A homebuyer’s guide to RERA Maharashtra

For those interested in purchasing a property from any of Mumbai’s leading real estate developers, understanding the Real Estate (Regulation and Development) Act, 2016—commonly known as RERA—is essential.

RERA was introduced to bring transparency, accountability, and trust to the real estate sector. Whether you're considering aluxury apartment in Byculla or Mulund, knowing how RERA works in Maharashtra (MahaRERA) can give you peace of mind during the home-buying process.

What is RERA?

The Real Estate (Regulation and Development) Act, commonly known as RERA, was implemented in 2016 by the Indian government to bring transparency, accountability, and efficiency to the real estate sector. The act aims to protect homebuyers from delays, unfair practices, and lack of transparency by regulating the activities of developers and agents. For both developers and homebuyers, RERA has proven to be a game-changer, establishing a regulated environment that protects buyers' interests and ensures developers operate within ethical and professional guidelines.

MahaRERA is the state-specific version of RERA for Maharashtra. It is responsible for enforcing RERA provisions in the state and ensuring that developers comply with all regulations before marketing and selling their projects. Piramal Realty, a reputed name in Mumbai’s real estate landscape, ensures that all its projects comply with RERA, providing homebuyers with transparency and legal protection.

Key Objectives of RERA

RERA was introduced with a clear vision to improve the real estate market and restore consumer confidence. Its key objectives are:

1. Protection of Homebuyers: RERA ensures that buyers are safeguarded against unfair practices by developers, bringing in more accountability and transparency to real estate transactions.

2. Promotion of Transparency: Developers are required to disclose critical project information, ensuring buyers are fully informed.

3. Timely Delivery of Projects: By enforcing strict guidelines around project timelines and penalizing delays, RERA helps reduce long project delays that have historically plagued the sector.

4. Streamlined Dispute Resolution: RERA provides a dedicated mechanism for quick dispute resolution, protecting buyers and holding developers accountable.

5. Regulation of Agents: RERA also brings real estate agents under the regulatory fold, ensuring they adhere to ethical standards.

Key Functions of RERA

To achieve its goals, RERA performs several key functions aimed at regulating the real estate sector and safeguarding consumer interests:

1. Mandatory Project Registration

One of RERA’s core functions is making it mandatory for developers to register all projects exceeding 500 square meters or more than eight apartments. Without this registration, developers cannot advertise, market, or sell their projects. This requirement ensures that only legally compliant projects are offered to buyers.

Developers must provide detailed information about the project, such as:

• Land title and ownership
• Project plans and layouts
• Approvals and permissions from relevant authorities
• Project timeline and milestones
• Carpet area (usable area) of apartments
• Financial details, such as how the money collected from buyers will be used

For buyers: The mandatory registration process ensures that buyers can trust that a project is legitimate and follows all legal requirements.

2. Monitoring Project Progress

RERA actively monitors project timelines and financial flows. Developers must periodically update their project status on the respective state RERA portals, including details about construction progress and any delays. If a developer fails to meet the deadlines stated during registration, they are subject to penalties.

For buyers: This provides buyers with an overview of their project’s progress, helping to manage expectations around completion and possession timelines.

3. Ensuring Financial Discipline

One of the most significant issues that RERA addresses is the financial mismanagement that led to delays or incomplete projects. RERA requires developers to deposit 70% of the funds collected from buyers into a designated escrow account. This money can only be used for construction and land-related expenses for the specific project. This prevents developers from diverting funds to other projects or personal uses, ensuring that the project progresses as planned.

For buyers: Financial discipline ensures that your money is being used solely for the development of the project you're investing in, reducing the risk of project delays.

4. Standardizing Carpet Area Definition

Before RERA, there were widespread inconsistencies in how developers calculated the size of an apartment. RERA has standardized the definition of carpet area, which refers to the actual usable area inside the apartment. This eliminates ambiguity and hidden costs associated with super built-up areas that include common spaces such as corridors, lifts, and lobbies.

For buyers: This means buyers know exactly what they are paying for, reducing the possibility of inflated property prices.

5. Resolving Disputes

RERA provides a clear and structured grievance redressal mechanism. If a buyer feels that a developer is violating the terms of their agreement, or not complying with RERA regulations, they can file a complaint with the respective state's RERA authority. RERA ensures that these disputes are resolved quickly, typically within 60 days.

Each state has its own Real Estate Appellate Tribunal where buyers can file complaints, and both developers and agents can be held accountable for any violations.

For buyers: The existence of a dedicated tribunal means that you have a clear and quick route to resolve issues, which has not been the case before RERA.

