CIDCO transfer for Navi Mumbai simplified

Here's a detailed overview of CIDCO Transfer Charges in Navi Mumbai, including their significance, the issues of corruption, and the necessary documentation for property transactions.

CIDCO Transfer Charges Overview
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Corruption Issues in CIDCO

Vigilance Department: Located on the 6th floor of CIDCO Bhavan in Belapur, it is alleged to be ineffective against corruption.

Appointment Difficulties: Unlike other municipal officials, securing an appointment with the Managing Director (MD) of CIDCO is notably challenging.

Bribery: While CIDCO officials may not engage in illegal activities for money, they often require payments for legal actions that should be straightforward.

 
Filing an RTI (Right to Information) request is suggested to uncover the truth, but the online RTI portal has reportedly collapsed to avoid transparency.

Transfer Charges Details

Annual Increase: Transfer charges typically increase by 10% each year.

Calculation Basis: Charges are based on the carpet area of the property and its location.

Processing Time: CIDCO claims a processing time of 20 days, but it often extends to 1-2 months due to inefficiencies.

Legal Context

Land Ownership: All land in Navi Mumbai is owned by CIDCO, which operates as a long-term landlord (60-year leases). Any transfer of property requires CIDCO's approval.

Consequences of Non-Payment: If the previous owner has not paid the transfer charges, the new buyer is responsible for settling these charges. Always verify the payment status before purchasing.

Required Documentation

Building Permissions: Completion Certificate (CC), Occupancy Certificate (OC), and Sanctioned Plans from CIDCO/NMMC.

Society Documents: Registration documents and CIDCO conveyance documents.

Approved Member List: CIDCO-approved list of society members.

Final Order from CIDCO: Confirming the society's status.

Mortgage NOC: Required if taking a loan.

NOC from Society: Allowing the bank to repossess and sell the flat.

Court Order: For foreclosure under the SARFAESI Act.

Auction NOC: From CIDCO for selling flats via auction.

Additional Clearances 

Mortgage NOC: If you are financing the purchase through a bank, you will need a Mortgage NOC from CIDCO to proceed with the loan disbursement.

GST on Transfer Charges
The government does not charge GST on registration and stamp duty for property purchases, leading to concerns about the legitimacy of CIDCO's GST application.

Legislative Background

CIDCO Transfer Charges are mandatory for all real estate transactions in Navi Mumbai, including:

Without the payment of these charges, no property transaction is legally valid or complete. It's essential to be aware of this to avoid misinformation.


There are significant concerns regarding corruption within CIDCO, which is perceived to be more severe than in other municipal authorities. Key points include:


Before purchasing property, ensure you have the following documents:

CIDCO has recently started levying GST of 18% on transfer charges, which raises questions since: Prior to 2014, there were no additional taxes on these charges.

Abrogating CIDCO Transfer Charges

CIDCO Transfer Charges are governed by the New Bombay Disposal of Lands Act and the New Bombay Disposal of Land Rules. Any changes to these laws would require legislative action in the Assembly.

Are CIDCO Transfer Charges Abolished?

• Revenue Generation: CIDCO earns hundreds of crores from these transfer charges, which are used for infrastructure development and staff salaries.

• Political Promises: Claims of abolishing these charges are often seen as false promises made by politicians who may not fully understand the economic implications.

No, CIDCO Transfer Charges have not been abolished. They are implemented under the New Bombay Disposal of Lands Act and the New Bombay Disposal of Land Rules. To change these laws, legislative action in the Assembly is required.

Here are some key points regarding the charges:

When Are These Charges Payable?

After Registration of the Sale Agreement: This applies to a Part Payment Agreement.
In Case of Full Payment: If the payment is made in one shot (without a bank loan), the charges are payable after the Sale Deed is executed.Eligibility for CIDCO Transfer Charges

Conveyance Requirement: The society must have a Conveyance in its favor and must be listed in CIDCO records.

Lack of Conveyance: More than 90% of societies do not have the necessary conveyance documented in CIDCO records, which can complicate transactions.

Conclusive Document for Society Conveyance
What is the conclusive document which shows Society Conveyance ?Its something called ‘Final Order’, shown below..

Are Transfer Charges Fixed?

No, They increase by 10% every year. So the longer you wait, the more expensive it gets for you

New Corruption Tactics by CIDCO Staff

Demanding Additional Documents:
Officials are requesting physical copies of applications and extra documents beyond what is officially required on the CIDCO website.

These may include:
Share Certificate copy
Society Members List
Copy of Final Order

These demands are illegal.

Absolving CIDCO of Responsibility:

Applicants are required to submit an Indemnity bond, which absolves CIDCO of any liability.
This raises questions about why CIDCO needs these guarantees if they are not taking responsibility.

Frivolous Excuses:

Officials may claim the society is not uploaded.
If your society has a Final Order, it is CIDCO's responsibility to update records.

Requesting Personal Visits:
Applicants are asked to collect the NOC letter in person, citing excuses like "the mail server is down" or "documents were not uploaded."
This tactic aims to identify agents and extract bribes.
Rejected applications result in document deletion, making it difficult to verify if the documents were uploaded.

