After stringent enactment of Government of India’s policy against builders, i.e. RERA, home buyers have now a sign of relief. Maharashtra being the central hub of India needed this enactment severely and when Government of Maharashtra vide notification dated April 20th, 2017 implemented this clause under Maharashtra Real Estate Regulatory Authority (“MahaRERA”), the law became somewhat supportive for homebuyers.
Objective of MahaRERA
The key focus of applying Rera Act Maharashtra was to protect sovereignty of the home buyers who otherwise would become victims of Maharashtra is the first state to implement the Act with an objective to protect homebuyers whose interests were frequently violated by the developers.
Important aspects of MahaRERA:
Sale based on carpet area: Before MahaRERA came into existence, home buyers were forced to buy property on the built up area and the actual living space was ignored by the builder. But after Rera Act Maharashtra came, developers must sell the property based on the carpet area only i.e. the apartment space within walls which excludes the balcony and building gallery. So customers will pay for only the area they will occupy.
Clear information on Parking Space
Rera Act Maharashtra comes along with a major clause to have a disclosure by the developers about the charges applied on the parking space. He must mention it clearly in the official agreement papers separately.
MahaRERA is indeed a major amendment in the law of property concerning the Maharasthra builders’ monopoly. Having several provisions introduced that certify a transparent approach to the deal, there are significant benefits to homebuyers who need a property to dwell. These benefits are:
Full disclosure: Buyers would be allowed a full charter of the builder’s project before and after its completion. This will influence a positive judgment from the buyer in decision making.
Registration: Rera Act Maharashtra mandates all builders to work according to its laid guidelines and register their projects for safe and reliable project completion. Every estate agent must necessarily register with the Government so that the customer is not cheated.
No alterations: Developers are not allowed to make amendments in the sanctioned plans and even fixtures, fittings and furnishings cannot be tampered without previous consent from at least two-thirds of the allottees, other than the Developer who own an apartment in that building.
Interest from developer: The Developer must pay interest on the property to its owner if he cannot complete it in due course of time. Failure to give possession of an apartment, plot or building as per the agreement makes him pay interest every month for the delay. The developer must also remit back the amount with interest to the buyer if the buyer withdraws from the project.
Sale without prejudice: As per past instances, home buyers were denied flat purchase due to their cast, creed or religion. But Rera Act Maharashtra strongly disapproves this notion and restricts Developers from the bias approach on home buyers on any basis.
Rera Act Maharashtra is a revolutionary step in safeguarding homebuyers’ interests. A complete disclosure on the part of developer about land cost, cost of construction and estimated cost of the real estate project are some of the few steps taken by the Government of India. Hence, delays in construction, material misuse, area of sale, all matter the most when jurisdiction plays an important part here. Certainly, the buyers will benefit from this rule in Maharashtra for good.