What Is MahaRERA? Maharashtra Real Estate Regulatory Authority Explained

Do you have plans to purchase your dream home in Mumbai, Pune or any other place in the state of Maharashtra? This means that it will be wise to have an idea about what the term 'MahaRERA' means and the advantages it provides to homebuyers.

'MahaRERA' is the abbreviated form of 'Maharashtra Real Estate Regulatory Authority'. It is a body set up under the act called the 'Real Estate (Regulation and Development) Act, 2016'. It was set up in 2017 to increase transparency and accountability in the real estate sector in Maharashtra. Before the introduction of RERA, buyers would frequently encounter problems, including project delays, lack of project details, and conflicts with builders.

The MahaRERA Act ensures compliance with the central RERA Act provisions in the state of Maharashtra through the mandatory registration of eligible projects and real estate agents and by making project information available to the public. Homebuyers may use the MahaRERA project registration details to verify information related to project approvals, the timeline for completion of projects, and any other information that is disclosed before purchasing a project.

Whether you are a first-time homebuyer or an experienced property investor, compliance with MahaRERA rules, verifying project registration, and examining the disclosed information will go a long way in making an informed purchasing decision.

What Is MahaRERA?

Maharashtra Real Estate Regulatory Authority is commonly known as 'MahaRERA'. This body has been set up in accordance with the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA Act).

It acts as the regulator of the real estate industry in the State of Maharashtra and the Union Territories of Dadra & Nagar Haveli and Daman & Diu.

• MahaRERA operates as the intermediary regulator between the three primary parties:
• Developers
• Real estate brokers
• Homebuyers/investors in commercial property

Requirements that must be met include compulsory registration, having a healthy financial status, public disclosure of information, and a mechanism of dispute resolution.

Why Was MahaRERA Established?

There were certain problems faced by the real estate industry in the state of Maharashtra before the introduction of MahaRERA. These included delays in projects, hidden costs, and non-transparency, among others. MahaRERA was formed in 2017 for the regulation of developers and protection of buyers’ rights.

• Funds diverted elsewhere: The money raised from advance payments on one project was used to acquire land for another project, leading to serious project delays.

• Unclear timelines: Dates of possession noted in marketing brochures varied from actual construction dates.

• Lack of standardised agreements: The agreements were favourable to the builders, with harsh provisions in case of delay in payment by the buyers but lenient in case of delay by the builders.

• No central verified registry: Potential purchasers lacked a single place where they could verify whether or not the land title was clear or the structure was sanctioned by the municipality.

• Reasons for the formation of MahaRERA are as follows: To bring equality, to ensure developers adhere to the timelines, to safeguard the money of consumers, and to restore the confidence of buyers.

Key Objectives and Functions of MahaRERA

MahaRERA intends to increase transparency and accountability in the real estate industry of Maharashtra. Some of its major functions are the following:

• Mandatory Registration & Public Disclosure: This process makes sure that each qualified real estate project and each real estate agent who deals in such projects gets registered and receives a unique number.

• Escrow Account Rule (70/30 Rule): The developer is required to deposit 70% of all monies collected from the buyers into an escrow account. Such monies may only be withdrawn for payment of the land cost and construction cost as certified by engineers, architects, and chartered accountants.

• Standardised Sale Agreements: Implements a standardised form of Agreement for Sale to avoid biased contract terms.

• Timely Grievance Redressal: Uses designated benches and forums of conciliation to facilitate resolution of buyer-builder disputes in the online arena within a specified timeline (usually 60 days).

• Quality Assurance: Makes the builder liable for any defects in the structure or faulty craftsmanship for a period of 5 years from the day of delivery of possession.

Who Needs to Register with MahaRERA?

It is compulsory for eligible real estate developers, agents, and projects to get registered under MahaRERA as per the RERA Act of 2016. The process of registration provides benefits for all concerned.

Real Estate Developers and Promoters

It is compulsory for any builder developing a residential/commercial or composite real estate project in the state of Maharashtra to first get their project registered on the MahaRERA site (maharera.maharashtra.gov.in).

Real Estate Agents

Real estate agents, property brokers, and sales agencies involved in property transactions have to be registered as MahaRERA Registered Real Estate Agents. Brokers who are not registered cannot help in booking properties registered under MahaRERA.

Projects Covered Under MahaRERA

Mandatory Registration: Development projects where the total area of the land to be developed is more than 500 square meters or the number of units to be constructed is more than 8.

Exempted Projects

• Small construction works which cover an area of less than 500 square metres, or projects with less than 8 units.

• Development projects that have already obtained an official Occupancy Certificate (OC) before the implementation of RERA.

• Renovation and repairs to internal units without any changes or reallocation of the units.

Benefits of MahaRERA for Homebuyers and Property Investors

There are many benefits of MahaRERA for the homebuyers and property investors in Maharashtra, like transparency, safeguarding against any delay in the project, and accountability from the developers. Through MahaRERA, one can easily check all the projects and make informed decisions regarding their investments.

How to Check MahaRERA Project Registration Online

Before even paying a token amount or reserving the property, it is very necessary to carry out a MahaRERA project search on the official MahaRERA website. By conducting a MahaRERA project search, home buyers can confirm the registration number of their project along with other details such as the developer of the project, the status of construction, etc.

Step-by-Step Project Verification Process

• Go to the official portal for MahaRERA at maharera.maharashtra.gov.in.

• Go to the “Registration” or “Projects” section, and click on “Registered Projects”.

• Choose the search criteria, which could be Project Name, Promoter Name, or MahaRERA Registration Number.

