Maharashtra Revenue Minister Chandrashekhar Bawankule has announced a major change to how builders can collect payments from homebuyers, one that will stop developers from receiving the entire cost of a flat before handing over possession.
Bawankule said that under the proposed change, a builder will only be able to collect 75 to 80 per cent of the total consideration for an apartment before the agreement for sale is executed. The remaining 20 to 25 per cent will be collected only at the time of final registration of the sale deed, effectively tying the last leg of payment to the completion of the transaction rather than allowing builders to front-load collections.
He made the announcement on X, where he framed the move as a direct response to a pattern of fraud in the state’s real estate sector. According to him, several builders have taken full payment from homebuyers without ultimately delivering the flats as promised, leaving buyers with completed payments but no home, or homes that fall short of what was agreed. By holding back a slice of the payment until registration, the government’s stated aim is to give buyers leverage at the most critical stage of the transaction, the point at which ownership actually transfers.
Bawankule’s original post can be viewed here: https://x.com/cbawankule/status/2088168731809820973?s=20
Bawankule said the government intends to amend the state’s Registration Act to formally implement this payment structure. Since registration law falls under the Revenue Department, which he heads, this gives the ministry a direct legislative route to enforce the change rather than relying solely on RERA-linked payment schedules, which currently govern most builder-buyer payment milestones in Maharashtra.
The practical effect of this proposal is significant for homebuyers. As it stands, builders can structure payment plans that require buyers to pay up to 100 per cent of the flat cost well before possession, sometimes years in advance of a project’s completion. If Bawankule’s proposed changes go through, a buyer would retain financial leverage right up to the point of final registration, since the builder would not receive the last 20 to 25 per cent of the money until that stage. This shifts some of the completion risk back onto the developer.
The announcement comes amid continuing scrutiny of builder conduct in Maharashtra, with MahaRERA and the MREAT frequently adjudicating disputes over possession delays, incomplete construction, and payment-related grievances filed by homebuyers and housing societies. A statutory change routed through the Registration Act would sit alongside RERA’s existing framework, adding another layer of protection tied specifically to the registration process.
No draft bill or amendment text has been released publicly yet, and the timeline for when this change would be tabled in the state legislature has not been specified.
Also Read: Now Individual Flat Owners’ Names To Be Entered In Property Card