Handling the Rejection:

If an application is rejected due to "documents not being uploaded," the only recourse is to submit a fresh application.
Visit the CIDCO office promptly the next day to verify the upload status in person.
Request the official to write on the NOC that it was handed over in person because the mail server was down, along with the date, time, and signature. This is unlikely to happen.Online Complaint Portal:
The online complaint submission portal is available for reporting issues. 

However, there is no guarantee of satisfactory resolutions.

Time Limits for Issuing NOCs
CIDCO NOC: 21 Days
Mortgage NOC: 7 Days

Societies Without Conveyance

Conveyance is Mandatory: Conveyance of land and building in the society's name is compulsory for CIDCO Transfer.
Conclusive Proof: The Final Order is the conclusive proof of society conveyance. Without this document, no CIDCO transfer is possible.

Here's a clear overview of the CIDCO Transfer Services we offer, including the pricing and details of the services provided:

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CIDCO Transfer Services Overview
Service Pricing

• CIDCO Transfer: ₹15,000 (all inclusive)
• Mortgage NOC: ₹15,000
• CIDCO Transfer + Mortgage NOC: ₹20,000
• Only Drafting/Documentation: ₹5,000
• Drafting and Registration of Sale Agreement/Sale Deed: ₹10,000
• Brokerage:
• Purchase/Sale transaction: 2%

• Rentals: 1 month rent/year

Consultation:

• Over Phone/WhatsApp/Zoom/Google Meet: ₹5,000 for 30 minutes

Payment Options

• Payments can be made online via Gpay, PhonePe, or UPI.

Documentation Process

• We only require a copy of the Sale Agreement to prepare the necessary documentation.

• You can send a scanned copy via email or send it through courier.

Delivery Timeline

• Documents will be prepared and sent to you via courier within 2 working days.

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If you have any further questions or need assistance with the CIDCO Transfer Process, feel free to ask! 😊
Call 9987452642

How builders cheat flat buyers in India

In our recent experience, particularly in Navi Mumbai, we have come across numerous instances of builders giving a false picture to flat buyers, in order to sell their flats. Some of these methods are listed below and could be classified as scams to rip off the gullible customer….

“There is only one flat available”

This is the most common statement made by builders to any inquiries about their projects. It is more prevalent in smaller buildings of 4 floors or less. These are typically small plots of 200 sq. meters in Navi Mumbai and are usually Tripartite (also called CIDCO transfer plots by some builders). This is done to project a false image of a booming market. In most cases the builder has not even sold a single flat, let alone all flats. He makes this statement expecting the buyer to hurry his purchase and to sell his unsold flats. And normally this ‘available’ flat is either the ground floor or the top floor or some other location with a really bad ventilation or view. This is the flat that will give him the maximum headache while selling, therefore he wants to sell it first. In big projects, its normally the 4 bhks which the builder wants to get rid of first. 2 and 3 bhks are relatively easier to sell.

Once he manages to sell 1/3 of the flats (in an under construction or finished project), he has funded his entire construction. He can sell the remaining flats at whatever price he wants or he can sit and wait for prices to rise. He won’t tell you this.

“All flats have been sold to investors,you will have to buy from them,there is no flat available directly”

This is nothing but another attempt to make you feel that the flats are in such a huge demand that there are none directly available from him. But dig a little further and ask him for a copy of the registered and stamp duty paid sale agreement of all those investors and you will be told that he doesn’t have anything like that because they have all paid in cash !! So basically he can catch a sweeper and make him appear like an investor cause cash payment has no record. Dont believe any such crap. This is just a trick to make you believe that he has sold all his flats. In most cases, he has not even sold a single flat.
Selling same flats (area-wise) at different prices to different buyers

In India, the real estate market is like the wild-west. There is no regulation as far as listing of prices (unlike any other product which is for sale and has the MRP clearly mentioned on it). Builder is free to price his flats at whatever rates he feels like. Builder is not even required to list the sale price of the flats he has sold on any website or govt portal. No such provision has been made in RERA (the much touted ‘regulation’ of real estate trade in India). Such details are hidden. Even though the builder may claims that he has sold all the flats and that ‘only a few flats are left’, he will never back up these claims via documents and sales agreements cause he does not want to show you at what price he has sold other flats. Opaqueness is the name of the game. Although there exists the Competition Commission of India (which is supposed to investigate such violations / illegal practices ), hardly any investigations take place and we all know why.

The Real Estate market is the cash cow for politicians. They invest heavily via proxy companies and shell companies. It is also heavily funded by policemen. They plough all their ill-gotten wealth into real estate. Their black money funds builders in a big way. They don’t want to let go of this money machine at any cost.Mayur – Sky Properties

One way to find out whether you have been ripped off is to file an RTI with the Registrar of Societies of the district where the project is located and source out all the documents filed for registration of the society. These documents have details of all the flats that were sold and the price which were sold at along with the date the flat was sold on. Don’t be surprised if you find you were ripped off a few extra lakhs than your next door neighbor. But this is much after the flats have been sold and the builder has formed the society. By then it may be too late to save your money. Photo below shows the list that the builder has to file with the registrar of Societies. Take a look..

