Maharera Act
The Rera Act, 2016 has come into consideration since May 2017. This law was executed to direct and supervise the real Estate sector. The MahaRERA act is the body that governs the real estate sector in Maharashtra.
WHAT IS MahaRERA?
Under the Rera Act 2016, all States have to initiate a regulatory authority to deal with the troubles starting from transactions in real estate market. The Rera act in Maharashtra come into consideration from May 1, 2017. The State has established MahaRERA act on March 2017 for rules and advancement of real estate sector. Since the whole State is covered under MahaRERA act, it is necessary for all ongoing commercial and residential projects to be recorded with the real estate regulator. The developers or promoters in the State are not permitted to sell, book or advertise their projects unless they don’t have Maharera registration and compliant. Maharashtra has determined a regulatory authority which will deal with revelation by developers, registration of projects as well as agents and take up consumer complaints. Any resentful person can file a complaint with MahaRERA act or the adjudicating officer with respect to any registered or non-registered real estate projects for any breaking of rules.
Maharera rules has the mandate to:
· Have real estate projects and agents registered.
· Usher in clarity in the sale of flats, plots and buildings.
· Safeguard customers, allottees, real estate agents and promoters who are connected with the real estate transactions.
· Facilitate dispute resolution with a dispute settlement method.
· Make an appellate tribunal which buyers can hail to resolve disputes.
· Give recommendations to the appropriate government authorities in matters related to development and promotion of real estate.2
· In Maharashtra, Maharera registration is necessary for all the residential and commercial project. Real estate builders are not allowed to advertise, book or sell any real estate without Maharera registration.
Features OF MahaRERA Act
There are number of features and advantages of MahaRERA act. These are as follows:
1. RERA AUTHORITY: MahaRERA act handles registrations linked to the state of Maharashtra as well as the union territories.
2. VOLUME OF GRIEVANCES: The regulatory authority has received almost 9000 complaints till 23 September 2019, Out of which near about 8,300 complaints were against the registered projects and around 700 complaints were against unregistered projects.
3. EASY TO USE WEBSITE: MahaRERA act also has an official website which is very user-friendly and is comprehensive and easy to understand. It gives data of projects which have been registered with the MahaRERA act. It facilitates homebuyers and property investors to be better educated. Users of the website can find data linked to expected date of possession, credibility of brokers, etc. Most importantly, now that borrowers or the home buyers know when the project is going to be finished, they can determine when they should apply for a home loan.
4. BUYER FRIENDLY: MahaRERA act is buyer friendly due to the only projects under Maharera registration and are permitted to advertise. Lag in completion of projects are handled firmly; in case of lag in project completion, If the allottees or the buyers do not want to withdraw from the project, the builders are needed to compensate the buyers by way of refunding the buyers or the allottees’ money along with interest at the specified rate for each month of lag till the developer hands over the property to the allottee.
Benefits OF MahaRERA Act
1. HIGH LEVEL OF CLARITY: Before RERA Act, there was a lack of clarity in the real estate sector; buyers were left to the forgiveness of developers to get possession of property they buy, promoters and developers could publish non-factual advertisements, etc. However, with the introduction of RERA act, the consumer is given all the data linked to the project he has bought his property in, the developer has to mandatorily adhere to registration of the project with RERA act, report on its progress, intimate about lags, if any, is penalized for the same, etc. Additionally, buyers have the right to question each step intricated in both development and promotion.
2. ADHERENCE TO LAW AND ORDER: Now that MahaRERA act has come into consideration, there is no scope for developers to funnel funds gathered from investors and redirect them to some other projects. Down payment has been fixed at 10%. Non-compliance to RERA provisions interests penal action of imprisonment up to 3 years as well as financial punishment.
3. RESPONSIBILITY: It is necessary for Developers to deposit 70% of all money paid towards a particular project into a single account. These funds are to be utilized only for cost of land or the construction cost. Developers must also report advancement systematically on the project to the regulatory authorities.
4. INCREASED TRUST: Perhaps the greatest advantage that customers have is the reinforced trust in the real estate sector. This has led to rejuvenation of the sector and greater belief among property buyers.
This post first appeared on Impact Of Covid 19 On Real Estate Sector, please read the originial post: here