Type in the details and click "Search"

• Click on the View icon for the project that you want to know about.
• How to Check a MahaRERA Registration Number
• The MahaRERA project registration number is normally formatted as P500000XXXXX.
• If you use this number to search through the portal:
• Active shows that the project complies.
• Lapsed/Revoked means that the developer is not allowed to sell units or raise money.

Details to Verify Before Buying a Property

• Promoter Entity Name: Check that the legal name of the company is correct in the agreement.

• Proposed Date of Completion: Check the date mentioned officially on the portal, which has more precedence than sales offers.

• Sanctioned Plans: Check that floor, plan, and building plans have been approved by local authorities.

• Quarterly Progress Reports (QPR): Check documentation to compare physical progress to funds withdrawn.

• Encumbrance / Legal Litigation Details: Make sure the land has no unresolved conflicts or heavy mortgages.

How to Check MahaRERA-Registered Real Estate Agents

To verify whether the real estate agent is registered with MahaRERA, you can visit the official website of MahaRERA and verify the details of the agent before moving forward. It always proves to be helpful when you deal with a registered real estate agent.

• Go to maharera.maharashtra.gov.in.

• Select "Registration" > "Registered Real Estate Agents".

• Type in the agent’s name or the agent registration number of the MahaRERA starting with "A500000XXXXX".

• Check for validity, the contact details of the agent, and the address registered.

How to File a Complaint with MahaRERA

In case of any violation of the contract terms or provisions by the builder, the buyer can file a complaint online using the MahaRERA portal.

Common Reasons for Filing a Complaint

• Failure to hand over possession by the specified date.
• Refusal to repay advance payment on withdrawal of the project.
• Unauthorised changes to approved plan drawings without the buyer’s permission.
• Claiming payments other than construction milestone payments.
• Building defects or inferior building material.

Documents Required for Complaint Filing

• Agreement for Sale / Allotment Letter.
• Receipts of payment and bank statements evidencing funds received.
• Communication documents (e-mails, correspondence with the builder).
• Project MahaRERA Registration.
• Identity Proof (Aadhaar / PAN).

How to Track a Complaint

• Registration/login on the MahaRERA website.
• Fill in the details in the online complaint form (A/M) and pay the applicable online fee.
• Note the Complaint Reference Number generated.
• Check the date of hearing, counter-affidavits uploaded and orders in your dashboard.

MahaRERA Rules and Responsibilities of Builders

As per the MahaRERA Rules & Regulations, certain legal compliance is to be followed by the builders and developers of Maharashtra state to maintain transparency, project completion, and the safety of homebuyers. The following are some of the MahaRERA guidelines for builders.

• No Unregistered Marketing: Advertisements, hoardings, and social media campaigns cannot be started by promoters without the MahaRERA registration number and website link being present.

• Maximum 10% Booking Advance: Contractors cannot accept anything over 10 per cent of the price of the property as an advance without registering an Agreement for Sale.

• Adherence to Sanctioned Plans: Structural alterations need written permission from at least two-thirds of the allottees of the project.

• Formation of Society: Within 3 months after booking 51% of the total units, promoters are to help form a Co-operative Housing Society (CHS).

What Happens If a Builder Violates MahaRERA Rules?

If the builder does not adhere to the rules and regulations of MahaRERA, then MahaRERA is entitled to penalise them or initiate legal action against those who are not in compliance with the rules. A complaint can also be filed by homebuyers to MahaRERA against a builder.

• Financial Penalties: Up to 10 per cent of the estimated project cost as fines for working without RERA registration.

• Imprisonment: Imprisonment of up to 3 years for severe and recurrent defiance of regulatory directives.

• Project Blacklisting & Registration Revocation: MahaRERA can freeze the bank accounts, deregister, and give the half-finished project to the buyers’ association to construct it.

MahaRERA vs RERA: What Is the Difference?

The RERA stands for Real Estate Regulation and Development Act, 2016, that has been enacted in order to regulate the real estate sector of India, whereas, MahaRERA is the state body of Maharashtra to implement this act. It becomes imperative to know the differences between MahaRERA vs RERA in order to make an informed property investment decision.

Important Things to Check Before Buying a MahaRERA-Registered Property

It is advised that before making an investment in MahaRERA-registered properties, buyers need to do due diligence on the status, credentials of the builder, price structure, and the progress of construction of the property.

• Verify the Registration Number: The number shown in the promotion material should match the portal number.

• Review Land Title & Encumbrances: Ensure ownership is clearly established without any legal title lawsuits.

• Compare Timeline Promises: Check the schedule of the spoken presentation by the contractor against the date when it was completed as per MahaRERA.

• Ensure Pricing is Based on Carpet Area: Ensure that you are not paying for inflated figures and that the carpet area is genuine.

• Check Historical QPR Records: Regular Quarterly Progress Reports show good project management.

Conclusion: Why MahaRERA Verification Matters Before Buying Property

MahaRERA is significant in promoting transparency and accountability in the Maharashtra real estate market. The verification of the registration status of the project, the evaluation of the timeframe for completion, and the verification of the approvals disclosed on the MahaRERA website enable buyers to make sound property investments.

Nonetheless, a registration through MahaRERA is not sufficient to ensure construction standards, possession time frame, or return on investment. Legal due diligence should be undertaken before purchase.

If you need expert guidance while exploring property options, connect with Moneytree Realty, India’s Most Trusted Real Estate Advisor. Get assistance in evaluating suitable properties and taking informed steps towards your real estate investment. Contact us today at +91-9732300007 for expert property consultation.

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