How to buy a MHADA property?

Hi there. I know how to buy MHADA flat as I did so last year. I’ll be able to share a detailed process with you here, that will help you go through the method step by step and buy the MHADA property. Let me get started with the complete procedure below.

How to Purchase MHADA Flat?

Here is the process:

• Allotment Letter and Provisional Letter: After the home allotment, you’ll gain the allotment letter and the provisional letter. They highlight the payment stages you’ll have to go through. The first one which is called the first instalment is equal to 25 percent of the property value and must be cleared within 45 days from the date of receiving the allotment letter.

• Paying the First Instalment: You get an additional 15 days to pay the first instalment beyond the 45-day limit. You must meet this deadline to avoid penalties.

• Paying the Second Instalment: The second payment covers the remaining 75 percent. You get 60 days to make the payment. MHADA also offers an additional 90 days after the 60 days to pay the second instalment. You are presented with two options here, one being paying the amount upfront or choosing a home loan.

• Home Loan Approval: If you opt for a home loan, it is needed to begin the approval process during the given period to ensure there is no delay in making the payment to MHADA. Otherwise, you’ll have to pay a penalty of 1-2 percent on a monthly basis. 

• Submission of Documents: Once you get the provisional certificate, log in to the MHADA portal using your PAN as the user ID. You can authenticate by either creating a password for the account or generating a PAN-based OTP verification. 

After you’re logged in, go through the portal to complete the automated application process.

1. Submit the allotment and provisional letter on the portal. 

2. Choose the appropriate payment mode and you’ll be redirected to the e-challan form. 

3. Fill in all the details from your provisional letter. Submit the form and you’ll get an e-challan receipt.

The receipt helps you go through the payment process by providing multiple options. These include net banking, cash payment by showing the e-receipt and more.

• After making the initial payments, you need to make the payment for TDS. The process is the same, going through the MHADA portal and generating a receipt, finally proceeding with the payment. I recommend you consult a CA while handling the TDS part as it can be tricky.

• Once all the 3 payments are done, you’ll get the draft allotment letter, which acts as a confirmation of all the payments you’ve made.

• Gather two passport-size photos, an Aadhar card and if applicable, all the needed documents related to your home loan. You must also have the MITC (Most Important Terms and Conditions) document provided by the bank. With the documents handy, go to the MHADA office.

• Submit the document to the office. There are two easy to do so, which you can ask the officer there for the best clarity.

• After the documents are verified, the stamp duty amount will be shared. This amount is paid through the bank. Get the receipt generated from the MHAD head office, which will act as payment proof for stamp duty.

• Once the stamp duty is paid, collect all the documents, along with a separate agreement.  These must be taken to the registrar’s office.

• At the office, MHADA will provide the property agreement and the office will authenticate the registration of the property with a registration stamp. 

• Once you get the property agreement, go to the registrar’s office again. You must access your account by finding a link that’ll guide you through the method and direct you to the nearest registrar's office. Submit the agreement and all the other documents.

• You’ll require a lawyer for the data entry note. Once done, submit the agreement, PAN copy and Aadhar card copy with the Data Entry Note to get the Index 2 document from the registrar’s office.

• A verification process will take place. Once done, you’ll be provided with an index copy alongside the property agreement. 

• Go to the MHADA Head Office, and provide the agreement and index copy for the last verification. After it's completed, you’ll get a receipt important to get the property keys.

• Go to the property site, present the receipt to the officer and you’ll get the house keys.

This is how to buy MHADA flat.

The MHADA releases plans and conducts a lottery to allocate apartments. Every year, a housing programme is announced and those interested must submit their applications within the allotted time frame, along with an earnest money deposit. 

However, in order to apply for the programme, a candidate must have met the eligibility requirements. Additionally, buyers should be aware that there is a five-year lock-in period during which they cannot sell the apartment but can rent it out to generate rental income.

Here is the process you have to follow to buy a MHADA resale flat:

• Request the seller to obtain a no-dues certificate from the society.

• Obtain the owner's name on the original allotment letter from the MHADA. Additionally, request a copy of the letter in which the owner is requesting to transfer the certificate as well as the share certificate that the society may have given the owner.

• Both parties must split the transfer charge for a society membership equally.

• Check the electric meter's past balance, and request a copy of the transfer letter from the seller.

• The agreement to sale has to be made in the buyer's name. Pay the stamp duty and registration charges.

• You must notify MHADA of the issuance of the transfer certificate once the property is registered in your name. You must provide a copy of your registered documents and pay a transfer fee of Rs. 35,000. The entire procedure lasts roughly six months.

• Even if the property is registered in your name, you still need to transfer the power of attorney to your name.

I hope this helps:)