The Indian real estate sector has witnessed a remarkable transformation in recent years, primarily attributed to the introduction of the Real Estate (Regulation and Development) Act, of 2016, commonly known as RERA. This landmark legislation, which came into effect on May 1, 2017, has had a profound impact on the real estate landscape across the country, ushering in greater transparency, accountability, and consumer protection.

At the state level, various Indian states and union territories established their own regulatory authorities to oversee and implement the provisions of RERA. One of the most prominent among these is the Maharashtra Real Estate Regulatory Authority, or MahaRERA, established by the Government of Maharashtra. MahaRERA plays a pivotal role in shaping the real estate sector within the state of Maharashtra, which is known for its thriving real estate market, including the bustling metropolis of Mumbai.

MahaRERA's significance cannot be overstated, as it serves as a crucial bridge between the real estate industry stakeholders, including builders, developers, and homebuyers. Its primary objective is to ensure transparency, fairness, and efficiency in real estate transactions, thereby instilling confidence in buyers and investors alike.

Now, let's delve deeper into the critical components of the Real Estate (Regulation and Development) Act, 2016, and the role that MahaRERA plays in implementing and enforcing these provisions in the state of Maharashtra.

The Real Estate Regulatory Authority (RERA) and its Appellate Tribunal play crucial roles in regulating the real estate sector in India, including Maharashtra, where MahaRERA operates. Here's an expanded overview of their functions and significance:

Guardians of the Real Estate Sector:

RERA, including MahaRERA in Maharashtra, serves as the guardian of the real estate sector. It aims to create a fair and transparent environment for all stakeholders involved, which includes property buyers, developers, and real estate agents. This regulatory body is designed to instill trust and confidence in the real estate market.

Ensuring Promoter Disclosures:

One of the primary responsibilities of MahaRERA is to ensure that property developers provide accurate and comprehensive information about their projects. This requirement is essential to prevent misleading marketing and advertising practices that could potentially harm property buyers.

Registering Real Estate Projects:

Developers are mandated to register their real estate projects with MahaRERA before promoting, marketing, or selling any properties within them. This registration process involves providing detailed project information, financial details, and timelines, which enhances transparency and accountability.

Registering Real Estate Agents:

Real estate agents must also register with MahaRERA before they can facilitate property transactions. Registration helps in weeding out unscrupulous agents and ensures that only qualified and licensed professionals operate in the market.

Handling Complaints:

MahaRERA establishes mechanisms to swiftly address disputes and grievances related to registered real estate projects. This is a crucial aspect of consumer protection, as it provides property buyers with a platform to seek redressal in case of disputes with developers or agents.

Providing Recommendations:

MahaRERA also has an advisory role where it provides recommendations and guidance to the government on various matters pertaining to the development and promotion of the real estate sector. This can include suggestions for policy improvements and regulatory changes that can benefit the industry and its stakeholders.

Appellate Tribunal:

In addition to MahaRERA, an Appellate Tribunal is in place to review appeals against decisions, directions, or orders issued by MahaRERA. This appellate mechanism ensures that there is a fair and just process for all parties involved. It allows for an independent review of MahaRERA's decisions, providing a safeguard against potential errors or biases.

MahaRERA and its Appellate Tribunal together play a pivotal role in regulating the real estate sector in Maharashtra. Their functions encompass ensuring transparency, protecting the interests of property buyers, promoting accountability among developers and agents, and providing a mechanism for resolving disputes, all of which contribute to the entire well-being of real estate.

Real Estate Projects Registration

The registration of real estate projects is a fundamental requirement under the RERA Act. Virtually all commercial and residential projects are obligated to register with the respective state's RERA authority, including MahaRERA in Maharashtra.

Except for these:

• Small Projects: Projects with land areas under 500 square meters or those comprising fewer than eight apartments are exempt from registration. This exclusion is aimed at reducing the regulatory burden on smaller developers.
• Completed Projects: Projects that have already received a completion certificate from the relevant authorities are not required to register under RERA since they are not under construction.
• Renovation, Repair, or Redevelopment: Projects that involve only renovation, repair, or redevelopment without the sale of new units are also not covered by the registration requirement.

It's crucial for developers to understand that failure to register a project under the Act can result in severe penalties. Even ongoing projects where all buildings do not possess a completion certificate must be registered, specifically for the non-certified phase of the project. This ensures that consumers have access to accurate project information and safeguards their interests.

