Check Before You Invest: MahaRERA's Homebuyer Guide for Mumbai
Prospective homebuyers in Mumbai should review the guidelines provided by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to ensure a smooth and safe investment.
MahareraHomebuyersReal EstateGuidelinesMumbaiReal Estate MumbaiJan 23, 2025
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has released a comprehensive guide to help buyers navigate the real estate market in Mumbai.
Here’s what you need to know to make an informed decision.
MahaRERA's Role in Protecting HomebuyersMahaRERA has established a set of guidelines to ensure that homebuyers are well-informed and protected throughout the purchasing process.
These guidelines are designed to help prospective homeowners avoid common pitfalls and make wise investment decisions.
Key Points to Consider1.
Project Approvals and Certificates - Verify that the project plans have been approved by the local planning authority. - Check if the commencement certificate, which details the rights granted to develop up to a certain floor, has been issued in accordance with MahaRERA's rules. - Obtain a plot's title clearance report to ensure there are no legal issues.
2.
Due Diligence on Lawsuits and Encumbrances - Conduct due diligence to identify any lawsuits against the project and their current status. - Look for any encumbrances that might affect the property’s value or usability.
3.
Agreement for Sale and Allocation Letter - Ensure that these documents include detailed information about parking, facilities, and amenities. - According to MahaRERA, if a home is booked by paying up to 10% of the total consideration, it is mandatory for the developer to enter into an agreement for sale.
4.
Working with Registered Real Estate Agents - Choose registered real estate agents to handle the transaction, as they are regulated and trustworthy. - Developers are required to maintain financial discipline by reserving 70% of project proceeds in an escrow account.
5.
Developer's Responsibilities - Developers are required to provide regular updates on the project’s progress. - MahaRERA must receive quarterly reports from the developer to ensure transparency and accountability.
Utilizing MahaRERA's ResourcesHomebuyers can use MahaRERA’s website to track the development of the project and report any complaints about the developer.
This helps in maintaining a transparent and fair process.
Additional Information to ConfirmBefore entering into a financial transaction, homebuyers should confirm the following details 1.
Lawsuits Are there any lawsuits related to the project? What are they about, and what is their current status?2.
Encumbrances Are there any encumbrances on the project?3.
Commencement Certificate How many floors does the project's commencement certificate cover?4.
Local Planning Authority Approvals Which approvals has the project obtained? Are these approvals for full or partial construction?
Annexure to the Agreement for Sale and Allotment LetterIn the annexure to the Agreement for Sale and Allotment Letter, developers must include precise information such as - Parking Spaces Details including dimensions, exact location, and type (garage, stilt parking, mechanical, or open).- Amenities and Facilities A list of the amenities and facilities that have been promised, along with the date of completion.- Flat Number and Carpet Area The specific flat number and carpet area of the property.- Project Completion Date The expected completion date of the project.
By following these guidelines, homebuyers can ensure that they are making a well-informed and secure investment in the real estate market of Mumbai.
Frequently Asked Questions
What is MahaRERA?
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector.
Why should homebuyers verify project approvals and commencement certificates?
Verifying project approvals and commencement certificates ensures that the project is legally compliant and has the necessary permissions to proceed, reducing the risk of legal issues in the future.
What should be included in the Agreement for Sale and Allocation Letter?
The Agreement for Sale and Allocation Letter should include detailed information about parking, facilities, amenities, flat number, carpet area, and the project completion date.
Why is it important to work with registered real estate agents?
Working with registered real estate agents ensures that the transaction is handled by professionals who are regulated and trustworthy, reducing the risk of fraud or misrepresentation.
What resources does MahaRERA provide to homebuyers?
MahaRERA provides a website where homebuyers can track the development of the project and report any complaints about the developer, ensuring transparency and accountability.
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