Dual Registration Of Property To Safeguard Home Buyers.
MahaRERA Registration Mandatory For Registration Of Flats With Stamp Duty Office
In a bid to increase transparency in real estate industry and further to save home buyers from crony developers, the state government has come up with a new resolution. The government resolution by the Revenue and Forest department has been directed to the stamp duty and registration office. The resolution makes it mandatory that flats of projects which are meant to be registered with Maharashtra Real Estate Regulatory Authority will be registered by stamp duty office, provided they are registered with MahaRERA first.
Every under construction project, where the developer offers to sell his flats needs to be registered, with MahaRERA. Except for those that fall under the section 3(2) of the Real Estate Regulations and Development Act, 2016. The section reads, “Where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases.”
Adv Vinod Sampat say this is a good move by the government, “Government should have better coordination between the MahaRERA website and the stamp duty website for the officials to check the details immediately without making the home buyers suffer. Now developers will have to register with MahaRERA because, if an agreement isn’t registered, availing a bank loan becomes difficult and developers need money. So to execute an agreement, now MahaRERA is mandatory.”
The government resolution issued by the Revenue and Forest department says, that under section 44 of Maharashtra Registration Act 1961, Certain requirements to be verified before accepting a document for registration. This includes a part, (i) that if the transaction which is intended by the document, is prohibited by any existing Act of Central or State Government, then the true copy of requisite permission or No Objection Certificate from the Competent Authority under the said act, has been attached along with the document and that the document is not written in contradiction with any vital term or condition mentioned in that permission or No Objection Certificate.
The resolution by the government says that the above mentioned section (44) of Registration Act of providing a NOC will be applicable to all those projects that is ongoing and not registered with MahaRERA.
Adv Shirish Deshpande, Chairman of Mumbai Grahak Panchayt says, “Yes of course all on going projects were always required to be registered with MahaRERA, with exception of plot less than 500 sq mtrs or project with less than 8 flats. What the above Circular will achieve is any builder enters into sale agreement with buyers without registering with MahaRERA, the agreement won’t be registered.”