The Real Estate (Regulation and Development) Act, 2016 is an Act that gives protection to home buyers in the real estate sector of India. Registration under this act is a necessity for the builder where his duty involves complete clarity about each project completion, cost, covered area, construction delays or other unspecified information that must be clearly mentioned on a website authenticated by a CA or engineer where only approved plans will be listed by the regulator. Similarly, Government of Maharashtra implemented the RERA Act on May 1, 2017 and established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March 2017, for regulation and promotion of real estate sector in the State of Maharashtra, with its headquarters at Mumbai. Chairman Gautam Chatterjee heads the MahaRERA implementation. This act lays a set of objectives which portray its importance:
The promoter shall furnish all the necessary documents required under the Act for registration of the real estate project with the Authority including that of the directors, chairman and partners to the registrar. Land ownership deed or collaboration agreement or any other agreement between the promoter and such owner will reflect the consent of the deal and the land proposed to be developed. Information on the FSI/ TDR needs to be disclosed. To the allottee, the promoter shall disclose all details of ongoing real estate project u S/S (1) and (2) of section 4 and Rule 3 including the extent of development carried out till the date of application for registration under sub-rule (1).
The buyer gets added protection in case the sanctioned Floor Space Index is different than what is proposed to be consumed by the promoter. Then, the proposed Floor Space Index will need disclosure during registration and the same needs to be uploaded on the website of the Authority by the promoter from time to time. To spread awareness amongst the buyer, any alteration in proposed structure, its number of wings also must be disclosed at registration. There must be an open confession on the website about each project amendment on the Authority’s website.
A secure payment mode is adapted by the Authority where registration fees of real estate project shall be paid through NEFT or RTGS System or any other digital transaction mode. Safety compliance also is an integral part of this law. Earthquake resistant measures and type of construction technology must be adopted for buildings in the Layout Plan of the real estate project.
The authentication of registration under MahaRERA is compulsory to authorize the promoter as a genuine seller after paying a registration fee on the area of the land proposed to be developed. Full revelation about land cost, construction cost and estimated cost of the real estate project.
RERA also necessitates to declare other ongoing projects. Advertisements for promotion tendering sale, or to offer booking is legitimized only when the project is registered under MahaRERA. It further lays down the extent of development of common areas, amenities etc. of buildings and their completion period.
Ownership delays or procrastination in projection completion provides for penalty. Therefore, the promoter shall also disclose the original completion time confirmed to the allottees at the time of sale. He must submit a certificate from the practicing project Architect certifying the percentage of constructed work of each site or wing of the project.
In terms of payment from the buyers, a certificate from a practicing Chartered Accountant serves as a crosscheck certifying the balance amount of receivables from the apartments and premises sold or allotted on which sale purchase agreements have been validated. Estimated amount from unsold flats also needs declaration. Even after ownership, problems like dilapidated flat construction, water and sewage problems, etc. can be addressed with RERA by the owners. After possession, five years are given to buyers under this protection right and the developer must rectify the same within 30 days of a complaint.
Moreover, the regulator can fine or incarcerate unlawful builders according to their provisionary cases. The rules underlying MahaRERA under RERA give extra cover and safety to the buyer that he enjoyed never before.