Real Estate Agents Registration

Real estate agents play a pivotal role in property transactions, and the RERA Act mandates their registration with MahaRERA or the respective state's RERA authority. Unregistered agents are prohibited from representing buyers or sellers in real estate transactions, and non-compliance with this requirement carries substantial penalties.

Agent registration serves several purposes:

• Professionalism: It ensures that only qualified and licensed individuals or entities operate in the real estate sector, enhancing professionalism and competence.
• Consumer Protection: Registered agents are held to certain ethical and legal standards, providing consumers with a level of protection and confidence when engaging in property transactions.
• Transparency: Agent registration contributes to transparency in the industry by creating a record of authorized professionals and their activities.

Filing Complaints

Individuals who encounter issues with registered real estate projects have the right to file complaints with MahaRERA or the designated adjudicating officer. MahaRERA has established a dedicated mechanism for this purpose, making it relatively straightforward for aggrieved parties to seek resolution of their grievances.

The complaint resolution process typically involves hearings and investigations to determine the validity of the complaint. MahaRERA aims to provide a swift and impartial resolution to ensure that the interests of all parties are protected.

If a person is dissatisfied with MahaRERA's decision, they have the option to file an appeal with the Appellate Tribunal, which ensures a fair and impartial review of the case. This appellate process adds an additional layer of accountability to the regulatory framework, assuring stakeholders that their concerns will be thoroughly examined and adjudicated upon.

Financial Discipline

• Advance Payments: Under RERA, developers are restricted from accepting more than 10 percent of the property's cost as an advance payment from buyers without first entering into a written agreement for sale. This provision is essential to prevent developers from collecting large sums of money from buyers before formalizing the terms and conditions of the property transaction. It protects buyers from unscrupulous practices and ensures that their financial interests are safeguarded.
• Project Funds: RERA mandates that developers must deposit 70 percent of the funds collected from property buyers into a separate bank account maintained by a scheduled bank. These funds can only be used for the specific project's construction and land-related costs. This provision aims to prevent the diversion of funds collected for one project into other activities or ventures, thereby ensuring that the money is utilized for the intended purpose, which is the completion of the real estate project.
• Withdrawal Control: Withdrawals from the project's designated bank account are permitted in proportion to the project's completion, as certified by professionals such as engineers, architects, and chartered accountants. This control ensures that funds are disbursed according to the progress of the construction work, reducing the risk of financial mismanagement and ensuring that buyers' investments are effectively utilized for the development of the project.
• Promoter Accountability: Developers are held accountable under RERA for any false or incorrect statements made about the project. If a developer is found to have provided misleading information to buyers, they are obligated to compensate buyers. In cases of severe discrepancies or issues, developers may be required to refund the property cost to buyers along with interest. This provision ensures that developers are truthful and transparent in their dealings with buyers.
• Audit and Penalties: RERA mandates that project accounts must undergo regular audits, and copies of these audit reports must be submitted to the respective state's RERA authority, such as MahaRERA in Maharashtra. Non-compliance with these audit requirements can lead to serious consequences, including the freezing of the project's bank account and financial penalties on the developer. Regular audits help in maintaining financial transparency and accountability throughout the project's lifecycle.

The financial discipline provisions in RERA are designed to promote responsible financial practices in the real estate sector. These provisions protect the interests of property buyers, prevent misappropriation of funds, and enhance transparency, ultimately contributing to a more trustworthy and sustainable real estate market.

Transparency

Transparency is a central theme of RERA, and the Act includes several provisions to ensure that information related to registered real estate projects is readily available to the public. This transparency serves to empower citizens with essential information when making property investment decisions. Key transparency provisions include:

• Online Availability of Project Details: The Act mandates that details of all registered projects be available online. This information includes sanctioned plans, layout plans, proposed project details, project schedules, and updates on the project's status. By making this information easily accessible, potential buyers can review and assess the project's credibility and progress.
• Mandatory Display of Information: Developers are required to prominently display the MahaRERA website address and their registration number in all project advertisements. This ensures that buyers can easily access additional project details and verify a developer's compliance with RERA.

