The Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017 in the state of Maharashtra through Maharashtra Real Estate Regulatory Authority (hereinafter referred to as “MahaRERA”) has the mandate to:
- Have real estate projects and agents registered.
- Usher in transparency in the sale of flats, plots and buildings.
- Protect customers, allottees, real estate agents and promoters who are involved in real estate transactions.
- Facilitate dispute resolution through a dispute settlement method.
- Create an appellate tribunal which buyers can approach to resolve disputes.
- Provide recommendations to the appropriate government authorities in matters related to development and promotion of real estate.
In Maharashtra, registration under MahaRERA is compulsory for each and every residential and commercial project. Real estate builders are not permitted to advertise, book or sell any real estate without registration.
Features of MahaRERA
- RERA AUTHORITY: MahaRERA handles registrations related to the state of Maharashtra as well as the union territories of Dadra and Nagar Haveli, and Daman and Diu
- VOLUME OF GRIEVANCES: Up to 23 September 2019, the regulatory authority received 8,968 complaints; of these, 8,351 complaints were against registered projects and 617 complaints were against unregistered projects. 5,355 orders have been passed against registered projects and 351 orders have been passed against unregistered projects
- EASY TO USE WEBSITE: MahaRERA also has an official website which is very user-friendly ( https://maharerait.mahaonline.gov.in/) and is detailed and easy to understand. It provides information of projects which have been registered with the MahaRERA. It facilitates homebuyers and property investors to be better informed. Users of the website can find information related to expected date of possession, credibility of brokers, etc. Most importantly, now that borrowers/home buyers know when the project is going to be completed, they can decide when they should apply for a home loan.
- BUYER FRIENDLY: MahaRERA is buyer friendly because only projects registered under MahaRERA are permitted to advertise. Delays in completion of projects are handled stringently; in case of delay in project completion, If the allottees / buyers do not want to withdraw from the project, the builders are required to compensate the buyers by way of refunding the buyers’/ allottees’ money along with interest at the stipulated rate for every month of delay till the developer hands over the property to the allottee.
Benefits of MahaRERA
MahaRERA has come as a blessing to real estate customers in Maharashtra, who can now buy the home of their dreams with confidence.
- HIGH LEVEL OF TRANSPARENCY: Before RERA Act, there was a lack of transparency in the real estate sector; buyers were left to the mercy of developers to obtain possession of property they purchased, promoters and developers could publish non-factual advertisements, etc. However, with the introduction of RERA, the consumer is provided all the information related to the project he has purchased his property in, the developer has to mandatorily adhere to registration of the project with RERA, report on its progress, intimate about delays, if any, is penalized for the same, etc. Additionally, buyers have the right to question each step involved in both development and promotion.
- ADHERENCE TO LAW AND ORDER: Now that MahaRERA has come into force, there is no scope for developers to funnel funds collected from investors and redirect them to some other projects. Down payment has been fixed at 10%. 7Non-compliance to RERA provisions attracts penal action of imprisonment up to 3 years as well as financial penalty.
- ACCOUNTABILITY: It is mandatory for Developers to deposit 70% of all funds paid towards a particular project into a single account. These funds are to be used only for construction or cost of land. Developers must also report progress periodically on the project to the regulatory authorities
- INCREASED TRUST: Perhaps the greatest benefit that customers have is the reinforced trust in the real estate sector. This has led to reinvigoration of the sector and greater confidence among property buyers.