The Mumbai luxury property process has more steps, more costs, and more paperwork than most buyers expect the first time around. I've seen people lose booking amounts because they didn't check RERA first. I've seen buyers get hit with a ₹50 lakh surprise at the stamp duty stage because nobody told them about GST on under-construction properties. This guide is the briefing I give every serious buyer before they start looking - so none of that happens to you.
Step-by-Step Buying Process
Check MahaRERA Before You Do Anything Else
Go to maharera.mahaonline.gov.in and look up every project before you visit it, before you call the sales team, before you even look at the brochure. The registration shows the legal possession date the developer is bound to, the approved carpet area of every unit, and any complaints filed. If a project isn't registered, or if the registration has expired, walk away - no matter how good the pitch sounds.
Site Visit & Unit Selection
Visit in person, always. Ask the sales team for the RERA carpet area of the specific unit you're considering - not the super built-up figure, not the saleable area. If they can't give you a straight answer, that tells you something. Check the floor height, the view corridor, natural light. Get the floor plan in writing before you pay anything.
Negotiate & Book - But Get Everything in Writing
Most buyers don't negotiate. They should. In boutique Bandra West projects, there is usually some room on parking charges, club membership fees, and occasionally on the base price for early bookings. Once you've agreed terms, pay the booking amount (typically 2-10% of agreement value) and get an allotment letter in return - in writing, with the unit number, floor, carpet area, and the locked price. Don't pay without this letter.
Legal Due Diligence - Don't Skip This
Hire a property lawyer independently - not the one the developer recommends. Have them verify title documents, development agreement, IOD/CC approvals, and any encumbrances on the land. On a ₹5-15 crore purchase, spending ₹30,000-₹75,000 on proper legal review is the best money you'll spend. This is not optional.
Home Loan Sanction
Apply to at least 2-3 banks simultaneously - SBI, HDFC, ICICI, Kotak. Don't take the first offer. The spread between best and worst rates on a ₹5-7 crore loan can be 0.3-0.5%, which is a significant difference over 15-20 years. Keep your last 3 years' ITR, Form 16, recent salary slips, and 6 months of bank statements ready before you apply. Sanction typically takes 7-21 days.
Agreement for Sale & Stamp Duty
The Agreement for Sale is your main legal document and this is where the large government costs land. Stamp duty is 5% of the agreement value plus 1% registration, paid upfront and in cash - banks don't fund this. Read the AFS before signing. The clauses that matter most: the possession date, what penalty the developer pays if they're late, and what recourse you have if plans change. Don't let the developer rush you through this step.
Construction-Linked Payments
For under-construction properties, you pay in tranches tied to construction milestones - foundation, slab completion, plastering, OC receipt. Pay only when the milestone is actually reached. RERA explicitly prohibits developers from demanding advance payments ahead of construction progress. If a developer asks for more than the agreed CLP tranche, push back.
Snagging, Possession & Final Registration
Do not accept possession without a written snagging inspection. Go through every room, every fitting, every electrical point, every tile. Write down every defect - even minor ones. The developer has a RERA-mandated 5-year defect liability period for structural issues, but you need those defects documented before you take the keys. Once you're satisfied, complete the final registration at the Sub-Registrar's office and take possession.
True Cost of Buying - What It Actually Comes to
The number that surprises buyers most isn't the flat price - it's everything on top of it. On a ₹10 crore flat, your all-in cost looks something like this:
| Cost Component | Rate | Amount (on ₹10 Cr flat) |
|---|---|---|
| Agreement Value | - | ₹10,00,00,000 |
| Stamp Duty | 5% | ₹50,00,000 |
| Registration Charges | 1% | ₹10,00,000 |
| GST (under-construction only) | 5% | ₹50,00,000 |
| Car Parking | Fixed | ₹15–50,00,000 |
| Legal & Due Diligence | Fixed | ₹50,000 – ₹1,00,000 |
| Home Loan Processing Fee | 0.25–0.5% | ₹2–5,00,000 (on loan amount) |
| Interior & Fit-Out | Variable | ₹50 – ₹200+ per sq ft carpet |
| Total All-In (under-construction) | ~₹11.3–12.2 Cr+ |
The GST trap most buyers miss: GST at 5% applies to under-construction flats only. If the Occupancy Certificate has been received, there is zero GST. On a ₹10 crore flat, that's ₹50 lakhs saved by choosing a ready-possession project over an under-construction one. Always ask for the OC status before you finalise anything.
Carpet Area vs Super Built-Up - The Number That Actually Matters
This is the concept that confuses the most buyers and where the most value gets lost in comparison shopping. Under RERA, developers must quote prices on carpet area - the actual usable space inside your flat, measured from inner wall to inner wall. Walls themselves, balconies (counted at 50%), and all common areas are excluded.
Super built-up area (also called saleable area) adds a proportionate share of common areas - lobbies, lifts, staircases, club facilities - on top of your carpet area. In Mumbai luxury buildings, that loading factor is typically 25-45%.
Here's what it means in practice: a developer quoting ₹30,000 per sq ft on 2,000 sq ft super built-up is asking for exactly the same money as another quoting ₹45,000 per sq ft on 1,350 sq ft carpet. You cannot compare prices across projects without converting everything to the same basis. Always use carpet area.
What RERA Actually Protects You From
MahaRERA changed the buyer's position in Mumbai dramatically since 2017. If you're buying a registered project, these protections apply to you:
- Escrow protection: 70% of your payments must sit in a separate escrow account and can only be used for that project's construction. This stops developers from diverting your money to other projects - which was a serious problem before RERA.
- Possession date is a legal commitment: If the developer misses the RERA-registered possession date, they owe you 10.75% annualised interest on every payment you've made for the entire delay period. This is enforceable.
- 5-year defect liability: Any structural defect reported within 5 years of possession must be fixed at the developer's cost. Document everything at possession.
- No plan changes without consent: A developer cannot materially alter the approved plans affecting your unit without your written agreement.
10 minutes that could save you crores: Before paying anything at all, search the project on maharera.mahaonline.gov.in. Check that the registration is valid and current, the possession date is clearly stated, and there are no adverse orders filed against this developer across any of their projects. This simple check has protected many buyers from serious problems.
Home Loan Reality Check for Luxury Properties
Banks lend up to 75-80% of the agreement value on luxury properties, but many cap the absolute loan amount at ₹5-7.5 crore regardless of how expensive the property is. A few practical points that catch buyers off-guard:
- Shop across at least 3 banks - SBI, HDFC, ICICI, Kotak all price differently. A 0.4% difference in rate on a ₹6 crore loan is real money over 15 years.
- Stamp duty, registration charges, and GST are not part of the home loan. That's typically ₹60-₹1.1 lakh of government costs on a ₹10 crore purchase that you need to have in cash.
- On under-construction properties, you'll pay pre-EMI (interest only on disbursed amounts) during construction, then switch to full EMI. That pre-EMI period can run 2-3 years. Model it properly before you commit to the loan size.