The real estate regulatory authority (RERA) regulates and governs real estate sectors and their activities.
The real estate regulatory authority of respective states and union territories was established by the introduction of the Real Estate (regulation and development) Act, 2016.
Real estate regulatory authority works in buyers’ interest and protects them from the unfair practices prevalent in the market.
RERA legislation regulates the conduct of builders and their agents by registering their intent to purchase and seeks a timely report on the development of the project from the developer. The act protects buyers from bearing unfair losses due to the delay by the builder in project development.
In Maharashtra, MahaRERA is the regulatory authority of the construction sector and protects the interests of the buyers.
Table of Contents
What is MahaRERA?
MahaRERA denotes Maharashtra real estate regulatory authority, and this authority works in the interest of consumers and governs the real estate sector of Maharashtra.
The regulatory body protects prospective buyers in Maharashtra from exploitation by builders in the real estate sector.
Before commencement of the project, every real estate project should be registered with the real estate regulatory authority in Maharashtra.
MahaRERA is governed by the Real Estate (regulation and development) Act, 2016, and Maharashtra Real Estate Regulatory Authority (general) regulations, 2017.
Features of MahaRERA
MahaRERA has the following features:
- MahaRERA grants registration to the projects in Maharashtra
- MahaRERA exercises adjudicatory powers and deals with the complaints related to registered and unregistered real estate projects. Buyers can file a complaint against the malpractices of promoters, agents, or developers
- MahaRERA ensures the project’s credibility by providing information about it to the buyers. It provides information about whether the project is registered with RERA or not and information related to the date of completion of the project. Thus, it facilitates prospective buyers and financers to obtain information
- MahaRERA works in buyers’ interest and suggests the buyers move toward buyer-friendly projects. It prohibits malpractices to defraud buyers and provides compensation to the allottees in case of a delay in project completion.
- MahaRERA regulates the project developers and promoters and mandates all real estate projects to be registered with RERA
- MahaRERA levies punishment in the case of a non-registered project. A maximum penalty of up to 10% of the amount estimated as the cost of the project or imprisonment of up to three years or both is imposed
- MahaRERA works for dispute settlement in a prompt manner. Early disposal of complaints by MahaRERA can lead to a sense of protection among consumers
- The body introduces flexibility in the real estate sector of Maharashtra. Buyers can flexibly opt for the projects according to their preferred date of possession.
Benefits of MahaRERA
The following benefits are sought from Maharashtra real estate regulatory authority:
The RERA Act is a milestone in improving transparency in the real estate sector. Numerous instances of non-factual advertisements, fraud by promoters and developers, and cheating have been reported.
The RERA Act was proposed to protect buyers’ interests by providing them with information on real estate properties.
- The developer has to mandatorily register the project with RERA and report the project’s development on a timely basis. If a developer fails to do so, then he is penalised.
MahaRERA acts to regulate the conduct of promoters and developers and checks the use of funds by the developer.
It ensures that the developers do not channel the funds from buyers or investors in the name of one project and channel it to other projects. Such non-compliance would lead to penalties and, in serious cases, includes imprisonment.
- Developers are accountable to the people. The developers must deposit 70% of all funds toward a particular project into a single account. These funds are to be used only for construction or land cost. Developers must regularly report the project’s development to the regulatory authorities.
- The registration of the real estate projects with MahaRERA increases the credibility of the project. The project’s approval in Maharashtra has resulted in consumers’ trust in the project. The project is more secure so that buyers do not encounter losses just because of delay in project completion.
MahaRERA registration process
The procedure of registration on the MahaRERA website is as follows:
- Visit https://maharera.mahaonline.gov.in.
- Click on the new registration link under the login button
- Select the type of user you want to opt for from the new window from the following windows:
- Real estate agent
- Fill up all the required information
- Complete email verification and login into the account
- Submit the required documents in the specified form
Registration of real estate projects
Promoters cannot advertise unregistered real estate projects. They cannot report the names of beneficiaries, indulge in the sale or transfer of property, or invite them to purchase a plot of property, flat, or building.
All promoters must obtain a construction certificate or an occupancy certificate following the approved plan in ongoing developments and register their real estate with their real estate regulatory authority
Registration of a real estate agent
In Maharashtra, real estate agents must register themselves under MahaRERA. Only registered agents can buy or sell apartments/flats/plots in the project. When registered, they are allowed to mediate them for selling/purchasing on behalf of another individual/persons.
