The Untold Journey of Your Future Home—From Empty Land to Society Formation

When I was buying a house, one thing I genuinely struggled with was understanding the full life cycle of a real estate project. Is an Occupancy Certificate necessary, or is a Completion Certificate enough? Is a Sale Deed the same as an Agreement to Sale? There were so many questions, but no clear answers. Here’s a simple explanation based on what I’ve learned.

1. Land Identification

Every project begins with land. There are lots of land scouts or consultants that often bring opportunities to builders. The plot location is usually described in the format “Survey No./Hissa No./ Plot. No.” For example, S NO. 25/1/A/1 Plot No. 1. You can locate all the survey nos and plot nos for an area in its respective DP plan. The area of the plot is usually described in sq mts and not sq feet.

DP Plan of Kharadi area in Pune

2. Redevelopment Projects

In case of redevelopment projects, the existing structure on the land is demolished and a new structure with more apartments is built on the same land. This is possible due to increase in FSI over time or TDR available with builder. In case of redevelopment projects, the landowner is the society and the existing members of society receive an upgrade with new flats. These are also referred to as rehab flats.

Sample redevelopment agreement

3. Title Report

Once the land is identified, a lawyer is commissioned to generate a title report. This legal document confirms that the seller actually owns the land and that there are no disputes, encumbrances, or legal issues tied to it. Lawyers usually go through 30 yrs of history of the land records to confirm. If no issues are found in the title report of the land, then the land is considered to have a clear title.

Sample title report

4. Joint Venture

Once the land is identified as clear title, builder either buys the land outright or enters into a JV agreement with landowners. In a JV, the builder and landowner share profits or built-up area. This reduces upfront capital for builders and is also tax efficient.

Sample JV agreement

5. Planning & Design

A licensed architect and structural engineer are hired to prepare layout and building plans based on the city’s Development Control Regulations (DCR). These rules cover things like - minimum distance from boundary walls, parking space requirements, building height restrictions, etc.

DCR for Pune region

Sample layout plan

6. Approvals From Authorities

Once the plans are created, they are submitted to the local planning authority (PMC or PMRDA in Pune) depending on the jurisdiction. Various NOCs are required from departments like Fire, Water, Tree & Garden, Tax, LAQ, etc.

PMC building permission help manual

7. Environmental Clearance (EC)

If the total built-up area of the project is over 20,000 sq.m., the project also requires EC from the State Environmental Impact Assessment Authority (SEIAA).

Sample EC certificate

8. Commencement Certificate (CC)

Once all approvals are in place, the authority issues a Commencement Certificate. This document states that construction can begin under specified terms.

Sample Commencement Certificate

9. MahaRERA Registration

Before advertising or taking any bookings, builders must also register the project on MahaRERA. This step is mandatory under RERA guidelines.

Sample RERA registration Certificate

10. Marketing & Booking

After registration is approved, builders can start marketing. If you like a project, you can pay a booking amount and receive an Allotment Letter. This should mention:

• Project specifications
• Total cost
• Expected completion date, etc

Under RERA regulation, it is mandatory for builders to execute an agreement to sale once 10% of the consideration cost is collected from the buyers.

Model allotment letter

11. Agreement to Sale

Once you are sure about the purchase, the next step is registering the agreement.

• You pay stamp duty and registration charges.
• 1% TDS must be deducted and deposited with the IT Department if the property value exceeds ₹50 lakh.
• GST (5% without input credit or 12% with input credit) applies to under-construction projects.

Model agreement to sale

12. Payment Schedule

After the registration is complete, you receive a demand letter from the builder at each stage of construction (e.g., plinth, slab, brickwork). Payments are linked to construction milestones.

13. Completion Certificate (CC)

When construction finishes, the project architect issues a Completion Certificate, confirming that work has been done as per the approved plan. This Completion Certificate is submitted to the local authorities to obtain occupancy certificate.

Sample Completion Letter

14. Occupancy Certificate (OC)

Once the Completion Certificate is submitted, the local authority inspects the site to ensure compliance before granting the Occupancy Certificate. In Maharashtra, it is also known as “भोगवटा पत्र” (Bhogwatta Patra). Only after receiving the Occupancy Certificate can the building be legally occupied.

Sample Occupancy Letter

15. Possession Letter

Once OC is granted, the builder invites buyers to take possession. Ensure all dues are cleared and a possession letter is issued. If you have availed a loan, you submit this possession letter to your bank and henceforth, your EMI will include principal as well as interest component. Before possession, it’s typically interest-only (Pre-EMI).

16. Society Formation

As per MahaRERA, the builder must initiate society formation once 50% of units are booked/sold. A Cooperative Housing Society (CHS) is formed, and share certificates are issued to its members.

Sample Society Registration Certificate

17. Conveyance Deed (Sale Deed of Land)

This final step transfers ownership of the land and common areas to the society. This gives the society legal ownership of the land and common areas.

Final Thoughts

Understanding these stages will help you be better prepared and ask the right questions during your home-buying journey. If this helped you, share it with someone who’s house-hunting!

This is a simplified summary based on my current understanding. I’ll continue updating it as I learn more.