D-Hub’s Ultimate 75-Point Due Diligence Checklist for Builders Proposal Assesment

“What Every Society Must Ask Before Choosing a Builder for Redevelopment”

A Strategic Toolkit from D-Hub for Co-operative Housing Societies in Maharashtra

🏗️ A. Construction Planning & Building Features

  1. What will be the number of storeys in the new buildings?
  2. How many buildings will be constructed? Can you share tentative location and picture?
  3. What is the height of newly constructed flat?
  4. Will the individual flat have the pocket terrace?
  5. Will the terrace be kept vacant or have jogging track or amenities?
  6. Will there be dish antenna installed on the terrace?
  7. Approximately how many feet will the building be above ground floor level to avoid water logging?
  8. What are the salient features of redevelopment of the complex?
  9. Will the society have a separate office?
  10. Will there be a three-phase meter for each flat?

📐 B. Area, Floor & Flat Preferences

  1. How much extra area will be offered?
  2. If I want to purchase additional carpet area, will I get it?
  3. If I want a flat on a higher floor, what will be the extra money to be paid?
  4. If a member wants a flat on a higher floor, what is the additional consideration to be paid?
  5. If a person wants additional area, how will it be accommodated?
  6. If someone wants to amalgamate two flats, how will that be handled?

🛋️ C. Amenities and Common Facilities

  1. Has the list of amenities been explained in detail?
  2. What are the additional amenities to be provided to individual flat purchasers?
  3. What are the additional amenities to be provided to the society?
  4. What amenities will be shared among all societies?
  5. Who will control the common amenities?
  6. How many car parkings will be allotted to each member?
  7. If a member wants to purchase car parking, will that be possible?

🧾 D. Legal Documents & Approvals

  1. What documents should builder ask before taking up redevelopment?
  2. What is the importance of title clearance certificate?
  3. What things should the architect verify before builder’s final quote?
  4. What is the stamp duty on development agreement?
  5. Will all societies sign one common agreement or have separate agreements?
  6. What is the procedure for amalgamation of plot?
  7. Is registrar’s permission required for redevelopment?
  8. Should there be a termination clause if builder defaults?
  9. Can the society terminate the agreement for substantial delay by the builder?
  10. Society should insist for a copy of the agreement between builder and new flat purchasers.
  11. What types of land can builder acquire from MHADA/BMC for redevelopment?

💰 E. Financial Commitments & Taxation

  1. What are the hidden expenses that flat purchasers have to pay?
  2. Who will pay GST?
  3. Who will pay stamp duty?
  4. Who will pay registration fee?
  5. What will be the rent offered by the developer?
  6. What will be the corpus offered by the developer?
  7. What are the income tax implications on redevelopment?
  8. Does the society have to pay income tax?
  9. What are GST implications during redevelopment?
  10. Does the society have to pay GST on resale of flat?
  11. What are the income tax implications on corpus and rent?
  12. What is the best tax planning approach for society during redevelopment?
  13. Can rent and corpus be set off against extra area to reduce tax?
  14. What would be the appropriate charges paid to members – once or every 12 months?
  15. What will be the transportation charges – once or every 11 months?

🏦 F. Loan, Valuation & Finance Access

  1. What will be the likely loan rate?
  2. Which banks are empaneled for the project?
  3. Approximately how much loan can a flat purchaser expect?
  4. How will stamp duty be assessed for additional area purchased?
  5. What to do if some members have home loans — who will get NOC from the bank?
  6. How to ensure project does not get delayed due to member loans?

🏛️ G. Coordination Between Builder and Society

  1. Who will allocate flats – builder or society?
  2. Who will be the contact person for society/members?
  3. What precautions should the society take during redevelopment?
  4. Provide a bar chart for all stages of construction.
  5. Explain redevelopment progress timeline – documentation, IOD, CC, etc.

👪 H. Member Rights, Legal Succession & Women’s Rights

  1. What documents are needed for probate/letter of succession?
  2. Are extra benefits available for old/dilapidated buildings?
  3. If C1 category is declared, what advantages are available to society?
  4. What are women’s rights regarding stamp duty?
  5. Should members file nomination forms during redevelopment?
  6. If a member dies during redevelopment, how will builder transfer the flat to heirs?

📲 I. Communication & Monitoring Mechanisms

  1. How will communication be done after demolition?
  2. How can members track progress of construction?
  3. Will there be a WhatsApp group for members and builder?
  4. Will video updates be shared on WhatsApp every 3 months?

📑 J. Sample Agreements & Special Requests

  1. Please send a sample permanent alternate accommodation agreement.
  2. Will flats have pocket terraces? (Cross-listed for completeness)

K. Smart Additions

  1. Is there a detailed Exit Strategy if the developer backs out mid-way or project gets stuck?
  2. What insurance coverage will be provided during construction for building risk or third-party damage?
  3. Will the developer provide a post-possession maintenance fund or deposit to manage society upkeep for the first 12–24 months?

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