The Maharashtra Real Estate Regulatory Authority, commonly known as MahaRERA, stands as a cornerstone in the governance and oversight of the real estate sector within the vibrant state of Maharashtra, India. Established to restore trust and confidence among homebuyers and to bring about much-needed transparency and order in the real estate industry, MahaRERA has assumed a pivotal role in shaping the real estate landscape of the state.

At the heart of MahaRERA's mission lies its commitment to the registration of real estate projects and real estate agents. This multifaceted undertaking serves as a critical pillar in achieving the overarching goals of transparency, accountability, and safeguarding the interests of both aspiring and seasoned homeowners.

In this article, we will embark on an informative journey, shedding light on the indispensable procedures and meticulous documentation requirements for project registration under MahaRERA. By comprehending these vital aspects, developers, real estate professionals, and prospective buyers can gain a deeper insight into the regulatory framework that underpins the real estate market in Maharashtra. Furthermore, this knowledge empowers stakeholders to navigate the intricate processes involved in real estate transactions with confidence and clarity.

Project Registration Requirements

Mandatory Registration Under MahaRERA

MahaRERA, as a regulatory body, enforces strict regulations to ensure transparency and accountability in the real estate sector. One of the fundamental requirements it imposes is that no promoter can engage in advertising, marketing, selling, or offering any plot, apartment, or building within a real estate project without prior registration with the Real Estate Regulatory Authority. This essential step applies to all projects located within planning areas of Maharashtra.

Exemptions from Registration Requirements

While the mandatory registration rule applies to most real estate projects, there are certain exemptions in place to accommodate specific scenarios:

• Small Projects: Projects with a land area not exceeding 500 square meters or those comprising fewer than eight apartments, across all phases, are exempt from the registration requirement. It's worth noting that the appropriate government authority has the discretion to reduce these thresholds if deemed necessary to regulate smaller developments effectively.
• Projects with Completion Certificates: Projects that have obtained a completion certificate prior to the commencement of the MahaRERA Act are exempt from the registration process. Completion certificates are issued by the local municipal authority or relevant governing body upon the successful completion of a project.
• Renovation, Repair, or Re-development Projects: Projects involving only renovation, repair, or re-development that do not involve marketing, advertising, selling, or the allocation of new units are also exempt from registration. These projects primarily focus on improving existing structures and do not create new inventory in the real estate market.

Phased Development and Separate Registrations

In situations where a real estate project is planned and executed in multiple phases, each phase is treated as an independent project by MahaRERA. Promoters are required to obtain separate registrations for each phase of the development. This approach ensures that each phase complies with regulatory standards and provides clarity to both developers and homebuyers regarding the status and obligations associated with each part of the project.

MahaRERA's project registration requirements are a cornerstone of its efforts to instill transparency, protect the interests of homebuyers, and bring order to the real estate sector in Maharashtra. By understanding the nuances of these requirements and exemptions, stakeholders in the real estate industry can navigate the regulatory landscape more effectively, contributing to a more accountable and reliable real estate market.

Documentation Guidelines

To register a real estate project with MahaRERA, promoters must submit a comprehensive set of documents as part of their application. These documents include:

• Promoter's Details: This section should include the promoter's enterprise details, including its name, registered address, and type of enterprise (e.g., proprietorship, society, partnership, company). The application should also contain particulars of registration and photographs of the promoter.
• Project History: Promoters must provide a brief history of their projects launched in the past five years, including their current status, any delays in completion, and details of cases pending. This section should also include information on the type of land and pending payments.
• Approvals and Certificates: Promoters need to furnish authenticated copies of approvals and commencement certificates obtained from the competent authority in accordance with applicable laws for the proposed project. For phased projects, certificates for each phase are required.
• Project Plans: Submission of the sanctioned plan, layout plan, and specifications of the proposed project or phase is essential. These plans should be as sanctioned by the competent authority.
• Development Plans: Promoters must include the plan of development works to be executed in the project, including provisions for fire fighting, drinking water, emergency evacuation services, and the use of renewable energy.
• Location Details: Clear demarcation of the project's land, including boundaries and latitude and longitude coordinates, must be provided.
• Allotment and Sale Documents: Include proforma allotment letters, sale agreements, and conveyance deeds proposed to be signed with the allottees.
• Apartment and Garage Details: Specify the number, type, and carpet area of apartments for sale, along with the area of exclusive balconies, verandahs, and open terraces. Provide information about the number and size of garages for sale.
• Agent and Contractor Information: Include the names and addresses of real estate agents, contractors, architects, structural engineers, and other individuals or entities involved in the project's development.
• Legal Title and Encumbrances: Promoters must declare and provide legal documents proving their title to the land. If the land is owned by another party, details of encumbrances and rights must be included.
• Fund Management: Submit a declaration, supported by an affidavit, detailing how funds will be managed. This includes the allocation of 70% of funds collected from allottees in a separate account for construction and land costs. Withdrawals from this account must be certified by professionals in engineering, architecture, and chartered accountancy.
• Bank Accounts: Specify the scheduled bank where the separate account will be maintained, as defined by the Reserve Bank of India Act, 1934.
• Timely Approvals: Promoters must commit to obtaining all necessary approvals from competent authorities within specified timeframes.
• Other Documents: Provide any additional documents and information as prescribed by MahaRERA.

Application Procedure

Promoters should make an application to MahaRERA for project registration using the prescribed form, accompanied by the required documents. The Authority aims to streamline the application process by establishing a web-based online system for project registration within a year of its establishment.

Registration Grant and Validity

Upon receiving the application, MahaRERA will review it and take action within 30 days. They can either grant registration, provide a registration number and login details to the promoter, or reject the application with written reasons. Rejected applications require an opportunity for the promoter to be heard.

