Buying or Selling a MHADA Flat in Mumbai: Lock-In, NOC and the PoA Trap
MHADA lottery flats generally can't be sold for five years from possession, and sales need a MHADA NOC. Steps for sellers and buyers, and why PoA deals are risky.
With the MHADA lottery results out, many winners are asking when they can sell, and buyers are being offered lottery flats "on PoA". Here's how it works.
The lock-in
- A MHADA lottery flat is reported to have a lock-in of five years from the date of possession, not from the lottery draw.
- During the lock-in, the original allottee can't sell, transfer or rent out the flat without approval.
- Terms have changed over time, so confirm the period for a specific flat with the relevant MHADA board.
Selling after the lock-in
- Apply to the MHADA board for a No Objection Certificate for sale.
- Submit the allotment letter, possession letter and proof that five years are complete.
- Clear society and MHADA dues.
- Register the sale deed, after which the buyer pays MHADA's transfer fee, reported at around Rs 35,000 and subject to revision.
Transfers can take several months, so plan home loan disbursement around it.
No registered sale deed and no MHADA NOC means no purchase. A PoA is not a sale.
The PoA trap
Some sellers offer a power of attorney during the lock-in instead of a sale deed. That's not a valid transfer of ownership. Reports say such documents won't be registered and MHADA can cancel the allotment if it finds the arrangement. The buyer ends up with no title.
Buyer's checklist
- Confirm the lock-in has ended with the MHADA board.
- See the MHADA NOC before paying.
- Collect the allotment and possession letters, share certificate, no-dues certificate and payment receipts.
- Insist on a registered sale deed.
- If you plan to rent it out, check whether MHADA approval applies.
Related reading
Selling or buying a MHADA flat? Book a video call.
Sources
General information, not legal advice. Confirm terms with the MHADA board for your flat.
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