If an agent does not comply with the regulation, he is penalised Rs. 10,000 per day.
Cancellation of registration
MahaRERA is authorised to cancel or revoke the registration of a real estate project by taking ‘suo moto’ cognisance within 30 days of serving notice to the promoter.
The authority has the discretion to cancel real estate registration if the promoter’s reply is not satisfactory
The registration of the project can be cancelled on the following grounds:
- Due to promoters defaulting under RERA
- Due to promoters violating the terms of the approval granted by the authority
- Due to promoters engaging in unfair practices or irregularities, that is, misrepresentation or publication of any advertisement/prospects of services not intended to be offered
- Due to promoters engaging in fraudulent practices
Is RERA approval mandatory?
Yes, every real estate project in a state should be mandatorily approved by RERA. Real estate projects approved by RERA enhance the project’s credibility and render the purchase more secure and trustworthy to the buyer.
Approval is only granted when the project is registered with the RERA of the respective state.
The registration approved by the authority is valid for a period agreed by the promoter to complete the project as prescribed in the affidavit submitted along with the application form.
The benefits of a RERA approved project are as follows:
- Projects approved by RERA are secure and credible
- RERA-approved projects protect the buyers from any form of loss in the future
- Projects approved by RERA prohibit the builder, promoters, or agents from indulging in any malpractices or gaining an unfair advantage.
A non-approved RERA project has the following disadvantages:
- Non-registered and non-approved RERA projects are illegal
- Unpredicted difficulties may arise shortly
- Seeking redressal on a non-approved property can be difficult
- Promoters are liable to pay the penalty for non-registering the property or may face imprisonment.
How to find project details on the MahaRERA website?
The step-by-step procedure to seek project details on the MahaRERA website is as follows:
Step 1:- Go to https://maharera.mahaonline.gov.in/
Step 2:- Go to the ‘Registration’ tab, and click on ‘Registered Projects’
Step 3:- Under the sub-heading ‘Select User Type’, click on ‘Registered Projects’
Step 4:- You can search the details of a project either by its name, the name of its promoter, or its registration number
Step 5:- To know the certificate number of a project, you can click on the ‘View all projects on map’ option on the top right-hand side of the page
Step 6:- Explore the map and click on the concerned project to get its certificate number
Step 7:- When you type the name or certificate number of the project and click on search, the project and a few details appear in search results
Step 8:- By clicking on ‘View’, you will see all project details like address, project type, current status, and proposed completion date by the builder
Challenges ahead of MahaRERA
MahaRERA is working to protect buyers’ interest. However, many challenges remain in the path ahead.
With the jurisdiction of MahaRERA extended to Daman and Diu, implementing the objectives and monitoring the project’s development is the first challenge of the Maharashtra Real Estate Regulatory Authority.
The other challenge in implementing the objectives is that it does not contain standard pricing requirements on its website.
Due to its wide jurisdiction, curbing the malpractices of the developers, promoters, and agents remains challenging.
MahaRERA is the only regulatory authority entrusted with governing and regulating the conduct of real estate developers, promoters, and agents.
In Maharashtra, the real estate sector is governed by the Real Estate (regulation and development) Act, 2016, and Maharashtra Real Estate Regulatory Authority (general) Regulations, 2017, which provide guidelines for the establishment of the state’s real estate regulatory authority and its functioning ensuring the interest of various stakeholders.
Registration to MahaRERA is mandatory because it maintains transparency to prevent any fraud in the real estate sector.
Where is the provision for establishing real estate regulatory authority prescribed?
The provision for establishing and incorporating real estate regulatory authority is prescribed under Section 20 of the Real Estate (regulation and development) Act, 2016.
What is Form 7 as per regulation 30 of the Maharashtra real estate regulatory authority (general) regulations, 2017?
Form 7 is a form submitted by a person and the required fee to the RERA to inspect the project documents.
Is an allottee entitled to compensation if the promoter fails to complete the project within the specified time?
The promoter has to return the amount and compensate the allottee if any loss is caused to the allottee, as per Section 18 of the RERA Act, 2016.
Where are the rights and duties of the allottees prescribed under the RERA Act, 2016?
Section 19 of the Real Estate (regulation and development) Act, 2016 delineates the rights and duties of allottees.