If the Authority fails to act within the stipulated 30 days, the project is deemed registered, and the promoter will receive the necessary registration details within seven days after the 30-day period expires.

The registration granted remains valid for the duration declared by the promoter for project completion, as specified in the application.

Extension of Registration

In cases of force majeure, the promoter can apply for an extension of the registration. The Authority, based on reasonable circumstances and after recording reasons in writing, may also extend the registration for up to one year. This extension can be sought by the promoter without default on their part and based on the specific circumstances of the project.

Revocation of Registration

The Authority holds the power to revoke a project's registration if it finds:

• Default in complying with the MahaRERA Act, rules, or regulations.
• Violation of terms or conditions set by competent authorities.
• Involvement in unfair practices or irregularities, including fraudulent practices.
• Misrepresentation or fraud in securing the registration.
• Before revoking registration, the Authority provides a 30-day notice to the promoter, stating the grounds for revocation and allowing the promoter to present their case. In cases where revocation is not warranted, the Authority may impose additional terms and conditions to protect the interests of allottees.

Consequences of Revocation

Upon revocation of registration, the Authority takes several actions, including debarring the promoter from accessing its website, listing the promoter as a defaulter, and freezing the project bank account. The Authority may also issue additional directions as necessary to protect the interests of allottees or the public.

Lapse or Revocation of Registration

In cases where registration lapses or is revoked, the Authority may consult with the appropriate government to determine further actions. This may involve the completion of remaining development works by competent authorities the association of allottees, or other measures deemed fit by the Authority. The association of allottees is given the first right of refusal for carrying out the remaining development works.

Real Estate Agent Registration

In addition to project registration, MahaRERA also regulates real estate agents operating in the state. Real estate agents must obtain registration from the Authority to facilitate the sale or purchase of properties in registered real estate projects. The registration process for real estate agents involves the submission of an application, prescribed fees, and necessary documents.

Agent Responsibilities

Registered real estate agents must adhere to several responsibilities, including:

• Registration Area: Real estate agents must limit their activities to the planning areas where registered real estate projects are located. They cannot facilitate the sale or purchase of properties in unregistered projects within these planning areas.
• Record Keeping: Agents are required to maintain and preserve accurate books of account, records, and documents as prescribed by MahaRERA. This ensures transparency in their operations.
• Fair Trade Practices: Agents must avoid unfair trade practices, which include making false statements, misrepresentations, or misleading representations about the services they offer. They should not promote services that are not intended to be provided.
• Providing Information: Real estate agents are obligated to provide homebuyers with all the necessary information and documents they are entitled to at the time of booking a property. This contains information about the project and the property.
• Other Functions: Agents must discharge any other functions as prescribed by MahaRERA to ensure transparency, fairness, and accountability in their dealings.

Benefits for Homebuyers

The implementation of MahaRERA's project registration rules and documentation guidelines brings forth a plethora of advantages for homebuyers, enhancing their confidence and security in the real estate market. Here, we delve deeper into how homebuyers benefit from these regulations:

• Enhanced Transparency: Project registration mandates comprehensive disclosure of project details. Homebuyers gain access to vital information about the project's approvals, progress, and the developer's track record. This transparency ensures that buyers are well-informed before making one of the most significant financial decisions of their lives.
• Assured Accountability: Project registration imposes strict timelines and financial management standards on developers. This accountability ensures that projects are completed as promised, reducing the risk of delayed possession or cost overruns. In case of deviations, homebuyers have a legal foundation to seek remedies.
• Protection from Unscrupulous Practices: MahaRERA's regulations are designed to safeguard homebuyers from deceptive practices prevalent in the real estate industry. Developers and agents are prohibited from making false promises or indulging in fraudulent activities. This protection extends to misleading advertisements, ensuring that homebuyers are not lured into investments based on false claims.
• Completion of Projects: In instances where a project's registration is revoked or lapses due to non-compliance, MahaRERA intervenes to ensure that the remaining development works are carried out. This provision acts as a safety net for homebuyers who have invested their hard-earned money in such projects. They can rest assured that their investments are not left in limbo.
• First Right of Refusal: The provision granting the association of allottees the first right of refusal for completing remaining development works empowers homebuyers. They have a say in the project's completion and can take charge of the process to safeguard their interests.
• Access to Crucial Information: Homebuyers are granted the right to access all relevant project information and documents. This access empowers them to make informed decisions, scrutinize project plans, and understand the legalities involved, thereby reducing the chances of being misled.
• Fair Dealings with Real Estate Agents: Registered real estate agents are bound by the principles of fair trade practices. They cannot engage in misleading or deceptive tactics when facilitating property transactions. This regulatory framework ensures that homebuyers are represented by ethical and professional agents.
• Legal Recourse: In the unfortunate event that homebuyers encounter issues with developers or agents related to a registered project, they have legal avenues for seeking redressal through MahaRERA. This adds an extra layer of security, as homebuyers know that their rights are upheld by the law.
• Financial Security: The requirement for developers to deposit funds collected from homebuyers in a separate account, with strict monitoring of fund utilization, offers financial security. This practice ensures that the investments made by homebuyers are primarily used for project construction and land costs, reducing the risk of misallocation.
• Market Credibility: MahaRERA's regulations have bolstered the credibility of the real estate market in Maharashtra. As a result, homebuyers are more willing to invest with confidence, knowing that there are safeguards in place to protect their interests.

In essence, MahaRERA's project registration rules and accompanying regulations have transformed the real estate landscape in Maharashtra into a safer and more transparent environment for homebuyers. These regulations provide homebuyers with not only information but also legal protection and avenues for redressal in the event of disputes. Consequently, these measures have instilled trust and confidence in the real estate market, making it more attractive for prospective buyers.