MahaRERA Guide: Essential Insights on Maharashtra RERA

To improve the situation, Maharashtra Real Estate Regulatory Authority (MahaRERA) was established in 2017 as a regulatory body. It has emerged as one of the most effective authorities in enhancing accountability and trust in the state's realty sector.

Key Provisions of MahaRERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) law aims to make real estate transactions more transparent and protect home buyers' interests.

1. Promoting Transparency

MahaRERA mandates developers to publicly register all new projects with detailed information such as project plans, layouts, government approvals, construction status, completion timelines, etc. This helps buyers easily access facts about projects.

2. Safeguarding Buyers

Builders must keep 70% of buyers' advance payments in separate accounts only to cover land and construction costs. This prevents fund diversion and delays due to a lack of funds. Buyers' right to claim refunds with interest is also strengthened.

3. Expediting Dispute Resolution

Dedicated RERA courts help settle buyer-developer disputes faster through reconciliation or orders. Buyers don't have to wait years, as was the case earlier.

MahaRERA aims to restore buyers' faith and confidence in the real estate sector by enhancing transparency, accountability, and timely dispute resolution.

How MahaRERA Revived Homebuyer Trust

By ushering transparency and accountability in real estate, MahaRERA has revived homebuyers' faith in property investments in Maharashtra. Now, home seekers feel secure investing in RERA-registered properties as the law safeguards their interests.

1. Builder Accountability

Mandatory public project disclosures on RERA websites, like layout plans, approvals, construction status etc., empower investors to evaluate options better. Builders are also subject to strict construction deadlines and fined heavily for delays, minimising possession delays.

2. Investor-Friendly Guarantees

Buyers' advance payments are kept in separate escrow accounts and only used for the project. This prevents fund diversion and delays due to financial mismanagement. Homebuyers also get clear possession guarantees as well as refund provisions with interest.

3. Timely Redressal

Dedicated RERA courts ensure investor grievances are settled faster through mediation and orders. Buyers don't have to endure years of legal battles now. Appellate Tribunals also enable challenging unfavourable rulings.

By institutionalising transparency and accountability mechanisms covering project execution to grievance redressal, MahaRERA has restored investors' confidence and trust in real estate in Maharashtra.

Impact of MahaRERA on the Real Estate Market

MahaRERA has profoundly restored faith in real estate by mandating transparency and institutionalising accountability. Its online portal enables access to objective project details like layouts, approvals and construction status, possession timelines, litigations, encumbrances, etc. empowering property seekers to evaluate options better and make informed decisions. Strict penalties deter delays, while regular inspections ensure quality standards.

Separating 70% of advances into escrow accounts arrests misappropriation risks and builders exploiting regulatory gaps, which troubled buyers earlier. Swift dispute resolution through RERA courts has also rebuilt trust instead of relying on prolonged legal battles.

By proactively enforcing rules that uphold buyer interests via dissemination of project data, deterrence mechanisms, and efficient grievance redressal, MahaRERA has reshaped real estate practices towards reliability and efficiency. This has renewed confidence in Maharashtra's previously unregulated property sector.

Step-by-Step Process for MahaRERA Registration

The online registration process for builders is as follows:

1. Visit MahaRERA website https://maharerait.mahaonline.gov.in/
2. Click "New Promoter Registration" and enter credentials
3. Create your user profile
4. Provide information on previous projects
5. Furnish all details of the new real estate project
6. List details of other parties involved - contractors, etc.
7. Disclose any ongoing litigation related to the project
8. Define the expected completion date
9. Upload the required documents
10. Pay fees and submit an application

After registration, builders can log in to track their status at each step. Similar portal facilities exist for agents and consumers, too.

Latest Developments in MahaRERA

Compulsory Parking Details in Legal Documents

• In April 2024, MahaRERA made it mandatory for builders to mention parking details clearly in all project legal papers.
• This rule aims to stop disputes related to parking spaces for homebuyers.
• Builders' non-compliance may lead to severe penalties.

QR Code in Advertising Materials

• From August 2023, builders must provide a QR code linked to the RERA certificate in ads.
• Helps buyers verify the project's real registration status instantly.
• QR code should be easily scanable and placed near the displayed RERA number.

Mandatory Bank Account Details for Refunds

• In February 2023, real estate promoters must include bank account details in recovery files to local authorities.
• Assists in quicker compensation refunds to buyers when required.
• Eases the financial burden on homebuyers.

Record Housing Project Completions in 2023

• 3,927 housing projects were finished in Maharashtra in 2023, the highest ever.
• Significantly improved from 1,749 completions in 2022.
• Shows the positive work of MahaRERA since 2017 in guiding projects to completion.

Real Estate Project Grading System

• Starting in April 2024, projects will be graded on construction quality, timeline adherence, amenities, buyer satisfaction, etc.
• Gives buyers clear information on the reliability of projects - improves transparency.
• Enables educated home-buying decisions based on project performance scorecards.

New Registrations in FY 2021-22

• 4,332 new projects filed for RERA registration in the 2023-24 fiscal year.
• total number of applications received was about 5,471

Within a short span, MahaRERA has stimulated stability, accountability and trust in real estate projects. This has revived investor interest and growth in the property market through transparency and collaborative governance. Going forward, it will continue to strengthen consumer and investor confidence.

Disclaimer- This article is based on the information publicly available for general use. 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 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.