6. Penalizing Developers for Non-Compliance

RERA has set strict penalties for non-compliance with the act. Developers who fail to adhere to the commitments made during registration (such as delayed possession or discrepancies in the property delivered) are liable to pay penalties, which may include interest payments to buyers or even imprisonment in extreme cases.

For buyers: This ensures that developers are incentivized to stick to their commitments, reducing the risks associated with project delays or poor-quality construction.

7. Regulation of Real Estate Agents

RERA also brings real estate agents under its regulatory framework, requiring them to register with RERA and adhere to ethical practices. This ensures that agents do not misrepresent project details or mislead homebuyers.

For buyers: This regulation reduces fraudulent practices and ensures that agents operate transparently and fairly.

Services Offered by RERA

RERA offers a range of services designed to enhance transparency and build trust between developers and homebuyers. Here are some of the essential services provided:

1. Online Project Registration and Information Portal

Every state RERA authority maintains a dedicated online portal where developers must register their projects. These portals are accessible to the public, allowing buyers to verify a project’s credentials and monitor its progress.

In Maharashtra, for instance, buyers can visit the MahaRERA portal to check the registration details of any Piramal Realty project, ensuring its compliance with the law.

2. Grievance Redressal and Complaint Filing

RERA provides a seamless process for buyers to lodge complaints if they experience any issues with their property purchase, such as delays in possession or discrepancies in the property’s features. The complaints can be filed online on the RERA portal, and the authority is required to address the grievance within a defined time frame.

3. Dispute Resolution Mechanism

If complaints escalate, RERA also facilitates a dispute resolution mechanism via Real Estate Appellate Tribunals. Buyers who are dissatisfied with the resolution provided by the RERA authority can approach these tribunals for further legal action.

4. Access to Project Progress and Developer Updates

Through the state RERA portals, buyers can track the progress of registered projects. Developers are required to provide regular updates, allowing buyers to stay informed on whether the project is on track.

Benefits of RERA for Piramal Realty Homebuyers

Piramal Realty is known for its commitment to delivering luxury homes that combine modern amenities with architectural excellence. As a RERA-compliant developer, it ensures transparency, quality, and timely delivery of its projects. Here’s how homebuyers benefit from Piramal Realty’s RERA compliance:

1. Increased Transparency: Buyers are fully informed about the project, from land titles to project timelines, helping them make more confident decisions.

2. Timely Possession: The commitment to timely delivery ensures that buyers are not left waiting endlessly for possession of their dream homes.

3. Fair Pricing: With the clear definition of carpet area and regulations against hidden charges, buyers can trust that they are paying a fair price for the property.

4. Legal Safeguards: RERA provides buyers with legal recourse in case of disputes, ensuring that they are not left without protection.

MahaRERA Registration Process, Required Documents, and Complaint Filing Guide

MahaRERA (Maharashtra Real Estate Regulatory Authority) plays a crucial role in regulating the real estate sector in Maharashtra, ensuring that property buyers and developers follow the rules set by the Real Estate (Regulation and Development) Act (RERA). For developers, agents, and homebuyers, understanding the MahaRERA registration process, the documents required, and how to file a complaint is essential for ensuring transparency, protecting rights, and facilitating smooth transactions.

MahaRERA Registration Process

Whether you are a developer or a real estate agent, registration with MahaRERA is mandatory before you can market, sell, or promote any real estate project or offer services in Maharashtra. Here’s a step-by-step guide to the registration process:

1. Visit the MahaRERA Website

Go to the official MahaRERA portal: https://maharera.mahaonline.gov.in/.

2. Create an Account

If you are a developer or real estate agent, you need to create an account on the MahaRERA portal by providing basic personal details such as your name, email address, and contact number.

3. Select the Type of Registration

Choose whether you are registering as:

• A Promoter (Developer) for a real estate project, or
• A Real Estate Agent

4. Fill Out the Registration Form

Based on your selection (promoter or agent), you will be prompted to fill out an online form that includes detailed information about the project, ownership, financials, and legal documents.

5. Submit the Required Documents

Along with the online form, you will need to upload specific documents. Below is the checklist of required documents for developers (promoters) and real estate agents.

6. Pay the Registration Fees

The registration process requires the payment of a fee based on the size and type of the project. The fee can be paid online via the MahaRERA portal.

7. Receive the RERA Registration Number

Once all information and documents are submitted, and the fee is paid, MahaRERA will review the application. Upon successful verification, you will receive a RERA registration number for the project. This number is crucial and must be used in all marketing and sales communications related to the project.

Document Checklist for MahaRERA Registration

Here is a detailed checklist of documents required to register a real estate project or as a real estate agent with MahaRERA.