Typical list of Flat Prices filed with the Registrar of societies

“For carpet area,subtract 33% from the Saleable area (super built up area)”

This is the biggest scam being practiced on gullible buyers. When a builder tells you to assume that loading is just 33%, you can safely assume that the actual loading is almost 50%. You will end up paying a few lakhs more just because of this scam. It is safe to assume that in buildings that have been constructed recently (upto 3-5 years ago), the carpet area is exactly half of the built up area or maybe even upto 40% of the super built-up area. This is the main reason why older buildings are actually cheaper when compared via Carpet Area, since their carpet area is much more.
The technical term for this scam is ‘Loading’.
Please read other sections of our website for detailed explanation of this scam.

PS : With the advent of RERA, this lie has been curbed to a certain extent as the RERA website has the carpet area mentioned. But one should double check this area with the actual area as sometimes the builders give wrong and misleading information to RERA and RERA authorities blindly upload the same on the website. Caveat Emptor.

“You will get the legal papers only after paying the cash component of the deal”

Honest builders should give you a copy of all legal documents like title certificate, Municipal sanctioned plans, sample sale agreement (on blank paper) etc which you should get verified by a lawyer. The lawyer will normally not charge you to look at these papers. Don’t make the mistake of blindly paying the builders in cash. You will never get it back and you will be trapped.

PS : With RERA, this lie has also been curbed to a certain extent, since these disclosures are found on the RERA site…but recently there was a massive scam where some fraudsters forged building permits of the municipal corporation and land documents and got their projects listed on the RERA website. The buyers blindly believed the RERA authorities and booked flats in those projects (more than 55 at the last count) and lost their money. Just another day in Mafia Nation. See full report here

Flat is Vastu Compliant

This is another lie which the gullible liar swallows without a question. The builder does not substantiate his claims in any manner. No Vastu Charts or Autocad Drawings with the Vastu zones clearly marked are shown in the brochures. Simply saying that Entrance is facing the north or kitchen is in XYZ direction is nowhere close to what real Vastu is all about. Real Vastu involves careful plotting of the flat or home in Autocad and then superimposing the detailed direction map on top of the Autocad design to see the actual positions of the rooms and directions. But no builder will tell you all this and they will not show any evidence that their flats are Vastu Compliant. What the builder says is North may not be the accurate north. And even if it is the North direction, the other directions will change depending on the shape of the flat (Square or Rectangular). Any so-called ‘Vastu Expert’ who does not even plot an accurate floorplan of your flat in Autocad is just fooling you.

If any builder claims Vastu Compliance, ask him to send you the DWG file (Autocad file) of the flat and then you can send it to your Vastu consultant for careful verification and analysis. This is the only way for accurate Vastu analysis.

Society formation charges, Parking charges, Development charges.

Basically, you can safely assume that these charges will be taken in cash and no receipt issued as all of these charges are illegal. Builder does not sacrifice any FSI for parking area and hence its free for him. Supreme court has banned sale of parking space. What the builder doesn’t tell you is that he is not only charging for the society formation but also taking money for the conveyance of land and building to the society after its formation. Development charges are also illegal. Society formation charges are a scam as the registration of the society barely costs 5000 rupees and its the builder’s responsibility and expense to form a society as soon as he sells 60% of the flats in his project. Conveyance of land and building to the society is also the builder’s responsibility and expense. He cannot make the end consumer pay for it. If he does, you can take him to the consumer court. Even if he does not form a society or give conveyance, he can be taken to the consumer court. The decision is quick and will always come in favor of the society/flat purchaser.

Remember : A builder is supposed to form a society at his expense as soon as 60% flats are sold…and is supposed to finish the conveyance to the society at his expense within 4 months of formation of the society.

THIS IS THE LAW !!

If the society needs conveyance in a hurry, it can obtain the conveyance at its own expense after sending notice to builder that they are proceeding with deemed conveyance but will take him to court after that and make him liable to reimburse them later, including the court and advocate charges.

Note : To file such a case and claim all the expenses, you must maintain proper receipts and accounts of the money you spend cause court will see all this before awarding compensation to society.
How to Proceed legally against Builders who do not form a society and give conveyance to it :-
Flat buyers (*registered societies) can collectively hire an advocate for Rs 25,000 to 30,000. These charges include drafting and filing the papers in the Consumer Court, attending the hearings, arguments, serving notices and getting the certified copy of the final order of the court and getting a decree from the court to execute its order.
These things must be made clear to the advocate in the beginning of the case in writing and his signature obtained on a piece of paper.
If you neglect this, you cannot pursue a truant advocate.
The Supreme court pays advocates it appoints as amicus curiae (friend of the court), Rs 6,000 at admission stage and Rs 10,000 at final hearing.
So do not think that these charges are ridiculously low. And if you think that these charges are unrealistic, you can click on this link to see the official rate list of advocates in Supreme Court.

