Taking possession of a new home is an important stage in the property-buying process. Along with checking the apartment, buyers should also review the project’s approvals, applicable dues, utility arrangements, and handover documents.
Builder dues can relate to several areas, including land-related charges, municipal taxes, water and electricity charges, maintenance, development charges, and other liabilities connected with the project. Under the Real Estate (Regulation and Development) Act, 2016 (RERA), promoters have responsibilities relating to project approvals, occupancy or completion certificates, essential services, outgoings, and the handover of project documents.
A systematic builder dues verification before possession helps buyers understand which payments have been completed, which documents are available, and what is being handed over with the property.
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Why Check Builder Dues Before Taking Possession?
A residential project involves more than the individual apartment. It also includes common areas, utilities, land-related obligations, and infrastructure connected with the development.
RERA Section 11 states that the promoter is responsible for obtaining the completion certificate or occupancy certificate, as applicable, and making it available to allottees or the association of allottees. The section also addresses project outgoings and the promoter’s responsibility for amounts collected from allottees for project-related expenses.
This makes the possession stage an appropriate time to review the project’s documentation and financial clearances.
1. Check the Occupancy Certificate Before Possession
The Occupancy Certificate (OC) is one of the key documents to check before occupying a completed property.
Under RERA, the promoter is responsible for obtaining the completion certificate or occupancy certificate, or both where applicable, from the relevant competent authority according to local laws.
Buyers should check:
- Whether an OC has been issued
- Which building, wing or portion it covers
- The issuing authority
- The date of issue
- Whether the document corresponds with the property being handed over
Some projects may receive a part or phase-specific occupancy certificate depending on the applicable local regulations. Therefore, buyers should verify the scope of the certificate rather than relying only on its title.
2. Ask for a Builder No-Dues Statement
A builder no-dues certificate or applicable clearance statement can help document the financial position of the project at the time of handover.
Depending on the project and local requirements, buyers can ask for information relating to:
- Municipal and property-related payments
- Development charges
- Water and drainage charges
- Electricity-related payments
- Maintenance collections
- Other statutory or project-related outgoings
The exact documents required can vary by state, local authority and project structure. Buyers should therefore match the documents with the requirements applicable to their property.
3. Verify Municipal and Property Tax Payments
Municipal taxes and other local authority charges are important parts of property-related records. The relevant municipal corporation or local authority may provide online property-tax records or payment information. Buyers can compare the property or assessment details mentioned in the documents with the official records available for the project.
Check:
- Property or assessment number
- Name of the property/project
- Applicable assessment period
- Payment receipts
- Current payment status
This creates a clear record of the property’s municipal payment position at the possession stage.
4. Check Water and Electricity Dues
Large residential developments can have common or bulk utility arrangements during construction and handover. Before possession, buyers can ask the promoter for applicable utility clearance documents and details of the transition from project-level services to individual connections, wherever relevant.
For electricity, the appropriate distribution company can be checked for information applicable to the project’s connection. Water and drainage records can similarly be verified with the relevant local authority or utility provider.
The exact process differs between locations, so the local utility provider’s requirements should be followed.
5. Check the Project’s RERA Details
For a RERA-registered project, the relevant state RERA website provides an important source of project information. For example, MahaRERA provides project registration and project-update facilities through its official portal. Its project information system includes documents and updates submitted by promoters.
Buyers can compare available project information with the documents provided during possession.
Look for:
- RERA registration details
- Promoter information
- Approved project details
- Project completion information
- Updates submitted by the promoter
- Orders or complaints available through the authority’s records, where applicable
RERA information works alongside records maintained by municipal, planning, land and utility authorities.
6. Review Land Records and Encumbrances
Property buyers should also review the land records applicable to the project. An Encumbrance Certificate (EC) or equivalent land-record search can provide information about registered transactions and encumbrances recorded against the property for the relevant period.
The appropriate document, search period and authority depend on the state and property.
For this reason, buyers should verify land records through the relevant Sub-Registrar or official land-record system and consider professional legal review where the property structure is complex.
7. Compare the Final Demand With the Agreement for Sale
Before making the final payment, compare the builder’s demand statement with the Agreement for Sale. Pay attention to the description and calculation of:
- Balance sale consideration
- Applicable taxes
- Maintenance charges
- Corpus or sinking fund, where applicable
- Utility deposits
- Registration-related amounts
- Other charges specifically provided for under the agreement
RERA requires promoters to provide information and documents relating to the project and its sanctioned plans, while Section 17 deals with transfer of title, physical possession and handover of necessary documents and plans.
This makes the Agreement for Sale an important reference document during the possession process.
8. Collect the Handover Documents
Possession is also the stage at which buyers should maintain a proper record of the documents received from the promoter. Depending on the project and applicable local laws, the handover may include:
- Occupancy or completion certificate
- Approved plans
- Relevant NOCs and approvals
- Possession letter
- Payment statement
- Maintenance information
- Utility-related documents
- Warranty documents for applicable equipment
- Documents relating to common areas
RERA Section 17 provides for the promoter to hand over necessary documents and plans, including those relating to common areas, to the association of allottees or competent authority as applicable under local laws.
Builder Dues Verification Checklist Before Possession
Before taking possession, buyers can keep the following checklist ready:
- Check the applicable occupancy or completion certificate.
- Obtain the builder’s applicable no-dues or clearance statement.
- Verify municipal and property-related payments.
- Review water, drainage and electricity-related clearances.
- Check the project’s RERA information.
- Review applicable land records and encumbrances.
- Compare the final demand with the Agreement for Sale.
- Collect relevant approvals and handover documents.
- Keep copies of receipts, certificates and correspondence.
- Review project-level documents with other allottees where common areas and facilities are being handed over.
What to Verify Before Taking Property Possession
Checking builder dues is one part of a broader pre-possession property verification process. The buyer should consider the apartment, approvals, project records, payments, utilities, and handover documents together.
RERA establishes promoter responsibilities, while state rules and local authorities determine many of the specific procedures and documents applicable to a project. The official RERA authority, municipal body, planning authority, utility provider and land-record authority are therefore important sources for verification.
For property buyers exploring residential projects, Openplot provides a property listing platform where you can discover available properties and begin your property research.
A well-organised possession file gives you a clear record of the property’s approvals, payments and documents at the time of handover. That record can also make future interactions with the builder, association, utility providers and authorities much easier.
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