By Varun Singh

A Homebuyer cancelling their booking, most of the times end up losing exorbitant amount. Maharashtra Real Estate Regulatory Authority (MahaRERA) has come up with a proforma with a table that clearly states, how much amount can be deducted from a homebuyer when the homebuyer cancels his booking.

Recently MahaRERA came up with a circular, that has given a dedicated table with a time line allowing builders to deduct a certain amount when a homebuyer cancels his booking.

The table states that if homebuyers cancel their booking within 15 days from issuance of the allotment letter the amount to be deducted will be nil.

If the booking is cancelled within 16 to 30 days from issuance of the allotment letter; then amount to be deducted is 1% of the cost of
the said unit.

If the homebuyer’s booking is cancelled within 31 to 60 days from issuance of the allotment letter, then the amount to be deducted is 1.5% of the cost of the said unit.

If the homebuyers booking is cancelled after 61 days from issuance of the allotment letter, then the amount to be deducted is 2% of the cost of the said unit.

The circular by MahaRERA further states that the amount deducted shall not exceed the amount as mentioned in the table.

Not only this, MahaRERA has also specified interest payment in case of delay in making payments, by homebuyers.

MahaRERA has states, that the in case of delay in making any payments, the homebuyer shall be liable to pay interest at the rate which shall be the State Bank of India highest Marginal Cost of Lending rate plus two per cent.

This means now builders cannot have their own way and will have to follow these guidelines issued by MahaRERA.

Bombay High Court, Advocate Prakkash Rohira, said, “While most developers have their own method of ‘booking form’, ‘allotment request form’, ‘application form’, we often find homebuyers who sign and submit certain documents being orally misled and in writing have made a misleading commitment. With such order Maharera simplifies and clarifies several grey areas, and makes it binding on the developer for follow such format, or if deviated publish the same.”

Also Read: Remaining absent for two hearings can lead to disposing off your MahaRERA complaint

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By Varun Singh

Mumbai property market witnessed the registration of over 9839 units in May 2022, up by 80% from a year ago, data from the Inspector General of Registration, Maharashtra. The number of units registered in May 2022 was the highest ever for the month of May, while monthly state revenue collections of Rs 726 crore rose by 166% from a year ago setting a new benchmark.

In May 2021, Mumbai had witnessed a registration of 5,360 units generating Rs 268 crore.

In April 2022 the government saw 11,744 home sales being registered in Mumbai. Via these sales the revenue generated stood at ₹738 crore.

The highest revenue generated this year was in month of March 2022, when the city witnessed a registration of 16,726 units which generated over ₹1,160 crore as stamp duty.

Many homebuyers advanced their purchase by filing in March 2022 while registering them in April and May 2022, effectively saving 1% metro cess that was implemented from April 1, on their deals. Around 37% of property registrations executed in May were filed in March at an effective stamp duty rate of 5%. While 2% of all properties registered in May were filed in April. Remaining 60% of them were filed in May 2022 having an effective stamp duty rate of 6%, showed the Knight Frank India data.

Homebuyers’ focus remained on residential properties priced at Rs 1 crore and below that made up 46% of registrations during the month, while properties above Rs 5 crore contributed 5% of the total deals.

Here is what the real estate experts have to say:
Ram Naik, Director, The Guardians Real Estate Advisory
“The months of April and May witnessing remarkable numbers in property registrations is great news for the Mumbai real estate market. This once again proves that the rise in property prices due to 1% metro cess and increased stamp duty has not affected the real estate market. There is a genuine demand for homes in the MMR market and if the government would have continued certain relaxations, then we would have seen a major bull run in this new financial year as well.”

Manju Yagnik, Vice-Chairperson Nahar Group, and Sr. Vice President, NAREDCO – Maharashtra, “The registration numbers for May 2022 are a clear indication of the upswing in demand witnessed by the real estate sector in Mumbai. Like India’s economy, the real estate industry is also experiencing a V-shaped recovery which could continue to sustain over the next 12 months as well. The recent change in the repo rate has also had an impact on customers immediately closing their purchases before any potential upward revision. I believe we would see far more registrations being recorded in the near future as well, be it in the affordable or even in the luxury segments.

Pritam Chivukula – Co-Founder & Director, Tridhaatu Realty and Treasurer, CREDAI MCHI
“May 2022 has yet again witnessed higher property registrations in Mumbai with the demand continuing to be robust. The strong sales was evidenced as the homebuyers rushed in to buy properties with a fear of further price hike. Factors such as reduction in stamp duty, all time low home loan rates, developers offering discounts and payment flexibility helped in the resurgence for real estate demand in the last two years. We may soon witness an upward revision in the prices due to the rise in interest rates and higher stamp duty prices. We will continue to urge the Government to look into the rising prices in interest of the homebuyers.”

Jitesh Lalwani – President, Homesync Real Estate Advisory
“Mumbai has witnessed an impressive ascent in property deals in the month of May 2022 which is nearly up by 80% from the previous year. Despite the current scenario of steep rise in property prices, the strong sales are proof that there is still demand in the market and reputed developers with a good track record will continue to dominate.”

Also Read: Did April home sales sustain the momentum or did it fail?

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