Consumer court handles these types of cases day in and day out. Its an open and shut case for them. Its not some super complicated or difficult matter. Approach the consumer court with confidence. The order will come in your favor at a fraction of the cost that you would pay for conveyance and registration yourselves.

Profit Margins of builders (Minimum 150%-200% margin)

When a builder quotes a price to you (per sq foot), you must assume that his construction cost + land cost + interest cost is exactly half of what he is quoting you. This is the bare minimum. An easy way for you to figure out a reasonably accurate figure is to first figure out his land cost. In Navi Mumbai, CIDCO gives prime plots on Tender. And winning bid can be found out via RTI filed with CIDCO. Then you calculate the built up area of the entire structure. This information is available on the RERA site. In Mumbai (Maharashtra) the cost of construction for the best quality construction is Rs 4000 per sq ft (includes everything including fittings and finishing) . This includes everything.

 

If the builder compromises on this, he can cut down the construction cost to Rs 2000 per sq ft. Once you have his land cost and total built up area calculated, you can arrive at a fairly accurate figure of his cost of construction and land cost. Once you figure that out, its simple maths that will tell you how much it cost him to construct your flat. And in most cases you will see that its exactly half of what he is pricing his project at. 

Sometimes his margin is 200%. If you want you can even calculate the interest cost of his loan (if he has taken one)..cause construction of a Ground + 17 floor structure in Mumbai takes at least 1 year. 

A builder needs his own source of funds to complete upto 2-3 slabs of construction. After that he funds the rest via funds taken from buyers. If he is short of funds, he will sell a few flats to get some funds and continue construction.

If builder manages to sell 1/3 of the flats via booking during pre-construction or construction stage, he has funded his entire construction. He can relax and sell the rest of flats at any fat price he wishes. You can get max discount from the quoted price (upto 30% discount) during the initial construction phase or pre-construction phase. 

If he is really short of funds he may even give you a 40% discount … so that his construction can continue.

So basically, for a builder, the main task is to somehow sell 1/3 of his project, even at a discounted rate, to fund the rest of the construction.

This should give you a good starting point to bargain with builders. When any govt dept issues tenders for a certain job, they calculate how much it will cost to complete the job. Then they issue a base price. This base price is calculated at cost + profit margin formula. Whoever bids closest to this price wins the bid.

Negotiate from a position of knowledge and inside information.

PRICE CHART FOR OUR SERVICES

SERVICE CHARGES 

CIDCO Transfer only 15,000
Mortgage NOC only 15,000
CIDCO Transfer + Mortgage NOC 20,000
Only Drafting/Documentation 5,000
Drafting and Registration of Sale Agreement/Sale Deed 10,000
Brokerage (Purchase/Sale transaction) 2%
Brokerage (Rentals) 1 month rent/year
Consultation over Phone/Whatsapp/Zoom/Google Meet 4,000/30 mins
Property Tax Name Transfer 10,000
Water Bill Name Transfer 10,000

Call 9987452642

Foolproof way to purchase a flat in Navi Mumbai 2024

Essential Steps for a Smooth Property Purchase in Navi Mumbai: A Comprehensive Guide

1. Identify flat/property you like
2. Scrutinize property papers, title documents, municipal permits, flat ownership papers, society status, CIDCO NOCs etc
3. Make sure society conveyance has been done (without this, no CIDCO NOC will be possible and without CIDCO NOC no bank will give you a loan). This is not for fresh purchases in a New Project. In a new project, no society is formed until 60% of the flats are sold by the builder.
4. Fix Price
5. Formulate MOU (Memorandum of Understanding)
6. Make Token/Part payment if taking a loan. Take a receipt for the same
7. Formulate and register the Agreement for Sale (Sale Agreement) If taking a bank loan
8. Apply for CIDCO Transfer/CIDCO NOC
9. Obtain CIDCO NOC
10. Apply for Mortgage NOC (Only if taking a loan)
11. Obtain Mortgage NOC from CIDCO
12. Get bank to disburse the loan
13. Formulate and register Sale Deed
14. Apply to CIDCO for ‘Final Order’
15. Submit CIDCO ‘Final Order’ to Society for transfer of name in Share Certificate
16. Apply for change in name in Electricity and Gas department records
17. Apply for change in Property Tax Records (If applicable). Cost of Transfer is approx Rs 200 per square meter in Navi Mumbai. No Property Tax Transfer can take place without CIDCO Final Order.
18. Apply for change in Water Department (If applicable)
19. Transaction Complete

Correction of errors in Index 2 in Maharashtra

Remember: Index 2 is NOT THE BIBLE ON YOUR PROPERTY !!

