Maha RERA stands for Maharashtra Real Estate Regulatory Authority. It is a real estate act of 2016 which came under the regulation and development section. It was sanctioned and implemented by the Maharashtra State Government on the 1st of May, 2017. This act regularized the real estate sector by contributing to the policy reforms initiated by the Central Government. This act puts into place every right and format that is directed both the consumer and the builder alike. It has cut through major real estate scams that were predominant in the urban areas. However, it has also regularized the transactions in Maharashtra’s rural areas. These policies have therefore taken all kinds of projects into consideration, like a commercial, residential, redevelopment, mixed development, and plotting schemes. Now, the RERA act when joined with the provisions of the GST Act, has brought the arch of real estate under correct beams. It has become beneficial for both the builders and the buyers. The provisions that the RERA act lays down are mentioned in details below.

  • For the developers to register with Maharashtra Real Estate Regulatory Authority (RERA), they will have to produce the details of their scope of work of the past 5 years, property sales, estimated project cost, full disclosure about the construction project, payment schedules and material specifications, etc.
  • All the entities that develop real estate projects for sale whether Public real estate promoters or private real estate promoters, all are covered under RERA.
  • Real Estate projects with, the land area of more than 500 sq. mt. or more than 8 units must be registered under RERA.
  • All the advertisements for real estate projects, including the prospectus, emails, online/ offline ads, publicity in any form, must carry the MahaRERA registration number of the project.
  • Developers would need to give compensation to the allottee in a case of a certain breach in the commitment like completion timeline and inferior delivery.
  • If any promoter contravenes the provisions as per the act, they are liable to pay 10000 Rs per day and; the penalty amounting up to 10 % of the estimated project cost, if a developer fails to register.
  • Promoters would need to provide a list of real estate agents who would be associated with the project while registering the project.
  • As per section 29 of the act, the complaints should be resolved within 60 days of filing the same.
  • Legal entities like co-operative society, company, association, or Federation; has to be registered within three months from the date on which fifty-one percent of the total number of purchasers, have booked their apartment.
  • The promoter has to register the project before starting any type of advertising for the project. Online applications for registration are accepted from May 01, 2017 on Maha RERA portal.
  • There should be an escrow account for every registered project or registered phase of a project, in accordance with the provisions of the Act.
  • Every Real Estate Agent who intends to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a registered real estate project being sold by the promoter in any planning area in Maharashtra, shall have to apply for registration to Maharashtra Real Estate Regulatory Authority (Maha RERA).
  • Digital media listings by builders/agents need not get approval from Maha RERA, but the project being advertised must be registered with Maha RERA.

Therefore, a project registered under the RERA act is the one you can trust and invest in. It is always good to be aware of these things to be able to make an informed decision. Do write to us in the comments below if you have any query.