Citizen-Centric Approach

RERA takes a citizen-centric approach to protect the rights and interests of property buyers. It introduces various provisions to ensure that buyers are informed, involved, and protected throughout the property transaction process. Key aspects of the citizen-centric approach include:

• Approval for Significant Alterations: Developers cannot make significant alterations to project plans, layouts, or specifications without the consent of at least two-thirds of the property buyers. This safeguard prevents developers from making unilateral changes that could negatively affect the interests of buyers.
• Interest for Project Delays: In cases of project delays, developers are liable to pay interest to buyers. This provision encourages developers to complete projects on time, reducing the financial burden on buyers who may have to wait for possession.
• Formation of Legal Entities: Developers must enable the formation of legal entities, such as cooperative societies or associations of property buyers, within a specified time frame. This facilitates collaboration and collective decision-making among property buyers, allowing them to collectively address issues related to the project.
• Conveyance Deeds: Developers are required to execute registered conveyance deeds in favor of property buyers within a defined period after the issuance of occupancy certificates or upon a specific percentage of buyers having paid the full consideration. This ensures that buyers have legal ownership of their properties in a timely manner.

The transparency and citizen-centric approach of RERA are designed to protect the interests of property buyers and promote fair and ethical practices in the real estate sector. These provisions empower buyers with information, involve them in important decisions, and hold developers accountable for their commitments, ultimately creating a more balanced and trustworthy real estate market.

The Real Estate (Regulation and Development) Act of 2016, along with the establishment of MahaRERA in Maharashtra, marks a significant milestone in the reform of the Indian real estate sector. It upholds principles of transparency, citizen-centricity, accountability, and financial discipline, ultimately benefiting both property buyers and developers alike. This legislation sets the stage for a more transparent, accountable, and efficient real estate market in Maharashtra, providing confidence to all stakeholders in the real estate industry.

How MahaRERA empowers Homebuyers in Maharashtra

Transparency and Information Access

Homebuyers will benefit from easy access to comprehensive project information, ensuring they have all the data they need to make informed decisions. This transparency reduces the risk of hidden surprises or misleading practices.

Financial Protection

The Act imposes restrictions on advance payments, safeguarding homebuyers from making substantial payments without formal agreements. This financial discipline protects their interests and investments.

Project Completion Assurance

Homebuyers can be more confident about project completion as developers are required to deposit a significant portion of project funds in a designated bank account. This ensures that their investments are used for the intended purpose of completing the project.

Prompt Resolution of Disputes

The existence of a dedicated platform for filing complaints and an Appellate Tribunal ensures swift and fair resolution of disputes. This protects homebuyers' rights and provides them with an avenue to seek redressal in case of issues with developers.

Protection from Unauthorized Changes

Homebuyers are shielded from unilateral alterations to project plans, layouts, or specifications without their consent. This provision prevents developers from making changes that could negatively impact buyers.

Ownership Assurance

Developers must execute registered conveyance deeds in favor of homebuyers within a specified time frame. This guarantees legal ownership rights, providing peace of mind to homebuyers.

Professionalism in Real Estate Transactions

Registered real estate agents are held to higher professional standards, ensuring that homebuyers deal with qualified and ethical professionals who prioritize their interests.

Promotion of Collective Action

Developers are required to enable the formation of legal entities among homebuyers, facilitating collective decision-making and issue resolution. This ensures that buyers have a say in project-related matters.

Interest for Project Delays

Homebuyers are entitled to interest payments in cases of project delays, reducing financial burdens and holding developers accountable for timely delivery.

Overall Confidence and Trust

The comprehensive regulatory framework instills confidence and trust in the real estate market, making it a safer and more reliable environment for homebuyers.

To conclude, the Real Estate (Regulation and Development) Act of 2016 and the dedicated regulatory authority, MahaRERA, have brought about a transformative shift in the real estate landscape of Maharashtra, prioritizing transparency, accountability, and consumer protection. Homebuyers in Maharashtra now have access to critical project information, financial safeguards, and a robust dispute resolution mechanism, all of which empower them to make informed decisions and invest in properties with confidence.

At Dwello, we are committed to upholding the highest standards of professionalism and ethics in the real estate industry. Our practices align seamlessly with the guidelines set by MahaRERA, ensuring that your home-buying journey is not only smooth but also secure. We provide expert guidance, transparent transactions, and a dedication to your interests, making us your trusted partner in the pursuit of your dream home. With Dwello, your home-buying experience is not just about acquiring a property; it's about achieving peace of mind and the assurance that your investment is protected every step of the way.