Please note that a small error in the Index 2 does not invalidate or raise a question mark over the entire property or transaction. Even a mistake in the address or name of the parties does not affect the property status or the transaction in ANY MANNER !!
Incase there is a mismatch between the data in the Index 2 and the facts mentioned in the written agreement, the facts in the written agreement will take precedence.
A mere error in the Index 2 data does not in any way affect the status or validity of the transaction and such discrepencies are also accepted by the courts.
So just for a mere typographical error you don’t need any correction or rectification deed.
🙏🙏Mayur Panghaal (Legal Head Sky Properties)

It contains important details like registration number, the office where it was registered, the date, time, Ready reckoner value, Details about the property, its area, address, buyer details, seller details etc.

Many a times, mistakes are made in this document while entering the data before registration or during registration (while entering data). This can be due to the error/mistake by the person entering the data in the registration office.

The most common mistake is the date of execution and date of registration…
The execution date is the date on which the document is signed by all the parties to the sale agreement/Sale deed.
The date of Registration is the date on which the parties visit the registration office and register the document, get their photographs taken and thumb imprints taken.

Index 2 explained

Often, even the people at the registration office are unaware of what is to be done once such a mistake has been detected. Even advocates are sometimes unaware of what is to be done. 

Most think that a rectification deed (new document) will have to be made specifying the mistake made in the index 2 and get it registered (just like the previous document). 

For this the parties will have to visit the registration office once again.

All that has to be done is to file a simple application with the registration office (where the document was registered) specifying the mistake made while entering data in the Index 2.

The format of the same in given below.

Index-2-correction-application-blankDownload

The entire process takes 4-6 months as the document is routed first to the District registrars office and then to NIC in Pune for update of records.

NOTE : This is only for correction in the Index 2 and not the agreement copy scanned into govt records. The details written in the agreement should match with what is entered in the Index 2. No changes can be made in the registered agreement except via a Rectification Deed.

Property Tax and Water Bill name change process in Navi Mumbai

Nerul Ward Office NMMC

Here's a structured guide to help you understand the process of name change in property and water bills in Navi Mumbai.

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Changing the name on your property tax and water bills is crucial for finalizing any property purchase in Navi Mumbai.  This process is handled by the Municipal Corporation of Navi Mumbai and involves separate procedures for each bill.

I. Property Tax Name Change:

Procedure: Handled by the Navi Mumbai Municipal Corporation.

Cost (2025):Approximately Rs 210 per square meter (built-up area) for residential properties (flats).

Time: Approximately 1 month from the date of submission.

Forms: Given Below

II. Water Bill Name Change:

Procedure: This is done *after* the property tax name change is completed.

Cost (2025): Rs 800 for residential areas.

Time: Approximately 1 month from the date of submission.

Forms:  Given Below

III. Important Considerations:

Location: The specific department handling the procedure may vary depending on the property's location within Maharashtra.

Timelines: The processing times are estimates, and actual processing times may vary.

Steps:

Submission of documents and application form along with document processing charge of Rs 50
Approval of documents and issue of demand note
Payment of the Transfer Charge
Submission of receipt as proof of payment
Final Order issued

Contact us for all your Name Transfer and CIDCO Transfer requirements in Navi Mumbai

Sky Properties
Nerul, Navi Mumbai

9987452642
mayur@navimumbairealestate.org

Legal Heirship certificate procedure in Maharashtra for 2024

NOTE : NO CONSULTANCY CHARGES WILL BE CHARGED FOR HEIRSHIP CERTIFICATE INQUIRIES. WE CANNOT BRING BACK YOUR LOVED ONE’S, BUT WE CAN LESSEN THE BURDEN THAT THEIR DEMISE HAS BROUGHT.🙏

Heirship certificate is necessary when a property owner dies intestate (without making a will). It has to be obtained by immediate family members (father, mother, wife, sister, brother, children, grand children etc.). If some members of the family do not want any share of the property, they will be named as opponents in the Heirship Application.
JURISDICTION

In the context of Heirship certificate procedure in Maharashtra :
Purchase Price of PropertyJurisdictionBelow 5,00,000 (Five Lakhs) Civil Judge (Junior Division) (Lowest court)
Above 5,00,000 (Five Lakhs) Civil Judge ( Senior Division) (District/Sessions Court)
Heirship application jurisdiction

Heirship certificate from Tehsildar, talukdar, mamledar, amaldar, mandal adhikari is only for people who live in a Gram panchayat, Municipal Council or Tehsil.
Ordinary citizens who live in Metropolitan areas (Cities with a Municipal Corporation) should not file there.

WHERE TO FILE

When someone passes away, their Hiership Certificate can be filed at the appropriate court closest to where they lived at the time of death or where their property or part of their property is located. All properties, no matter where they are located can be included in one application. The local court will then send letters to other courts where other properties are located and obtain verification reports from them.

The application for heirship has to mention the properties and the districts and the district courts they fall under for properties out of the jurisdiction of the local courts.

