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RERA came into force on 1st May: Key points to know

RERA Came Into Force On 1st May: Key Points To Know

Governor of Maharashtra, Mr. C.V. Rao announced the launch of the Maharashtra Real Estate Regulatory Authority on Maharashtra Day and the official website came into force.

As stated on the website, the key objectives of the Act are:

  • Ensuring Transparency & Efficiency in real estate sector in regards to sale of plot, apartment, building or real estate project.
  • Protecting the interest of consumers in real estate sector
  • Establishing adjudicating mechanism for speedy dispute redressal
  • Establishing Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority

Here are a few things about the newly introduced Act which we should know about –

Real Estate Agent Registration:
Registration will be valid only in Maharashtra for a period of 5 years. Every Agent has to be listed by Promoter during the Project Registration / Status Updates without which Agent can’t market the project. If any real estate agent fails to register, he shall be liable to a penalty of Rupees 10,000/- for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated. 
Source: Maharashtra Real Estate Regulatory Authority ( MahaRERA)

Maharashtra RERA
According to a few experts, Maharashtra RERA is stricter compared to other states. For example, there is a clause that allows an agreement to be terminated only after giving a 15-day notice to a buyer who has defaulted on payment thrice. The notice period and three chances are aimed at giving buyers time to arrange for funds.

Under the new law, a developer can withdraw money kept in a separate account for the project, only after its architect, engineer and accountant certify the progress of the project. The Maharashtra RERA also prohibits discrimination on the basis of religion, caste and gender, which, if implemented properly would be a boon for homebuyers.

A few FAQs:

Which areas of Maharashtra are included in the Planning Area as defined in the Act?
Ans: In accordance with notifications issued by Urban Development Department of Government of Maharashtra, MR & TP Act is applicable to all the districts of Maharashtra. Hence, all areas of Maharashtra are included in Planning Area as defined in Section 2(zh) of the Act.

Can advertisement be issued for a new project after 1st May, 2017 without registering the said project?
Ans: No. The advertisement issued, for a new project, after1st May 2017 must carry the MahaRERA Registration Number of the project.

Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to MahaRERA? 
Ans: Yes, the layout of the real estate project has to be approved. However, the promoter may include some buildings in his application of registration where apartments are proposed and the Building approvals are pending. Building Approval for the apartment must be obtained before the agreement for sale is signed between the promoter and buyer, regarding the said apartment. 
Source: Maharashtra Real Estate Regulatory Authority ( MahaRERA)

The big question, however, remains, whether or not the state is ready with the infrastructure and resources to implement the Act. Also most developers and agents are still seem to be struggling to understand the Act and are still preparing themselves to comply with the regulations.

Let’s wait and watch how RERA benefits the buyers, the developers and the real estate industry as a whole.


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