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| SRA Flats in Mumbai |
All you Need to Know Before Buying Flat in the SRA (Slum Rehabilitation Authority) Projects
Every common man living in Mumbai wants to buy his shelter for the family. But buying a house in Mumbai has become more like a mere dream for the city dwellers. As we all know that Mumbai is a city full of outsiders rather than native Mumbaikars, which turned Mumbai into one of the largest slum cities in the world. Later on, Maharashtra's government decided to form a Slum Rehabilitation Authority (SRA) to enhance the standard of living of slum dwellers in the city.
People living in Mumbai want to buy a house even it is smaller or bigger. Nowadays, most of the population is shifting to nearby suburb cities like Vasai-Virar, Nalasopara, Kalyan, Dombivali, Ambarnath, Badlapur, Navi Mumbai, and Panvel, etc. in search of economic houses Or they are looking for SRA flats for sale in Mumbai.
Still, some part of the population wants to buy a house in the middle of the city. They are ready to buy flats in SRA Schemes even after knowing the risk factors attached to them.
What Is an SRA Flats? (Slum Rehabilitation Authority)
According to a private report, 60 percent of Mumbai's landscape is covered by slum areas. In the year 1995 Government of Maharashtra formed SRA(Slum Rehabilitation Authority) to provide a better lifestyle to slum dwellers. This Authority aims to redevelop slum locality by developing residential projects and shifting existing tenants into better housings societies. These housing projects are built by private developers after the consent of existing stakeholders of the area. Such housing societies are called SRA housing Societies and Flats in an SRA building are termed as SRA Flats.
Components in SRA Developments
Usually, there are two types of constructions undertaken as a part of SRA projects. One is for the existing slum dwellers and the second one is the developer component. The builder built a Sale building in some part of the land to recover and earn a profit from the whole project.
Rules and Regulation for SRA Projects issued by Authority;
- As per guidelines provided by Slum Rehabilitation Authority flats allotted in the SRA project are non-transferable for the period of 10 years from the date of allotment.
- If a buyer wants to buy a flat in the SRA building he or his family members should not have any other home in their name within the corporation area. Also, they should provide Domicile Certificate for the purchase.
- After 10 Years when the flat will become eligible for sale, the buyer will have to pay the transaction fee of Rs 1,00000/- or the equivalent amount of Stamp duty charges whichever is more to the respective authority.
- The buyer must be from an economically weaker section or from a lower-income group. Any institution or organization can not buy such flats.
How To Buy SRA Flats in Mumbai?
The main reason for buying a house in an SRA Building is its budget. The SRA flats are generally sold at low prices in Mumbai. That is why buyers are interested in buying flats there. But the buyer needs to check if SRA Project is more than 10 years old and the society is registered under the Maharashtra Co-operative society act-1960.
Can I Buy Flats In SRA Building?
Yes, You can buy flats in the SRA building anywhere in Mumbai if you can fulfill the below conditions.
1. SRA building must have a registered society.
2. Allotment date of the respective flat must be more than 10 years old.
3. All the parties including the buyer, seller, and Society must agree on the deal.
Documents to Check Before Buying a Flat in SRA Project
If You are planning to buy a Flat in SRA Project or society, the following documents need to be verified before buying a flat in SRA Project.
1.Adhaar Card of the property owner.
2.Pan Card of the Property Owner
3.Ration Card of the Flat owner
4.SRA Flat Allotment Later
5.Electricity Bill of the Flat
6.Tax receipt of Municipal Corporation
7.Building OC and CC
8.NOC from Society
Risk Involved in Buying SRA Flats;
The SRA flats seem very low-cost housing scheme but they also involved some risk. According to one report one-third of the total flats in SRA societies are illegally occupied and do not have the proper documentation.
The existing stakeholders of the society sell or rent the flat on the basis of the power of attorney and leave and license and shift to another slum locality. This is against rules and regulations provided by the government. The action on such illegal activities is hardly taken. Such flats are not eligible for home loans, therefore most of the transactions happen in cash components.
How To get a home loan for SRA Flats?
As already mentioned above SRA flats are not a transferable entity for 10 years from the date of allotment. Any private or nationalize bank does not provide a home loan in the first 10 years of allotment of the flat.
After 10 years of allotment of the property, any bank can provide a normal home loan as per the standards after providing all legal documents.
Thank You.
Team Mumbai PropertyGuide
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