NOTE : The practice of executing and registering a ‘Release Deed’ and ‘Gift Deed’ by heirs in favor of any person or heir is an inherently defective procedure. You can only ‘Release’ or ‘Gift’ something that is already yours., and the only thing that can settle that is an independent verification by the Courts via Heirship Deed or if there is a Will left by the deceased person which includes the name of the executor (the person who will carry out the wishes listed in the will, as named in the will by the deceased person), via a PROBATE by Courts. After a successful PROBATE by the Courts, a LETTER OF ADMINISTRATION is issued in the name of the EXECUTOR named in the will. If there is no EXECUTOR named in the Will of the deceased person, then the Courts will appoint an ADMINISTRATOR for the assets of the deceased to find out if any legatees, a will or hiers exist.
Public notices in Newspapers may be issued to invite claims.

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Remember : No right to any part of the property of a person who has died intestate can be established in any Court of Justice, unless letters of administration have first been granted by a Court of competent jurisdiction.
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Other Type of Letter of Administration : A letter of Administration can be directly granted to the legal heirs of a Hindu, Muslim, Budhist, Sikh, Jain if the decesed died without making a will. But such a letter of Administration can only be granted to a person who is entitled to the property anyways (lineal descendants/legatees i.e. sons, daughters, grandsons, granddaughters etc , tier 1, tier 2 hiers etc) as per inheritance laws.

COST
In Maharashtra, if the purchase price of the property to be claimed was less than 5,00,000 (Five Lakh), then the Court Fee is calculated as per the following formula :Purchase Price of FlatCourt FeeMinimum Amount 01 to 50,000 2% 1000
50,000 to 2,00,000 4% 6000
2,00,000 to 3,00,000 6% 6000
3,00,000 to 5,00,000 7.5%
5,00,000 and above 75,000 75,000
Court Fee Chart for Heirship Certificate
For properties costing more than Rs 5,00,000 (Five lakh) at the time of purchase by the deceased, there is a flat fee of Rs 75,000 (Max) no matter how many properties and where they are located.

NOTE : Incase the property is under joint ownership and only one owner has expired, then the purchase price of the property will be taken at 50% of the total purchase price and the jurisdiction and court fee will change accordingly.

Sometimes the Judge allows depreciation and you can get away with paying Rs 58,000 instead of Rs 75,000. But that’s a hit or a miss.

COURT FEE PAYMENT SCHEDULE

Court fee (stamp) at time of submission : Rs 50

Court fee (stamp) on Vakalatnama : Rs 10
*Full Court fee is only payable once your application is approved by the judge...which is much later after your application is submitted and all the checking is over . It is the final step. After the payment of Court fee, your Hiership Certificate is issued.

COVERAGE

You can include all properties, wherever they may be located, in one single Heirship Application to the court. The court fee is capped at Rs 75,000…no matter how many properties you include and what the total price of the properties was.

The Documents for submitting application for Heirship are as below :-

1. Adhaar Card and Pan card of all parties (including the deceased person)
2. Death Certificate of the deceased person
3. Society Share Certificate
4. Electric bill
5. Copy of Sale Agreement (attested as true copy by Notary)
6. Valuation report (Obtained from a Chartered accountant or govt registered valuation agent or Sub Registrar office)
7. Ration Card

APPLICATION SUBMISSION

The Application is typed and submitted in court as a Miscellaneous Application (Civil) category. It is now compulsory to file all applications online via efiling (version 3.0) website .

You must first register yourself and wait for approval. Then you can file the application.

You must register on this website first

Efiling website

COURT PROCEDURE : STEPS

1. Submitting the application as a miscellaneous application (called petition in court language) along with Court Fee Stamp of Rs 50 (pasted on the back of the front page of the application) (If you are hiring an advocate, you have to paste another Rs 10 court fee stamp on the vakalatnama-appointment letter for advocate)
2. Affidavits of all parties stating that they are the legal heirs of the deceased person. A sworn document (Notarized by a Notary) that verifies facts concerning a specific issue. In this situation, it identifies the heirs of the decedent and other relevant information as required by law. Any Notary in your area should be able to help you with this.
3. List of Documents being submitted with the application (Aadhaar, pan, society Share certificate etc.)
4. Memo of address
5. Jahir Notice (Newspaper notice in 2 local newspapers inviting any objections from anyone within 30 days)
6. If no objection received after publishing of newspaper notice, a demand letter for payment of Court Fee (as per valuation)
7. No claim affidavit : This is given by the opponent heir that he does not want any share in the property. This is done at the final stage. Just before the Hiership Certificate is issued by the court.
8. Payment of Court Fee
9. Jahirnama (Heirship order issued by court)

Heirship notice issued in newspaper to invite objections if any

What happens if objections are received after Newspaper notice is published by courts ?

In this case the court issued a notice to all parties (8 days) and calls for all evidences and parties to present their case before deciding on the matter. The court can either issue the Heirship certificate or refuse to issue it . If the matter seems too complicated, it will suspend the proceedings of issuing the Heirship certificate until the matter is settled as part of a civil suit filed in an appropriate court.

The court will send bailiffs to inquire with people in your community and neighbors to gather information about your background. They will then submit a report to the judge. If you have properties in other districts or cities, the court will also request a report from the local court or magistrate. Once these reports are clear, your application for heirship will be approved.