1. For Developers (Promoters):

Promoters are required to submit a range of documents during the MahaRERA registration process to ensure transparency and legal compliance. Below is the list of mandatory documents:

• Title Deed: Proof of ownership of the land on which the project is being developed.
• Project Layout and Building Plan: Approved layout plan and building design by the local planning authority.
• Encumbrance Certificate: A certificate showing that the property is free from any legal liabilities or encumbrances.
• Commencement Certificate: Issued by the local authority, confirming the commencement of construction.
• Development Agreement (if applicable): If the developer does not own the land and has entered into a joint development agreement with the landowner.
• Project Location Details: A detailed description of the project’s location, including latitude and longitude.
• Details of Past Projects (if any): Information about any prior real estate projects completed by the developer.
• Project Financials: Details of the project’s estimated cost and the sources of funding. Developers are also required to submit the Annual Report of the company.
• Details of Contractors, Architects, and Engineers: Information about the project team responsible for construction, design, and oversight.
• Building Permits and Approvals: Permissions from relevant authorities for water supply, electricity, sewage, and other utilities.
• Proforma Sale Agreement: A copy of the sale agreement that will be provided to the buyers.
• Bank Account Details: Proof of the escrow account where 70% of the project funds will be deposited as per RERA norms.

2. For Real Estate Agents:

Real estate agents are also required to register with MahaRERA and must submit the following documents:

• PAN Card: A copy of the agent’s PAN card.
• Identity and Address Proof: Passport, Aadhaar card, or any other government-approved ID.
• Business Registration Document: Proof of the real estate agency’s registration, such as a partnership deed, Memorandum of Association (MoA), or Articles of Association (AoA), depending on the type of business structure.
• Photograph of the Agent: A passport-size photograph of the real estate agent.
• Income Tax Returns (ITR): Proof of ITR filings for the last three years (if applicable).

Information Required for MahaRERA Registration

When filling out the registration form, developers and agents are required to provide comprehensive project details. Below is the information typically required:

For Developers:

• Project Name: The name of the project to be registered.
• Location Details: Full address, including geographic coordinates (latitude and longitude).
• Carpet Area of Each Apartment: Details about the carpet area for each apartment/unit.
• Estimated Project Completion Time: by which the project is expected to be completed.
• Project Financials: The total project cost, and a breakdown of how funds will be raised and utilized.
• Ongoing Litigation (if any): Information about any ongoing legal disputes related to the project or land.

For Real Estate Agents:

• Agent Details: Name, address, contact information, and photograph of the real estate agent.
• Business Information: Registered business name, office address, and type of business (proprietorship, partnership, etc.).
• Services Offered: A description of the services offered by the agent.

Filing a Complaint with MahaRERA

MahaRERA provides a robust grievance redressal mechanism for homebuyers, developers, and agents. If any party feels aggrieved by the actions or decisions of another, they can file a complaint with the authority. Here’s how to go about it:

1. Visit the MahaRERA Website
Go to the MahaRERA portal: https://maharera.mahaonline.gov.in/ and navigate to the "Complaints" section.

2. Choose the Complaint Type
You can file a complaint against a developer, real estate agent, or other stakeholders involved in the real estate transaction.

3. Fill Out the Complaint Form
Provide details about your complaint, such as:

• The name and registration number of the developer/agent
• A brief description of the complaint, including any relevant dates and project information
• Supporting documents like receipts, agreements, and emails

4. Pay the Complaint Fee
A nominal fee must be paid to file a complaint with MahaRERA. The fee can be paid online through the portal.

5. Submit the Complaint
Once all information is entered and the fee is paid, submit the complaint. You will receive a confirmation and a case reference number.

6. Dispute Resolution
MahaRERA is obligated to address and resolve complaints within 60 days. Both parties may be called for a hearing, and the authority will pass a judgment, which could include compensation or specific actions by the developer or agent.

Conclusion

MahaRERA plays a vital role in ensuring transparency and accountability in Maharashtra's real estate sector. By following the registration process and submitting the required documents, developers and agents can ensure their projects and services comply with the law. By enforcing transparency, financial discipline, and timely project delivery, RERA significantly reduces the risks associated with property investments.The various services and regulatory functions offered by RERA provide homebuyers with a clear legal framework to address their grievances and hold developers accountable.

For Piramal Realty and other development homebuyers, RERA and MahaRERA offer enhanced security, transparency, and peace of mind during the home-buying process. Before making your investment, take full advantage of the protections offered by RERA by verifying project details on the MahaRERA portal and ensuring you are aware of your rights as a homebuyer. With RERA’s robust legal framework, you can confidently invest in a home that is built to last, compliant with regulations, and protected under the law.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.