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 established the 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 with the obligations cast upon on the promoters.
The Government of Maharashtra established MahaRERA in 2017 pursuant to the notification of the Real Estate (Regulation and Development) Act, 2016. The basic tenet for its formation was to protect the public/homebuyer’s interest and promote and regulate the state’s real estate sector. The authority benefits buyers by ensuring that there is complete transparency at every step of the real estate transaction and also aids the promoters/builders by registering and providing detailed information about their respective commercial/real estate projects, which thereby gratifies buyers’ trust and promotes the real estate business.
It is crucial to acquire information about MahaRERA before obtaining a home loan in Maharashtra. Understanding the role of MahaRERA can be a bit challenging given the complexities involved and the lack of awareness amongst the general public pertaining to its functioning. Getting acquainted with the act not only helps prospective buyers determine whether they are investing in the right property/project but also provides a uniform redressal mechanism to deal with any disputes arising 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 the 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 the registration of projects and agents, resolving grievances of the allottees, ensuring strict compliance with the obligations cast upon promoters and providing requisite approvals and clearances for the 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 the formulation of MahaRERA Act of Maharashtra is to ensure and keep the government and relevant authorities informed of all property transactions taking place in the state, including changes in ownership and supervision of projects that are registered with it. The idea is to instill confidence in the general public to invest in real estate and bring transparency to the entire process. Moreover, MahaRERA prohibits the construction of unregistered projects. 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
Who Needs to Register Under MahaRERA?
Under the MahaRERA, registration is mandatory for the following entities:
- Real estate developers (Promoters): Any builder or developer launching a residential or commercial project with over 500 sq. meters of land or more than eight units must register.
- Real estate agents: Brokers or intermediaries involved in selling, advertising, or facilitating property transactions must be registered.
- Ongoing projects: Any project that started before May 1, 2017, but remains incomplete must obtain MahaRERA registration.
- New projects: All new real estate projects launched in Maharashtra require MahaRERA registration before marketing or selling.
The MahaRERA Registration Process
Before purchasing or dealing with any property/real estate project in Maharashtra, it is advised to familiarise yourself with the registration process:
- Visit the official website of MahaRERA at https://maharerait.mahaonline.gov.in/
- Click on ‘New Registration’.
- Select one of the three options: promoter, complainant, or 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. A few of these are summarised hereunder:
- Ensures transparency in all real estate projects, even those conducted without registration.
- Involves all parties participating in the transaction and protects 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, 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 Act in Maharashtra run into many pages, a comprehensive list of important provisions is provided hereunder:
- It is mandatory for every residential and commercial project in Maharashtra 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 of 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 is entitled to receive the interest over the amount paid and a refund of the entire amount.
- Before altering an ongoing project’s plan, it is necessary for the promoters to get permission from each member.
- Agents must register themselves as per the provision contained in 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 the project plan without the buyers’ consent.
Must Read: Section 80EE of Income Tax Act – A Complete Guide
Step-by-Step Guide for Promoter Registration
Promoters (builders and developers) must register their projects before selling or marketing them. Follow these steps:
- Visit MahaRERA’s official website.
- Select "New Registration" and choose "Promoter" as the registration type.
- Fill in project details: Enter a project name, address, land area, and completion date.
- Upload required documents: PAN card, ownership details, sanctioned plan, approvals, and past project details.
- Pay the registration fee based on the project size.
- Submit the application and receive a unique MahaRERA registration number upon approval.
Step-by-Step Guide for Real Estate Agent Registration
Real estate agents must register with MahaRERA before conducting any sales. The process includes:
- Visit MahaRERA’s website.
- Select "New Registration" and choose "Real Estate Agent" as the category.
- Provide agent details: Name, address, business type (individual/company), and contact information.
- Upload required documents: PAN card, Aadhaar card, business registration certificate, and photographs.
- Pay the registration fee as applicable.
- Submit the application and receive a MahaRERA registration number upon approval.
Step-by-Step Guide for Complainant Registration
Homebuyers or stakeholders can file complaints against builders or agents using MahaRERA’s dispute resolution system:
- Visit MahaRERA’s official website.
- Click on "Register Complaint" and create a login ID.
- Fill out the complaint form: Provide project details, complaint summary, and supporting documents.
- Upload supporting evidence: Sale agreement, payment receipts, and communication records.
- Pay the complaint fee of ₹5,000 (for online submission) or ₹10,000 (for offline submission).
- Submit the complaint, after which MahaRERA assigns a hearing date within 120 days.
How to Check the Status of MahaRERA Registrations
To verify the registration status of a project, promoter, or agent:
- Visit MahaRERA’s website.
- Click on "Registered Projects" or "Registered Agents" in the menu.
- Enter the project/agent name or registration number in the search bar.
- View details, including project approval status, progress updates, and legal compliance.
- Download reports for future reference or to raise concerns if discrepancies arise.
Conclusion
While dealing with properties in Maharashtra, awareness regarding the role of MahaRERA becomes essential. Not only does MahaRERA regulate real estate transactions but also provides for grievance redressal mechanisms for homebuyers and conducts periodical reviews of the projects under construction.
FAQs
What is the difference between MahaRERA and RERA?
RERA (Real Estate (Regulation and Development) Act, 2016) is a national law regulating the real estate sector across India. MahaRERA is the state-specific authority established under RERA to regulate real estate transactions in Maharashtra, ensuring compliance, transparency, and grievance redressal for homebuyers and developers.
What is the interest rate of MahaRERA?
MahaRERA mandates developers to pay interest on delayed possession at a rate equal to State Bank of India’s highest marginal cost of lending rate (MCLR) plus 2%. This compensates homebuyers for delays and is applicable until the property is handed over as per the agreement.