Once all necessary tasks have been completed, it will be incumbent upon you to fulfill the court fee in the prescribed manner as stipulated by the court. Following this, the Judge shall provide you with the Heirship order that is rightfully yours.

Copy of Heirship certificate issued by Court in Mumbai

TIME TAKEN

The Entire Procedure should take 4-5 months, if the person/advocate is following up regularly.

POWERS/RIGHTS OBTAINED VIA HEIRSHIP CERTIFICATE

First—An heir, executor or administrator, holding the proper certificate,
may do all acts and grant all deeds competent to a legal heir, executor or administrator, and may sue and obtain judgment in any Court in that capacity.

Second.—But, as the certificate confers no right to the property, but only indicates the person who, for the time being, is in the legal management thereof, the
granting of such certificate shall not finally determine nor injure the rights of any
person ; and the certificate shall be annulled by the Sessions/District Court, upon proof that another person has a preferable right.

Third.—An heir, executor or administrator, holding a certificate, shall be accountable for his acts done in that capacity to all persons having an interest in the property, in the same manner as if no certificate had been granted. And that is the reason why the Heirship Certificate holders are supposed to give an inventory of any property they have sold to the court every year. This is done so that the court has an accurate record incase someone files a counterclaim later that you deprived him or cheated him from his share as he/she is also an heir.

DOES IT MAKE YOU AN ‘OWNER’ OF THE PROPERTIES?

An heirship certificate DOES NOT make you the “owner” of a property. It just gives someone the confidence to deal with you in matters related to a deceased person’s affairs. It’s like an assurance for that person, so they won’t be held responsible if anything goes wrong.

However, it’s important to note that holding an heirship certificate doesn’t protect you from being sued by other claimants or having the certificate cancelled by a court. If it’s discovered that you were involved in fraud, any money you received for the property may have to be shared or refunded to the rightful heirs. If you don’t comply, the government may sell your property to fulfill the rightful heirs’ claims. To pursue this, the claimant would need to file a case in court.

DIFFERENCE BETWEEN HIERSHIP CERTIFICATE, SUCCESSION CERTIFICATE AND LETTER OF ADMINISTRATION

An HEIRSHIP CERTIFICATE is a legal document granted by the appropriate court to the heirs of a person who has passed away without leaving a will. It is specifically applicable to non-movable assets such as flats, properties, and land owned by the deceased individual. The purpose of this certificate is to establish and validate the rights of the heirs over these immovable properties. The heirship certificate serves as proof of their entitlement and allows them to assert their ownership and make necessary transactions related to those assets.

On the other hand, a SUCCESSION CERTIFICATE is another legal document issued by the court that grants the heirs of a deceased person the authority to inherit and manage their movable assets. Movable assets encompass a wide range of properties and valuables, including bank accounts, shares, money, gold, jewelry, cars, bikes, and other personal belongings. The succession certificate acts as a testament to the legal status of the heirs and authorizes them to access, transfer, or dispose of the movable assets left behind by the deceased individual. It provides the necessary legal framework to ensure a smooth distribution of these assets among the rightful heirs.

In contrast, a LETTER OF ADMINISTRATION is a document granted by the court to an individual named in a will as the executor or administrator (Someone whom the dead person authorized to carry out and fulfill all that is written in the will).
It can also be granted to another person when no executor is named in the will or the person named as executor in the will is unwilling or not in a position or dead.
This person, named in the Letter of Administration as the Administrator, is entrusted with the responsibility of carrying out the instructions stipulated in the will regarding the distribution of assets.

Unlike the heirship certificate and succession certificate, the letter of administration is applicable when the deceased individual has left a will behind. The named executor or administrator is legally bound to oversee the proper execution of the deceased person’s wishes as detailed in their will. The letter of administration empowers the executor to manage the estate, handle any financial matters, settle outstanding debts, and distribute the assets to the designated beneficiaries as outlined in the will. It is important to note that the named executor or administrator does not become the owner of the assets mentioned in the will but rather serves as a fiduciary in fulfilling the wishes of the deceased.

Other Type of Letter of Administration : 

A letter of Administration can be directly granted (without probating a will) to the legal heirs of a Hindu, Muslim, Budhist, Sikh, Jain if the decesed died without making a will (Intestate) . But such a letter of Administration can only be granted to a person who is entitled to the property anyways (lineal descendant ie sons, daughters, grandsons, granddaughters etc , tier 1, tier 2 hiers etc) as per inheritance laws.

These legal documents play a crucial role in the posthumous transfer of assets and help streamline the inheritance process. They provide a clear framework for the distribution and management of both movable and immovable assets in accordance with the law. The issuance of these certificates and the letter of administration helps ensure the rightful transfer of assets to the appropriate beneficiaries, provide legal protection, and prevent potential disputes among the heirs.

SUMMARY

In short : Heirship certificate is like GST number. You don’t need it unless your business turnover per year crosses 40 lakhs … but nobody will deal with you unless you have it.

