MahaRERA Update: Guidelines for Homebuyers to Consider Before Investing in Property

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently issued detailed guidelines to help homebuyers make informed decisions before purchasing a property. These guidelines aim to ensure transparency, accountability, and legal protection for buyers while urging them to perform due diligence.

Here’s everything you need to know about the guidelines issued by MahaRERA and how they can help you safeguard your investment.

Why Are MahaRERA Guidelines Important for Homebuyers?

MahaRERA has taken significant steps to protect homebuyers from fraudulent practices, delayed projects, and incomplete promises by developers. The guidelines ensure:

1. Legal and financial safety for buyers.
2. Better accountability from developers.
3. A smooth and transparent home-buying experience.

Key MahaRERA Guidelines for Homebuyers

1. Verify Project’s MahaRERA Registration

Before making a purchase, check if the project is registered with MahaRERA. Every registered project has a unique registration number, which you can verify on the official MahaRERA website: https://maharera.maharashtra.gov.in

• Ensure that the project has a valid commencement certificate indicating the approvals received to construct up to a specific floor.
• Check if the project complies with MahaRERA’s rules, including timely submission of compliance reports.

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2. Review Legal and Financial Details

MahaRERA emphasizes that homebuyers must:

• Check the title clearance report of the plot on which the project is being constructed.
• Verify that the project has no pending litigations or encumbrances.
• Confirm that the developer maintains financial discipline by depositing 70% of the project funds into an escrow account.

3. Monitor Project Updates

Developers are required to submit quarterly progress reports to MahaRERA, detailing the construction status and compliance. Homebuyers can track this progress on the MahaRERA website and raise complaints if there are irregularities.

4. Agreement for Sale: What to Look For

When entering into an agreement for sale, ensure that:

• The flat number, carpet area, and project completion date are clearly mentioned in the agreement.
• A detailed annexure is provided, listing parking space details (e.g., garage, stilt, or open parking), its dimensions, and exact location.
• All promised facilities and amenities, along with their completion timelines, are specified in the agreement.

5. Deal Only with Registered Agents

To avoid fraud, MahaRERA advises buyers to work exclusively with registered real estate agents. The details of registered agents can also be verified on the MahaRERA portal.

Steps to Check MahaRERA Registration

Follow these steps to confirm if the project has valid MahaRERA registration:

1. Visit the official MahaRERA website: https://maharera.maharashtra.gov.in
2. Search for the project using its name or MahaRERA registration number.
3. Review the details, including construction status, approvals, and compliance reports.
4. Check if the project’s registration is valid or suspended. MahaRERA regularly updates the list of suspended projects on its website.

Obligations of Real Estate Developers Under MahaRERA

MahaRERA has listed several responsibilities for developers to ensure fair practices:

1. Submit detailed project information, including ownership documents, approvals, and floor plans.
2. Provide quarterly progress reports to MahaRERA.
3. Enter into a sale agreement with homebuyers upon receiving up to 10% of the total property value.
4. Maintain transparency regarding funds by depositing 70% of the project’s earnings into an escrow account.

Common Mistakes Homebuyers Should Avoid

To ensure a safe investment, avoid the following mistakes:

How MahaRERA Guidelines Benefit Homebuyers

These guidelines provide a range of benefits to homebuyers:

1. Transparency: Buyers can access detailed project information online, including compliance reports and approvals.
2. Legal Safety: Ensures agreements and transactions comply with legal requirements.
3. Financial Security: The escrow account mechanism prevents developers from misusing funds.
4. Accountability: Developers are held accountable for delays and non-compliance.

MahaRERA Chairman’s Advice to Homebuyers

Manoj Saunik, Chairman of MahaRERA, emphasizes the importance of buyers conducting thorough research before investing in a property.

• Homebuyers should insist that developers provide all necessary documents, including title clearance reports, commencement certificates, and details of approvals.
• Carefully study the annexure in the Agreement for Sale, which should mention flat details, parking spaces, and promised amenities.

Conclusion

The MahaRERA guidelines are a significant step toward protecting homebuyers and ensuring a transparent real estate ecosystem in Maharashtra. By following these guidelines, buyers can minimize risks, avoid fraud, and make informed decisions.

If you’re planning to invest in real estate, always prioritize projects registered with MahaRERA, verify all legal documents, and monitor progress regularly. MahaRERA’s commitment to creating a legally and financially secure home-buying experience makes it easier for buyers to navigate the real estate market confidently.

Start your home-buying journey with MahaRERA-registered projects for a safe and successful investment!

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