Nineteen Frequently Asked Questions About Maha RERA
8 months ago
Ninteen Frequently Asked Questions About Real Estate Regulation & Development Act | Maha RERA
What are the objects and reasons for which the Real Estate (Regulation and Development) Act 2016 has been framed? To ensure accountability towards allottees and protect their interest. To infuse transparency, ensure fair-play and reduce frauds & delays. To introduce professionalism and pan India standardization. To establish symmetry of information between the promoter and allottee. To imposing certain responsibilities on both promoter and allottees. To establish regulatory oversight mechanism to enforce contracts. To establish fast- track dispute resolution mechanism. To promote good governance in the sector which in turn would create
Which areas of Maharashtra are included in the Planning Area as defined in the Act? In accordance with notifications issued by Urban Development Department of Government of Maharashtra, all areas of Maharashtra are included.
Does the definition of ‘promoter’ include public bodies such as Development Authorities and Housing Boards? The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. The term ‘promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in sale are covered under the Act.
Real estate project has land area less than 500 sq.mts but contains more than 8 apartments. Still need to be registered? Every real estate project which has land area more than 500 sq.mts and has more than 8 apartments needs to be registered.
Does advertisement include solicitation by emails and sms? Is issuance of prospectus considered to be a case of ‘advertisement’? As per section 2(b), which defines ‘advertisement’, any medium adopted in soliciting for sale would be covered under the said definition, including sms and emails. Prospectus, which is intended for sale of apartment in real estate project, will also be covered.\
Is it permissible to sell parking to allottees (Buyer)? Open Parking Area: This has been clearly included in the definition of “Common Areas” which need to be conveyed to the Association of buyers after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible Covered Parking as defined in the Maharashtra Real Estate (Regulation and Development) is permitted to be sold. Garage as defined in the Act is permitted to be sold.
What is the obligation of the promoter towards return of amount and compensation to the allottee (Buyer)? Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.
How will a flat buyer know, if the real estate project is duly registered under MahaRERA? The MahaRERA website would display all the registered projects. It is mandatory that the advertisement for marketing of apartments in the real estate project must carry the MahaRERA registration number. MahaRERA website link: https://maharera.mahaonline.gov.in
Is the promoter required to give any undertaking to MahaRERA for completing his project within a specified period? Yes, in accordance with the provisions of the Act, the promoter, while applying for registration to MahaRERA, has to give a declaration, supported by an affidavit, indicating the time period within which he undertakes to complete the project or phase thereof, as the case may be.
In case of delay in getting possession from the promoter, will the buyer be entitled to get interest on the amount paid by him, for such delayed period? Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.
Will such interest payment by the promoter to the buyer be automatic or the buyer will have to approach MahaRERA? The interest payment is in accordance with the model form of agreement and hence should be automatically paid. The buyer may have to file a complaint to MahaRERA if there is a grievance.
Is there a ceiling on the interest to be levied by the promoter in case of default in payment of any instalments by the allottee/buyer? In accordance with the model form of agreement, the Allottee has to pay to the Promoter, a rate of interest equal to the State Bank of India highest Marginal Cost of Lending Rate plus two percent, on all the amounts which become due and payable by the Allottee to the Promoter under the terms of the Agreement from the date the said amount is payable by the allottee(s) to the Promoter.
What are the provisions for an aggrieved person to lodge a complaint? Section 31 of the Act and Rule 6 of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017 provide for filing of complaint with MahaRERA, by an aggrieved person who has any interest in the registered project. The aggrieved person can file an application online as per format provided by MahaRERA.
Can a promoter or a real estate agent also file complaint against a buyer? Yes. An aggrieved person having any interest in the registered real estate project can file complaint.
Is there any time limit prescribed for disposal of complaints? Section 29 of the Act provides that complaints should be disposed of as expeditiously as possible but not later than sixty days from the date of filing the same. However, where it cannot be disposed of during the said period, the Real Estate Regulatory Authority is required to record its reasons for the same.
If the buyer wants to file a complaint in Consumer Court, is there any bar under the Act? As per section 79 of the Act, civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which Real Estate Regulatory Authority or the adjudicating officer or the Appellate Tribunal is empowered under the Act to determine. However, the consumer forums (National, State or District) have not been barred from the ambit of the Act. Section 71 permits the complainant to withdraw his complaint as regards matters under section 12, 14, 18 and section 19, from the consumer forum and file it with the adjudicating officer appointed under the Act.
Is there appeal provided against the orders given by MahaRERA? Is there a time limit? What are the fees? Any person aggrieved by any direction or decision or order made by MahaRERA or by an adjudicating officer may file an appeal before the Appellate Tribunal within a period of sixty days, in accordance with Rule 9 of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017.
Is there any time limit prescribed for the promoter for formation of society or any other legal entity of home buyers? Promoter has to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which fifty one per cent of the total number of Purchasers, in such a building or a wing, have booked their apartment.
Is there a time limit prescribed for the promoter to execute conveyance in favour of the association of buyers? Promoter shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or fifty one per cent of the total number of Purchasers, in such a building or a wing, has paid the full consideration to the promoter, whichever is earlier. MahaRERA Website: https://maharera.mahaonline.gov.in/