This is the entire gist of the matter 🙃

FOR MUSLIMS (Sunni’s)

In Muslim law, inheritance is determined by Sharia. The shares in the property are divided based on factors such as the number of children, their gender, and the relationship to the deceased. Generally, males receive twice the share of females. A Muslim person can only will up to one-third of their property while they are alive. After their death, Sharia law determines the distribution of the remaining property among the heirs.

Shias have a slightly different ratio for inheritance.

CONTACT US FOR ALL YOUR HEIRSHIP CERTIFICATE REQUIREMENTS IN MUMBAI & NAVI MUMBAI.

Contact Address

Sky Properties,
A-1, 7/2, Sneh Co Op Society,
Plot No 16, Sector 19a, Nerul,
Navi Mumbai,
Maharashtra 400706

mayur@navimumbairealestate.org
Mobile 9987452642

Services provided by us :-

• Buying and Selling of property in Navi Mumbai
• Registration
• Sale Agreement
• Sale Deed
• Stamp Duty Payment
• CIDCO Transfer
• Heirship Certificate from Court
• Agricultural land purchase/sale verification
• Society Formation
• Society Conveyance
• Tripartite Agreement (For Plots)
• Consultancy
• Due Diligence

How To Buy Repossessed/Foreclosed Flat through Bank Auction in Navi Mumbai

Overview

One often hears of great bargains offered by banks in repossessed/foreclosed properties. Although the offers are tempting, since they are offered at a 30-40% discount from market rates, one has to be careful while buying such properties/flats as many, if not all, have glaring shortcomings in their legal status. Many lack the proper building permissions and others lack permissions which are specific to Navi Mumbai.

CIDCO Role

Navi Mumbai was formed by acquiring land in the 1970’s by CIDCO, which was designated as the planning authority for Navi Mumbai. Villagers were compensated as per the land acquisition act and given adequate compensation along with land which they could sell in the open market to builders or build on it themselves. The scheme for such construction was called Sade Barah Takka (12.5%) GES (Gaothan Expansion Scheme).

Since CIDCO is the planning authority, it framed rules under Navi Mumbai Disposal of Lands Act and Navi Mumbai DIsposal of Land Rules. These rules also incorporated conditions for sale of flats/Shops/Land which defaulted on mortgage/loans taken from banks.

Documents Required

One should make sure that the following documents are in place before purchasing the Flat/Shop/Land:-Building permissions from CIDCO/NMMC (CC, OC, Sanctioned Plans)
Society Formation/Registration Documents
CIDCO Conveyance Documents of the Society
CIDCO approved List of Members of the Society (This list is approved by CIDCO on its letterhead before the Conveyance application of Society is Processed by CIDCO.
CIDCO Final Order in Favor of the Society
Mortgage NOC obtained by defaulting owner from CIDCO
NOC from society allowing the bank to repossess and sell the flat
District Magistrate Court (Collector) Order for foreclosing the loan and repossessing the flat/shop issued under SARFAESI ACT and Rules
NOC from CIDCO for selling the flats via Auction (To be obtained by the Bank from CIDCO)
Once these documents are available, one can bid in the online auction of the bank.

Banks do not have adequate legal documents

Our experience shows that most banks do not display any of these documents online and they do not maintain any of the documents at the site of the flat/building.
They lure buyers to their office on the pretext of showing documents. They will not allow you to take copies of the documents and will tell you to find out CIDCO approvals on your own.

This only means one thing : That the documents are not complete. Almost 100% of the banks do not have the CIDCO NOC for selling the flat. They lure buyers with false and fake promises and ‘as is-where is’ condition. And most of the people who do not have any knowledge of the process, end up buying a problem property and repent later.

After winning the bid/Auction

On winning the bid, the bank issues a certificate of sale (a letter on the letterhead of the bank stating that you have won the bid and paid the money)

Once the certificate of sale is issued, it is then registered along with a sale agreement at the Registration office of the Revenue Department. Stamp Duty on the Auction Price or the Ready Reckoner Rate (whichever in higher) has to be paid. Registration charges also have to be paid.

After that the winning bidder has to approach CIDCO with a full set of documents and affidavits and NOCs and obtain the CIDCO NOC for the sale. If the payment is without a loan or in one shot, then CIDCO will issue a Final order directly, or else one will have to obtain a CIDCO NOC for availing a bank loan after part payment, and then apply for a Final order after making the balance payment via Loan Disbursal. 

Final order will have to be obtained from CIDCO after execution and registration of the Sale Deed.

Illegal terms and conditions imposed by banks/As-is-where-is pre-condition

In a new development, PNB bank sold a property worth crores via Bank Auction by making the buyer sign a ‘as-is-where-is’ clause. The High Court has ruled that all such clauses are illegal…and if there is any legal title issue pre-existing, the bank cannot shrug its responsibility on the basis of ‘as-is-where-is’ clause. PNB had to refund the entire amount.
Remember : The buyer will have to pay twice the regular CIDCO Transfer Charges to CIDCO to obtain clear title to the property/flat/shop.

Copies of all documents are given below

CIDCO Final Order

We are sure this article saved you lakhs or probably crores of money as this information is not available anywhere.