The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently taken proactive measures to ensure the welfare of homebuyers, landlords, and real estate agents in the state. Over the past week, MahaRERA has issued five important regulatory orders aimed at addressing various concerns that have long affected the real estate sector. These initiatives are designed to enhance transparency, ensure timely payments, and clarify regulations surrounding property transactions in Maharashtra.
1. Mandatory Brokerage Disclosure in Sale Agreements
One of the most significant orders issued by MahaRERA mandates that all agreements for sale, facilitated by registered real estate agents, must explicitly mention the commission, brokerage, and any charges that the promoter or the allottee has agreed to pay. This order, effective from October 22, 2024, aims to ensure that agents receive their brokerage fees promptly and to minimize disputes over payment.
Historically, many real estate agents have faced challenges in receiving their due payments, often leading to conflicts between agents and developers. By formalizing the commission structure in the sale agreements, MahaRERA aims to create a clearer framework for transactions, fostering better relationships among all parties involved. As noted by industry experts, this regulatory change not only supports the interests of agents but also instills greater confidence among homebuyers and landlords.
2. Exemption for Smaller Plots from RERA Registration
Another notable regulatory change is the clarification regarding RERA registration for projects on plots measuring 500 square meters or less. According to the order, such projects are exempt from RERA registration, regardless of the number of apartments planned. While this may reduce the regulatory burden on developers, legal experts caution that buyers in these smaller projects may find themselves with fewer protections and remedies, particularly regarding completion timelines and quality assurance.
The exemption can be seen as a double-edged sword. On one hand, it simplifies the process for small developers and encourages housing development in Maharashtra. On the other hand, buyers may need to exercise greater diligence when considering such properties, as the lack of RERA registration means limited recourse in case of disputes or project delays.
3. Clarification on Commencement and Completion Certificates
MahaRERA has also issued a circular defining what constitutes a commencement certificate (CC) and a completion certificate for plotted development projects. This clarification is crucial for investors seeking to understand the regulatory framework governing their investments.
A commencement certificate is now recognized as the final approval accorded to the land subdivision layout, while the completion certificate includes detailed documentation of the commencement and completion dates. By establishing clear definitions for these certificates, MahaRERA aims to eliminate ambiguity and assist stakeholders in navigating the complexities of property development and investment.
4. Relaxation on Bank Account Maintenance for Landlords
Previously, MahaRERA had mandated that developers maintain three separate bank accounts for each project to promote financial discipline and timely project completion. However, this requirement raised concerns among landlords, who are also classified as promoters under the authority's guidelines.
In response to these concerns, MahaRERA clarified that landlords not acting as developers are not required to maintain multiple bank accounts. This decision simplifies the regulatory burden for landlords, allowing them to manage their finances more efficiently while still adhering to necessary regulations.
5. Detailed Parking Provisions in Agreements
Another key order from MahaRERA requires real estate developers to include detailed specifications regarding parking spaces in sale agreements and allotment letters. This directive aims to prevent future disputes arising from inadequate parking facilities, which have been a common complaint among homebuyers.
The authority has mandated that all relevant details, including dimensions and specific allotments of parking spaces, be clearly outlined in the sale agreement. This measure is expected to reduce confusion and ensure that homebuyers have a clear understanding of their parking rights before making a purchase. The move comes in light of numerous complaints about obstructed parking and inadequate maneuvering space in residential projects, further emphasizing the need for greater accountability in the sector.
MahaRERA's recent regulatory orders represent a significant step toward enhancing the transparency and accountability of the real estate sector in Maharashtra. By addressing the critical issues faced by homebuyers, landlords, and real estate agents, the authority is fostering a more equitable and trustworthy environment for property transactions.
Image source-maharera
