MahaRERA Issues Guidelines to Ensure Safe Home Buying Practices

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced crucial guidelines aimed at ensuring a safe and secure home-buying experience for consumers. These measures, designed to empower homebuyers and increase transparency, focus on pre-purchase verification of project details and legal compliance.

Key Guidelines for Buyers
Homebuyers are advised to verify the following details on the MahaRERA website before entering into a transaction:

1. Construction plans approved by the local planning authority.
2. Commencement Certificate, detailing permissions granted to construct up to specific floors.
3. Title clearance report of the project land.
4. Any ongoing litigations or encumbrances related to the project.
5. Standard Agreement for Sale and Allotment Letter approved by MahaRERA, including parking, amenities, and facilities details.

These documents and details are mandatory for developers to submit during the registration process. Buyers can access them by searching for the project’s registration number on MahaRERA’s portal.

Mandatory Provisions for Developers
MahaRERA has made it compulsory for developers to sign agreements for sale with buyers once 10% of the total payment has been made. Additionally, the Agreement for Sale must follow the model draft provided by MahaRERA, which includes non-negotiable clauses on Force Majeure, Carpet Area, Defect Liability Period, and Conveyance Deed.

Developers must also provide detailed annexures listing parking types (garage, stilt, mechanical, or open) and precise dimensions. The annexure must also specify promised amenities and their completion timelines.

Safeguards for Registered Projects
To maintain compliance, MahaRERA enforces strict rules for registered projects. Developers are required to utilize 70% of collected funds exclusively for construction and must submit quarterly updates on project progress. Failure to comply leads to suspension of registration, freezing of bank accounts, and halting of transactions for the project.

MahaRERA also maintains a public list of projects that fail to adhere to these rules. Homebuyers are encouraged to review this list to avoid investing in non-compliant projects.

Quote from MahaRERA Chairman
Highlighting the importance of these measures, MahaRERA Chairman Manoj Saunik stated, “A stringent legal, technical, and financial scrutiny is undertaken before issuing a registration number for any project. We urge homebuyers to carefully examine all project details and insist on legally binding agreements to ensure a safe investment.”

Salient Features of MahaRERA Registered Projects

1. Financial discipline: Developers must utilize 70% of booking funds solely for construction.
2. Transparency: Comprehensive project details are available on the MahaRERA website.
3. Standardized transactions: Uniformity based on carpet area as defined by MahaRERA.
4. Grievance redressal: Buyers can file complaints with MahaRERA if needed.
5. Progress monitoring: Buyers can track project updates on the MahaRERA portal.

Empowering Buyers
MahaRERA’s guidelines aim to legally empower homebuyers and ensure accountability from developers. By remaining vigilant and utilizing the resources available on the MahaRERA portal, buyers can protect their investments and avoid potential risks in real estate transactions.

Also Read: builder fined by MahaRERA