Summary: The Government of Maharashtra with an objective to protect the interest of homebuyers from the malpractices of unfair builders and streamlining the disputes emanating from real estate sales had established Maharashtra Real Estate Regulatory Authority in 2017 (“Maha RERA or Authority”). The intent behind its establishment was to formulate the rules for regulating real estate sale transactions including but not limited to registration and sale of commercial and residential projects, speedy redressal of disputes, supervising project progress and ensuring necessary compliance of the obligations cast upon on the promoters.
The Government of Maharashtra had established MahaRERA in 2017 pursuant to the notification of the Real Estate (Regulation and Development) Act, 2016. The basic tenant for its formation was to protect public / homebuyer’s interestand to promote and regulate state’s real estate sector. The Authority benefits buyers by ensuring there is complete transparency at every step of the real estate transaction and also aids the promoters / builders by registering and providing detailed information of their respective commercial / real estate projects which thereby gratifies buyers’ trust and promotes real estate business.
That it is crucial to acquire information about MahaRERA before obtaining a home loan in Maharashtra. Understanding the role of MahaRERA can be bit challenging given the complexities involved and lack of awareness amongst the general public pertaining to its functioning. At a first glance, the Act may seem perplexing and baffling to public at large.Therefore, in order to resolve the ambiguity surrounding the aforementioned issues, the present article seeks to address the same in the succeeding paragraphs. Getting acquainted with the act not only helps the prospective buyers to determine whether they are investing in the right property / projectand but also provide a uniform redressal mechanism to deal with their disputes with the builders.
Here is a quick guide that focuses on the act, the registration process, and other details one should be aware of.
What is the RERA Act in Maharashtra?
The Real Estate (Regulation and Development), 2016 (“RERA Act” or “Act”) primarily focused on establishing Real Estate Regulatory Authority in all states. The act defines the rules for conducting real estate dealings in the state and seeks to protect the interest of consumers / homebuyers. It includes operations associated with registration of projects and agents, resolving grievances of the allottees, ensuring strict compliance of the obligations cast upon promoters and providing requisite approvals and clearances for completion of the project as described under the Act. It is pertinent to note that Maharashtra was the first Indian state to implement the act in spirit and establish its Real Estate Regulatory Authority.
The primary objective for formulation of MahaRERA is to ensure and keep the government and relevant authorities informed of all property transactions taking place in the state, includingchange in ownership and supervision of projects that are registered with it. The idea is to instil confidence in general public to invest in real estate and bringing transparency to the entire process. Moreover, MahaRERA prohibits construction of those projects that are not registered. The act benefits all parties involved in a real estate deal, including buyers, sellers, brokers, builders, agents, etc.
Must Read: RERA Act: An Ultimate Guide to Real Estate Regulatory Authority
The MahaRERA Registration Process
Before purchasing or dealing with any property / real estate project in Maharashtra, it advised to familiarise yourself with the registration process:
- Visit official website of MahaRERA at https://maharerait.mahaonline.gov.in/
- Click on ‘New Registration’.
- Select one of the three options out of promoter, complainant, and real estate agent.
- Enter the required details and submit the necessary documents, including the PAN card, contact and address information, past project details, encumbrance certificate, etc.
- Complete the other registration formalities.
Benefits of the MahaRERA
The MahaRERA provides a range of benefits to all parties involved in a real estate transaction. Few of these are summarised hereunder:
- Ensures transparency in all real estate projects, even of those conducted without registration.
- Involves all parties participating in the transaction and protect the rights of such parties.
- Also formulates the rules to maintain operational and financial discipline
- Ensures that the sellers adhere to the buyer’s requirements and resolve complaints within a specified time frame.
- Provides timely access to information related to real estate projects, such as project details, registration information and status, and more.
- Protects buyers from delays in possession, fraudulent activities and incorrect pricing.
- Provides a platform for buyers and sellers to resolve disputes through mediation.
Rules and Regulations of the RERA Act in Maharashtra
While the rules and regulations of RERA runs into many pages, a comprehensive gist of important provision is provided hereunder:
- It is mandatory for every residential and commercial project to be registered with MahaRERA.
- Obligation cast upon real estate developers to submit regular updates about their ongoing projects and the same is reflected on the authority’s official website.
- Standard format for Sales Agreements ensuring incorporation relevant clauses to avoid additional charges and penalties.
- Developers must rectify any defects within five years of selling the property.
- Homebuyers must pay only for the carpet area mentioned in the project details rather than for any super-built area.
- Promoters must disclose all clear project titles.
- If the developers fail to complete the construction on time and do not provide possession, the homebuyer’s is entitled to receive the interest over the amount paid and refund of entire amount .
- Before altering an ongoing project’s plan, it is necessary for the promoters to take permission from each member.
- Agents under must register themselves as per the provision contained in the Chapter II of the MahaRERA Act.
- Designated authorities must resolve any complaint raised by homebuyers within 120 days.
MahaRERA Objectives
MahaRERA aims to address and tackle the following issues in the real estate sector:
- Significant delay in the project completion.
- False information presented to homebuyers.
- Siphoning of funds to other projects.
- Misleading offers to attract pre-bookings.
- Absence of possession date in the sale agreement.
- Altering of project plan without the buyers’ consent.
Must Read: Section 80EE of Income Tax Act – A Complete Guide
Conclusion
While dealing with properties in Maharashtra, awareness regarding the role of MahaRERA becomes essential. The RERA Act was implemented to protect buyers from fraud, assure sellers’ financial security, and ensure property’s timely construction. To give effect to the aforementioned objectives, MahaRERA was established in 2017. Not only MahaRERA regulates the real estate transactions but also provides for grievance redressal mechanism to the homebuyers and conduct periodical review of the projects under construction.
