Before you sign, confirm that the developer is registered with MahaRERA, will give a bank guarantee of 20% of the project value, and has fixed your new carpet area, corpus fund, rent and completion date in writing. Make sure the Development Agreement and your own Permanent Alternate Accommodation Agreement (PAAA) are both registered, and have a lawyer or Project Management Consultant (PMC) read every clause. Never vacate your flat before these are in place.
Redevelopment can give a housing society a new building, more space and modern amenities. It is also a long contract that is hard to undo once it is signed.
If your society is considering society redevelopment in Borivali, this checklist gives you the questions to ask before anyone signs. It is written for society members and managing committees, in plain language.
First, understand the two agreements
Two documents matter most:
- Development Agreement (DA): the contract between the society and the developer. It covers the project terms, timelines and obligations.
- Permanent Alternate Accommodation Agreement (PAAA): your own contract as a member. It fixes your new flat, your rent during construction and your corpus fund.
Under the Section 79A guidelines for housing societies in Maharashtra, both are expected to be registered. A promise made only in a meeting, a brochure or a message is not enough.
The 12-point checklist
1. Check that the selection process was followed properly
The developer should be chosen through a tender and a Special General Meeting, with help from a PMC or architect. The guidelines also expect an authorised officer from the Registrar's office to be present at the selection meeting. Ask for the meeting records. The consent required from members is set by the current government rules, so ask your PMC or lawyer for the exact figure that applies today.
2. Confirm MahaRERA registration
The project should be registered with MahaRERA before construction begins. Look it up on the MahaRERA website yourself, and check the developer's other registered projects and their status.
3. Insist on a 20% bank guarantee
The guidelines require the developer to give the society a bank guarantee equal to 20% of the project value. This is real security that the society can claim if the developer defaults. Check the bank, the amount, the validity period and who holds it.
4. Fix your new carpet area in writing
Your PAAA should state the carpet area of your new flat, its floor, and the specifications. Do not accept words like "approximately" or "as per plan" without numbers.
5. Check the corpus fund
A corpus fund is a lump sum from the developer, kept for the new building's upkeep. The amount, the date it is paid and who controls it should all be written into the agreement. It should not be reducible later.
6. Check rent and transit arrangements
Confirm the monthly rent, the annual increase if any, the date rent starts and what happens if rent is delayed. Also check any shifting allowance and how rent will continue if the project runs late.
7. Look at timelines and penalties
The guidelines generally expect the project to be completed within two years of the plinth certificate, extendable to three in exceptional cases. The Development Agreement is usually signed within three months of the developer's selection. Make sure the agreement states a completion date and a penalty or extra rent for delays.
8. Verify approvals and title
Ask whether the society's land title is clear, which approvals are in place, and which are still pending. A project that starts before approvals are ready can stall.
9. Read the termination and default clauses
What happens if the developer stops work, or if the society wants to end the contract? The agreement should name the conditions, the remedies and who pays.
10. Check the sale of free units
The developer usually sells extra flats to fund the project. Ask how much of the project is meant for sale, and how the sale proceeds will be used to fund construction.
11. Confirm quality and amenities
List the amenities, parking, lifts, fire safety and building specifications. Ask which are promised in the agreement and which are only in the marketing material.
12. Get independent legal and technical review
Have your own lawyer read the DA and PAAA. A PMC or structural expert should review the plans and the cost estimate. Do not rely only on the developer's lawyer.
Quick table: what to ask before you sign
| Item | What to confirm | Why it matters |
|---|---|---|
| Bank guarantee | 20% of project value, bank, validity | Protection if the project stops |
| MahaRERA | Project registration number and status | Public record and a complaint route |
| Carpet area | Exact area and floor in the PAAA | Avoids disputes at possession |
| Corpus fund | Amount, payment date, control | Future upkeep of the new building |
| Rent | Amount, start date, delay terms | Keeps you housed during construction |
| Timeline | Completion date and penalty | Limits how long you stay away |
| Registration | DA and your PAAA both registered | Makes the promises enforceable |
Red flags to watch for
- A developer who will not give a bank guarantee or show a MahaRERA registration.
- Offers of far more space or a much larger corpus than other bidders, with nothing explained.
- Pressure to sign quickly or to vacate before the agreements are registered.
- Verbal promises that are missing from the written documents.
- Unclear answers about approvals, finances or earlier projects.
Choosing the other side of the table
The paperwork is only as good as the party behind it. A trusted real estate developer in Mumbai will show you past work, financial strength and a clear process, and will be comfortable with your lawyer reading every page. We cover this in more detail in our guide on how to evaluate a redevelopment builder, which looks at track record, approvals and finances. Keep in mind that a redevelopment developer in Mumbai should be happy to answer every point on this checklist in writing, including questions about Borivali redevelopment projects they have handled.
How Bhatia Builders approaches redevelopment
Bhatia Builders has worked in Mumbai since 1987, is ISO 9001:2015 certified and is a CREDAI-MCHI member. Its Redevelopment Corner describes a six-step process: feasibility, approvals, design, construction, handover and care, with transparent contracts and dedicated liaison support.
If your society wants to see how that process works, you can read about Bhatia Builders redevelopment and the team that handles it.
Whatever you decide, treat the agreement as the final word. A careful read now saves years of trouble, and a well-checked plan makes society redevelopment in Borivali smoother for every member.
Frequently Asked Questions
Which agreements must be registered in a redevelopment project? The Development Agreement between the society and the developer, and each member's Permanent Alternate Accommodation Agreement, are both expected to be registered. Registration makes the terms enforceable.
What is a bank guarantee in redevelopment? It is a promise by the developer's bank to pay the society if the developer defaults. The Section 79A guidelines ask for a guarantee equal to 20% of the project value.
Is MahaRERA registration compulsory for redevelopment? The redevelopment project should be registered with MahaRERA before construction begins. You can check the registration on the MahaRERA website.
How long should a redevelopment project take? The guidelines generally expect completion within two years of the plinth certificate, with an extension to three years only in exceptional cases. Your agreement should state a date and a penalty for delay.
Should members vacate before the agreements are registered? No. Do not vacate until the Development Agreement and your own PAAA are registered, and the bank guarantee and rent arrangements are in place.