Key Provisions of MahaRERA

Registration of Real Estate Projects and Agents

One of the cornerstone provisions of the Maharashtra Real Estate Regulatory Authority (MahaRERA) is the mandatory registration of real estate projects and agents. This requirement aims to bring transparency, accountability, and professionalism to the real estate sector in Maharashtra.

Project Registration

Under MahaRERA, all real estate projects, including residential and commercial developments, must be registered before any marketing or sale activities can begin. The registration process involves the following key steps:

1. Submission of Project Details: Developers must provide comprehensive details about the project, including land status, approved plans, timelines for completion, and the total cost. This information is submitted through the MahaRERA online portal.

2. Documentation: Developers need to submit various documents, such as the title deed of the land, sanctioned plans, project layout, and approvals from local authorities. These documents ensure that the project is legally compliant and has the necessary permissions to proceed.

3. Bank Account Details: Developers are required to maintain a separate escrow account for each project. This account is used exclusively for the project’s construction and land costs. At least 70% of the funds collected from buyers must be deposited into this account, ensuring that the money is used for the intended purpose.

4. Quarterly Updates: Once registered, developers must update project details on the MahaRERA portal every quarter. This includes the progress of construction, status of approvals, and any changes to the project timelines.

5. Registration Number: Upon successful registration, the project is assigned a unique registration number. This number must be mentioned in all project advertisements and promotional materials.

Agent Registration

Real estate agents also play a crucial role in the sector and are required to register with MahaRERA. The registration process for agents includes:

1. Application Submission: Agents must submit an application through the MahaRERA portal, providing details about their business, contact information, and past experience in the real estate sector.

2. Documentation: Agents need to provide identification documents, proof of address, and evidence of their professional qualifications and experience.

3. Registration Fee: Agents are required to pay a registration fee, which varies depending on whether the agent is an individual or a corporate entity.

4. Unique Registration Number: Once registered, agents receive a unique registration number, which must be displayed on all promotional materials and used in all transactions.

By mandating the registration of projects and agents, MahaRERA aims to create a transparent and accountable environment where buyers can make informed decisions and trust the stakeholders they are dealing with.

Duties of Promoters, Agents, and Allottees

MahaRERA outlines specific duties and responsibilities for promoters (developers), agents, and allottees (buyers) to ensure a fair and balanced real estate market.

Duties of Promoters

Promoters are the key stakeholders in real estate projects, and MahaRERA imposes several obligations on them:

1. Adherence to Project Plans: Promoters must adhere to the approved plans and project specifications. Any changes to the plans require the consent of two-thirds of the allottees.

2. Timely Completion: Promoters are responsible for completing the project within the stipulated timeline. In case of delays, they must compensate buyers for the delay.

3. Disclosure of Information: Promoters must disclose all relevant project information on the MahaRERA portal, including layout plans, approvals, timelines, and financial details. This information must be updated quarterly.

4. Maintenance of Records: Promoters must maintain accurate records of the project, including financial transactions, approvals, and agreements with buyers.

5. Issuance of Allotment Letter: Promoters must issue an allotment letter to buyers, specifying the terms and conditions of the sale, including the possession date, payment schedule, and project specifications.

Duties of Agents

Real estate agents act as intermediaries between buyers and promoters, and MahaRERA imposes several duties on them:

1. Fair Practices: Agents must ensure that all transactions are conducted in a fair and transparent manner. They should not misrepresent any information about the project or the promoter.

2. Disclosure of Information: Agents must provide accurate information to buyers about the project, including the status of approvals, project specifications, and timelines.

3. Compliance with MahaRERA: Agents must comply with all regulations set forth by MahaRERA and ensure that they only deal with registered projects and promoters.

4. Assistance to Buyers: Agents should assist buyers in understanding the terms and conditions of the sale and ensure that they are fully aware of their rights and obligations.

Duties of Allottees

Buyers, referred to as allottees in MahaRERA, also have specific duties and responsibilities:

1. Timely Payments: Allottees must make payments to the promoter as per the agreed schedule. Delays in payment can lead to penalties and affect the possession timeline.

2. Compliance with Terms: Allottees must comply with the terms and conditions specified in the allotment letter and the sale agreement.

3. Participation in Project Decisions: Allottees have the right to participate in decisions related to project changes. Their consent is required for any major alterations to the project plans.

By clearly defining the duties of promoters, agents, and allottees, MahaRERA ensures that all stakeholders are accountable and that their rights and responsibilities are well understood.

Standardization and Transparency in Project Advertisements

MahaRERA places a strong emphasis on the standardization and transparency of project advertisements to protect buyers from misleading and false claims.

Standardization of Advertisements

1. Inclusion of Registration Number: All advertisements and promotional materials must include the project’s unique MahaRERA registration number. This ensures that buyers can verify the project’s authenticity on the MahaRERA portal.

2. Accurate Information: Advertisements must provide accurate information about the project, including the layout plan, project specifications, amenities, and possession timelines. Any exaggerated or false claims are strictly prohibited.

3. Use of Approved Plans: Promoters must use only the approved layout plans and specifications in their advertisements. Any deviations from the approved plans must be disclosed and require the consent of the allottees.

Transparency in Advertisements

1. Disclosure of Approvals: Advertisements must disclose the status of all necessary approvals, such as building permits, environmental clearances, and land titles. This ensures that buyers are aware of the project’s legal compliance.

2. Project Status: Advertisements should provide accurate information about the project’s status, including the current stage of construction and the expected completion date. This helps buyers make informed decisions based on the project’s progress.

3. Financial Information: Promoters must disclose the total cost of the project and the funding sources in their advertisements. This includes details about any loans or financial arrangements that have been made for the project.

By standardizing advertisements and ensuring transparency, MahaRERA aims to create a level playing field where buyers are well-informed and protected from deceptive marketing practices.

Conclusion

The key provisions of MahaRERA, including the mandatory registration of projects and agents, the duties of promoters, agents, and allottees, and the standardization and transparency in project advertisements, collectively work towards transforming Maharashtra’s real estate sector. These provisions ensure that all stakeholders are accountable, transactions are transparent, and buyers are protected from unfair practices.

By fostering a regulatory environment that promotes trust and reliability, MahaRERA continues to play a pivotal role in the growth and development of the real estate sector in Maharashtra. As the authority evolves and adapts to the changing dynamics of the market, its commitment to protecting consumer interests and promoting transparency remains at the forefront of its mission.