Maharashtra's Real Estate Sector to Benefit from MahaRERA's New Bank Account Regulations
Discover how Maharashtra's real estate sector is set to benefit from increased buyer protection and transparency with MahaRERA's new regulations.
MaharashtraReal EstateMahareraReraBank AccountsReal Estate MaharashtraJun 30, 2024
The three accounts are RERA Designated Collection Account, RERA Designated Separate Account, and RERA Designated Transaction Account. The Collection Account will receive 100% of buyer funds, excluding government taxes. A minimum of 70% of these funds will be transferred to the Separate Account, earmarked for land acquisition and construction expenses. The remaining 30% will be allocated to the Transaction Account, allowing developers flexibility for project-related expenses.
These measures are designed to safeguard buyer interests by ensuring funds are utilized efficiently towards project completion. Homebuyers will benefit from increased transparency, with 70% of their money clearly allocated for construction. Faster refunds are also possible, and project completion will stop all transactions in these accounts, ensuring funds are used for their intended purpose. Banks will be required to prevent unauthorized access to the designated accounts, offering an extra layer of security for buyer funds. Developers will also need to disclose details of any loans taken for the project, promoting financial transparency.
MahaRERA Chairman Shri Ajoy Mehta believes these measures will build trust between homebuyers and developers, minimizing potential delays in project completion and enhancing the real estate sector's credibility. With more transparency and protection, homebuyers in Maharashtra can have greater confidence in their real estate investments.
Frequently Asked Questions
What is the main objective of MahaRERA's new regulations?
The main objective is to enhance transparency and buyer protection in the real estate sector by introducing specific bank accounts for project funds.
How many distinct accounts will developers need to establish under the new regulations?
Developers will need to establish three distinct accounts within a single bank.
What percentage of buyer funds will be allocated to the RERA Designated Separate Account?
A minimum of 70% of buyer funds will be allocated to the RERA Designated Separate Account.
What is the benefit of the RERA Designated Transaction Account?
The Transaction Account allows developers flexibility for project-related expenses other than land acquisition and construction.
When do the new regulations come into effect?
The new regulations come into effect on July 1st, 2024.
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