The Maharashtra Real Estate Regulatory Authority (referred to as RERA Maharashtra or MahaRERA) is a governing and regulatory authority overseeing real estate buying and selling in the state of Maharashtra. It also ensures that real estate transactions are transparent and fair for buyers as well as real estate developers.
The real estate industry has been booming in every corner of the country. The Real Estate (Regulation and Development) Act, of 2016, was brought into force to provide a level playing field for real estate developers across the nation. It also has several features that provide a sense of fairness and security to buyers of both residential and commercial properties.
Most Indian states have their own RERA board to oversee the development of their real estate sector. MahaRERA is one such board that operates in the state of Maharashtra.
RERA Maharashtra came about to take steps in promoting and regulating the development of realty in the state. Maharashtra is among the first Indian states to implement RERA, and its main objective is to bring about transparency in the buying and selling of plots and buildings, both residential and commercial.
Every residential and commercial project must be registered under MahaRERA. Maha-RERA plays a crucial role in ensuring transparency, accountability, and the protection of homebuyers’ interests in the real estate sector.
A few of the Important benefits of Maha-RERA are:
1. Transparency and Disclosure: Maha-RERA promotes transparency by mandating that developers register their projects with the authority. This registration process requires developers to provide detailed information about the project, including project plans, land titles, timelines, approvals, and financial aspects. This transparency helps buyers make informed decisions by having access to accurate and reliable information.
2. Standardized Carpet Area: Maha-RERA introduces a standardized method of calculating the carpet area of residential units. This ensures consistency across projects and enables buyers to compare different properties accurately. The standardized carpet area calculation eliminates ambiguity and provides clarity regarding the actual usable area within the property.
3. Timely Completion of Projects: Maha-RERA emphasizes the timely completion of projects. Developers are required to provide a timeline for project completion during the registration process. This helps in reducing delays and ensures that buyers receive possession of their homes as per the agreed-upon schedule. In case of any delays, developers are liable to pay compensation to the buyers.
4. Protection of Buyer’s Interest: Maha-RERA provides a platform for buyers to address their grievances and seek redressal. Buyers can approach Maha-RERA in case of any issues related to project delays, unfair practices, deviations from approved plans, or any other concerns. Maha-RERA has the authority to mediate and resolve disputes between buyers and developers, ensuring the protection of the buyer’s interests.
5. Escrow Account: Maha-RERA mandates that developers maintain a separate escrow account for each project. Buyers’ funds collected for a specific project are deposited in this account, and these funds can only be utilized for the development of that particular project. This provision prevents the diversion of funds and safeguards the buyer’s Investment.
6. Enhanced Credibility: Maha-RERA enhances the credibility of the real estate sector by promoting fair practices and ensuring compliance with regulations. The registration and disclosure requirements, along with the grievance redressal mechanism, create a transparent and trustworthy environment for buyers. This helps in building confidence and trust between buyers and developers.
7. Real Estate Agent Regulation: Maha-RERA also regulates real estate agents operating in Maharashtra. Agents are required to register with Maha-RERA and comply with the code of conduct specified by the authority. This ensures that agents act in the best interest of buyers and maintain professional standards.
Key Highlights of RERA approved projects:
The RERA Act establishes a unified legal framework for purchasing flats, apartments, and other real estate. Therefore, RERA approval is needed to standardize real estate practices throughout the country.
Here are some of the features of RERA-approved projects:
1. Reserve account:
One of the common reasons for project delays was that funds collected from one project were invariably diverted to fund new, different projects. To avoid such a diversion, promoters must now place 70% of all project receivables in a separate reserve account.
The proceeds of such an account can only be used for land and construction costs, and they must be certified by a professional.
2. Continuous disclosures by promoters:
Following the Act’s implementation, home buyers can track the progress of RERA-registered projects on the RERA website. It is the responsibility of promoters to make timely submissions to the regulator about the progress of the project.
3. Title representation:
Promoters must provide a positive warranty on their proper title and interest in the land, which can be used against them later by the home buyer if a title defect is discovered. Furthermore, they must obtain insurance against the title and construction of the RERA-registered project, the proceeds of which must be paid to the allottee upon the execution of the sale agreement.
4. Standardization of the sale agreement:
The RERA Act requires promoters and home buyers to enter a standard model sale agreement. Typically, promoters include punitive clauses that penalize home buyers for any default, whereas similar defaults by the promoter result in negligible or no penalty. However, such punitive clauses may be a thing of the past, and home buyers can expect more balanced agreements in the future.
5. Penalty:
To ensure that violations of the RERA Act are not taken lightly, violators face stiff monetary fines (up to 10% of the project cost) and imprisonment. Therefore, all Mittal projects proudly stand as shining examples of excellence in the real estate industry, as each and every one of them is RERA approved. The implementation of the Real Estate Regulatory Authority (RERA) has revolutionized the way real estate
projects are executed, benefiting both developers and homebuyers alike. With RERA’s stringent guidelines and transparency, Mittal projects offer peace of mind to buyers, ensuring timely delivery, quality construction, and fair practices. As RERA continues to foster trust and accountability in the real estate sector, investing in Mittal’s RERA-approved projects becomes a wise choice, providing homebuyers with a secure and promising future.