Taking Possession of a Mumbai Flat: What RERA Says About Title, Common Areas and Defects

Five years. That is how long, from the day you are handed the keys, a promoter remains liable under the RERA Act for structural defects in a new Mumbai flat, according to the Ministry of Housing and Urban Affairs' FAQ on the Act. The clock starts on the date of handing over possession, which makes possession day more than a ceremony. It is the day several separate obligations start, finish or change hands: the occupancy certificate, transfer of title, the common areas, parking and, on paper at least, insurance.

This guide goes through what MoHUA's FAQ says on each, and what a Mumbai buyer can ask for before and after signing the possession letter. It does not assess any project or builder.

The short answer. MoHUA's FAQ says an occupancy certificate relates to a habitable building with water, sanitation and electricity, while a completion certificate covers the whole project. Section 17 provides for transfer of title of the flat to the buyer and of the undivided proportionate title in common areas to the association of allottees, along with the documents and plans. A garage, with a roof and walls on three sides, can be sold separately, but open parking cannot be a garage. Defect liability runs five years from possession, with 30 days to rectify. The trade-off: taking possession early starts that five-year clock and your own duties as an allottee, so check the paperwork before you accept the keys, not after.

What should a Mumbai buyer check before taking possession?

Start with the certificate that makes the flat legally habitable. The FAQ says Section 2(zf) defines the occupancy certificate and Section 2(q) the completion certificate. It explains that the occupancy certificate "relates to the occupation of the apartment/building, which has provision for civic infrastructure such as water, sanitation and electricity and is habitable." The completion certificate "relates to the completion of the entire project certifying that the project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority."

The difference matters in a large Mumbai project built in phases. Your tower may have an occupancy certificate while the wider project is still under construction. Ask for a copy of the occupancy certificate that covers your building and check that it names your wing or tower.

PropNewz has reported on what happens when possession is offered before an occupancy certificate. Our coverage of a MahaRERA order on soft possession without an OC explains that case.

What happens to title and documents under Section 17?

Two transfers take place. The FAQ says Section 17 "provides for detailed provisions regarding transfer of title of the apartment to the allottee and the undivided proportionate title in the common areas of project to the association of the allottees." It adds that "it shall be the responsibility of the promoter to handover the necessary documents and plans to the association of the allottees or the competent authority, as the case may be."

So the buyer's own title is only half of the picture. The other half is the association's title to the common areas and its possession of the building's documents and plans. Where the association takes the form of a housing society, the conveyance to it is the step that completes this. Our guide to conveyance and deemed conveyance for Mumbai housing societies covers what to do if that step stalls.

The FAQ also lists the buyer's side of this. It says Section 19 sets out allottee duties, including payment for the apartment, liability for interest on delayed payment, responsibility to take possession, participation in forming the association, and registration of the conveyance deed.

Which facilities count as common areas?

More than corridors and lifts. The FAQ says "Section 2(n) defines 'common areas' to include 'community and commercial facilities', thus they are an integral part of the project, to be handed over to the Association of Allottees."

For a Mumbai buyer in a project with a clubhouse, gym, pool or retail strip, that line is worth reading closely. Ask the promoter for a written list of the facilities it treats as common areas and compare it with the brochure and the agreement for sale. If something you were shown as a shared amenity is missing from that list, raise it in writing before possession.

Can a builder sell you a parking space?

Only a garage, as the Act defines it. The FAQ quotes Section 2(y): a "garage" means "a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas." It then says a garage "can be sold to the allottee independent of the 'apartment'."

The definition does the work here. A covered space with a roof and walls on three sides fits the definition; an unenclosed or uncovered space such as open parking does not. Before you pay a separate parking charge, ask the promoter to state in writing which of the two you are being allotted, and check that the agreement for sale describes it the same way. If the agreement calls an open space a garage, ask for that to be corrected before you sign.

How long is the builder liable for defects?

Five years from possession. The FAQ says that under Section 14(2), "the promoter shall be liable for 5 years from the date of handing over of possession to the allottee towards structural defect or any other defect as specified therein." It adds that "it is the duty of the promoter to rectify such defects within 30 days and if promoter fails to do so, the aggrieved allottees shall be entitled to receive appropriate compensation as provided under the Act."

Two practical points follow. First, the possession date is the start of the clock, so make sure it is recorded in writing in the possession letter. Second, a defect complaint is stronger with evidence. Photograph and date every crack, seepage patch or fitting problem, and send the promoter a written notice so the 30-day rectification period has a clear start.

Does RERA require the builder to insure the project?

The Act provides for it, but with a condition. The FAQ says that "as per section 16 the promoter is required to seek an insurance of the real estate project towards 'title of the land' and towards 'construction of the project'." It then adds that "the said section provides that this provision shall only come into effect after and in the manner as may be notified by the appropriate Government."

In other words, whether this duty applies depends on a government notification. This guide does not state whether Maharashtra has notified it. A buyer can simply ask the promoter in writing whether any title or construction insurance exists for the project, and if so, who holds the policy and what it covers.

What should be in your possession file?

Everything that starts a clock or proves a transfer. The checklist below follows the FAQ's points on possession, roughly in the order a buyer meets them.

1. Collect a copy of the occupancy certificate and check that it covers your building or wing.
2. Get a possession letter that states the date of handing over possession in writing.
3. Ask for the written list of facilities treated as common areas, and compare it with the brochure and agreement.
4. Confirm in writing whether your parking is a garage as defined in Section 2(y), and what the agreement says about it.
5. Ask the promoter for the expected timeline for conveyance to the association and the handover of documents and plans.
6. Start a dated defect log with photographs, and send written notice of any defect to the promoter.
7. Ask in writing whether any title or construction insurance exists for the project and who holds it.

Frequently asked questions

What is the difference between an occupancy certificate and a completion certificate?

MoHUA's RERA FAQ says an occupancy certificate relates to occupation of the apartment or building, with civic infrastructure such as water, sanitation and electricity, and that it is habitable. A completion certificate relates to the whole project being developed according to the sanctioned plan, layout plan and specifications.

Who owns the common areas in a RERA project?

MoHUA's FAQ says Section 17 provides for transfer of title of the apartment to the allottee and of the undivided proportionate title in the common areas to the association of allottees. It also says community and commercial facilities are part of common areas, to be handed over to the association.

How long is a builder liable for defects after possession?

MoHUA's FAQ says that under Section 14(2), the promoter is liable for five years from the date of handing over possession for structural defects or other specified defects. The promoter must rectify them within 30 days, failing which aggrieved allottees can receive appropriate compensation under the Act.

Must the builder insure the project under RERA?

MoHUA's FAQ says Section 16 requires the promoter to obtain insurance towards title of the land and construction of the project, but that this provision comes into effect only after, and in the manner, notified by the appropriate government. Ask the builder in writing whether any such policy exists.

This article explains MoHUA's general FAQ on the RERA Act for information only and is not legal advice. The FAQ notes that it is not a final interpretation of the Act. For a specific project, check Maharashtra's rules and your agreement, and consult a lawyer.

Last updated 2026-11-11. PropNewz Team.