MahaRERA Issues Orders to Safeguard Real Estate Agents, Landlords, And Homebuyers In Maharashtra

Introduction:- 

MahaRERA has issued a minimum of five regulatory orders in the past week to safeguard the interests of homebuyers, landlords, and real estate agents in Maharashtra. These directives focus on the brokerage fees payable by all parties in a sale agreement to the real estate agent, provide two clarifications regarding projects constructed on plots of up to 500 square meters, and outline the requirements for bank accounts that landlords must maintain.

• The MahaRERA order mandates that the brokerage fee to be paid to real estate agents must be specified in the agreement for sale.

As per the MahaRERA order issued on October 22,[1] the sale agreement between the developer and the purchaser, facilitated by a registered real estate agent, must specify the amount (including taxes) to be paid as fees, commission, or brokerage to the agent by either the developer, the buyer, or both, depending on the situation. .

Real estate agents believe that this MahaRERA order will ensure timely payment of their fees and commissions, while also reducing disputes related to the non-payment of brokerage.

• RERA registration is not mandatory for plots covering an area of 500 square meters.

Another order issued by MahaRERA on October 22 has clarified that where the proposed construction is on land equal to or less than 500 sq m RERA registration irrespective of the number of apartments that are to be built on it as per the permissions issued by the competent authority may not be required.

Exempting projects under 500 sq m from RERA registration means that buyers may have limited remedies, especially when it comes to addressing completion timelines.

• The MahaRERA circular offers clarification on what constitutes the receipt of commencement and completion certificates for plotted development projects.

Commencement Certificate: – MahaRERA outlined the definition of a commencement certificate (CC) and a completion certificate for plotted development projects under the Unified Development Control and Promotion Regulations (UDCPR). This clarification is expected to assist individuals looking to invest in such projects. The authority stated that the final approval granted for the land subdivision layout in Form D-3 of the UDCPR for Maharashtra or a similar approval with non-agricultural permission will be regarded as the commencement certificate for plotted development projects.

Completion Certificate: – For the completion certificate, a certificate issued by the competent authority that specifies the commencement and completion dates, along with the conditions outlined, along with a duly filled and signed Form 4 of MahaRERA, will be considered as the completion certificate.

• Landlords are not required to open three bank accounts.

Previously, MahaRERA had stated that starting July 1, real estate developers would be prohibited from depositing amounts received from homebuyers into different bank accounts. It had mandated the maintenance of three separate bank accounts for each project at a single bank to ensure financial discipline and timely project completion. However, since landlords are also considered promoters (developers) by MahaRERA, there was uncertainty about whether they would also be required to maintain three separate bank accounts.

To clarify this, MahaRERA announced on September 4 that landlords who are not promoters (developers) would not be obligated to open three separate bank accounts.

• Parking details in agreement and allotment letter.

Earlier, MahaRERA had instructed real estate developers to compulsorily include details of parking spaces allocated or sold to homebuyers in the sale agreement and to issue an allotment letter to avoid any confusion and potential disputes in the future. This directive was officially communicated by the authority on September 3[2].

The regulator passed the order after it received several complaints from homebuyers such as building beams obstructing parking of vehicles, inability to park in the allotted slot, inadequate maneuvering space. Consequently, the regulator decided to make it mandatory for developers to include all details such as size, height, width related to parking in annexures to the allotment letter and sale agreement.

Conclusion

MahaRERA’s latest measures reflect a dedicated effort to streamline Maharashtra’s real estate sector by promoting transparency, accountability, and fairness. These initiatives address crucial concerns, such as clarifying brokerage fees, exempting small plots from RERA registration, and defining essential terms like commencement and completion certificates. The directives also tackle financial and operational issues, ensuring timely payments to agents, fair treatment for landlords, and improved clarity for homebuyers. By mandating details like parking specifications in agreements, MahaRERA is actively minimizing disputes and enhancing trust among stakeholders.

These regulations collectively aim to create a balanced ecosystem where the interests of homebuyers, real estate agents, and developers are safeguarded. By establishing clear standards and resolving long-standing challenges, MahaRERA is fostering an environment of efficiency and trust in real estate transactions, ultimately boosting confidence in Maharashtra’s property market.

[1] MahaRERA/Secy/File No. 27/1004/2024

[2] Real Estate Law Journal MahaRERA Issues Orders to Safeguard Real Estate Agents, Landlords, and Homebuyers in Maharashtra