parking space sales beyond sanctioned limits
- Kabza scams – illegal occupation of property
- Fake project approvals
Safety checklist:
- Get a certified title search for 30 years
- Check the Encumbrance Certificate
- Verify RERA registration for under-construction flats
- Make payments only via bank transfer or cheque
2. Understanding the 7/12 Extract
The 7/12 extract (Satbara Utara) is a key land record in Maharashtra. It shows:
- Owner’s name
- Survey number and plot area
- Land type (agricultural or NA)
- Cultivation details
You can check it online through the Maharashtra Bhulekh portal. Always verify that the seller’s name matches the records and check for any encumbrances or disputes.
3. Verifying Land Boundaries
Never rely on verbal assurances about plot boundaries. Instead:
- Hire a licensed surveyor for a site plan
- Match survey numbers with the 7/12 extract
- Check the cadastral map and approved layout from BMC
This helps you avoid future disputes with neighbors or authorities.
4. The Truth About Cash Payments
Many people believe paying in cash makes property deals simpler or cheaper. In reality, large cash payments are illegal and risky.
Why avoid cash deals:
- Violates the Income Tax Act (Sections 269ST/269SS)
- May fall under the Benami Transactions Act
- Can lead to penalties and legal trouble
Solution: Always pay via bank transfer, cheque, or RTGS, and keep receipts for every transaction.
5. Agricultural vs. NA Plots
Agricultural land can only be used for farming. For residential or commercial construction, the land must be converted to NA (Non-Agricultural) status through a formal process.
Ask for these documents before buying:
- NA conversion order from revenue authorities
- Proof of zoning approval from the local planning authority
Buying agricultural land without proper conversion can lead to demolition or legal penalties.
6. Parking Lot Frauds
Illegal parking scams are rampant in Mumbai, with fake operators and builders selling more slots than approved.
How to protect yourself:
- Ensure the sale agreement clearly mentions your parking space
- Verify the building’s sanctioned parking count with BMC
- Check society records and minutes for allotment history
RERA Rules: Your Safety Net
The Real Estate (Regulation and Development) Act (RERA) protects homebuyers by holding developers accountable.
How to File a Complaint with MahaRERA
- Visit the official MahaRERA portal
- Create an account and upload required documents (sale agreement, payment proof, correspondence)
- Track your case status online
Expected timeline: RERA aims to resolve complaints within 60 days, but in reality, some cases may take longer due to backlog.
Why Projects Get Stalled in Mumbai
Thousands of projects in Mumbai face delays or remain unfinished. The most common reasons include:
- Lack of funding or heavy developer debt
- Pending government clearances
- Land ownership disputes
- Complex redevelopment agreements
Buyer tip:
Before booking an under-construction flat:
- Review the builder’s RERA disclosures
- Check for any litigation listed on the RERA portal
- Prefer projects with escrow accounts and bank tie-ups
Legal Myths and Clarifications
Do Tenants Get Ownership After 11 Years?
No. Under Indian law, a tenant cannot automatically claim ownership after 11 years. The actual legal period for adverse possession is 12 years, and strict conditions must be met. If rent is paid regularly, this rule does not apply.
Sale Agreement vs. Sale Deed
- Sale Agreement: Outlines terms like price, possession date, and payment schedule.
- Sale Deed: The actual legal transfer of property ownership, which must be registered at the sub-registrar office.
Always ensure your sale deed is registered — agreements alone do not prove ownership.
Occupation Certificate (OC)
The OC is issued by BMC to certify that a building is safe and built according to approved plans.
Why it matters:
- Without an OC, you cannot legally occupy the property
- Banks may refuse home loans or withhold disbursements
- It’s mandatory under RERA rules
Property Disputes During Divorce
When couples separate, property ownership becomes a major point of conflict.
- If both names are on the title, the property is usually split or sold.
- If only one spouse’s name is on the title, courts may still award a share depending on contributions and circumstances.
Tip:
Couples buying property together should register both names and keep clear financial records to avoid future disputes.
Step-by-Step Checklist for First-Time Buyers
Here’s a quick summary of actions to take before you sign:
- Verify RERA registration for the project and developer
- Conduct a title search for 30 years of ownership history
- Check approvals, building plan, and final OC
- Avoid cash payments — always use banks
- Review the sale agreement with a property lawyer
- Confirm parking allotment and common area rights
- Verify NA conversion if buying land
- File a RERA complaint promptly if issues arise
Final Advice: Protect Yourself Before You Invest
Buying a home in Mumbai is a dream for many, but the process is full of challenges. The key to a safe purchase is due diligence:
- Never skip document verification
- Avoid shortcuts like cash payments
- Use RERA and legal tools to your advantage
With the right preparation, you can secure your dream home and protect yourself from costly mistakes.
