MahaRERA Emphasizes Due Diligence: Builders Must Be Aware of Market Conditions
Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed a builder to pay interest to a homebuyer for delayed possession, citing the need for due diligence in declaring possession dates.
MahareraReal EstateDue DiligenceMarket ConditionsDelayed PossessionReal EstateJul 11, 2024
The case in question involved a homebuyer who had entered into an agreement with the builder, Greenfield Developers & Realtors L.L.P, to purchase a flat in the project Om Satyam Niwas CHS Ltd. The total cost of the flat was Rs. 1,34,00,000/-, and the homebuyer had paid a substantial amount of Rs. 1,24,62,000/-. However, despite the payment, the builder failed to hand over possession of the flat by the promised date of 31.07.2020.
The homebuyer filed a complaint with MahaRERA, seeking possession and interest for the delayed possession. The authority noted that the project was incomplete, as the builder had not uploaded the Occupancy Certificate (OC) on the MahaRERA website. This delay on the part of the builder led to the failure to hand over possession of the flat to the homebuyer with the Occupancy Certificate.
The authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states that if a builder fails to complete or is unable to give possession of an apartment, plot, or building within the stipulated timeframe, they shall be liable to return the amount received by them in respect of that apartment, plot, or building, with interest and compensation.
The authority observed that builders, being aware of market conditions, are expected to finalize the possession date of the project by conducting thorough due diligence. As Section 18 of RERA, 2016, does not provide any waivers or exceptions to builders, the authority directed the builder to pay interest to the homebuyer from the possession date stipulated in the agreement until the date the occupancy certificate is received by the builder.
This ruling serves as a reminder to builders to exercise due diligence in declaring possession dates, taking into account market conditions and other factors that may affect the project's completion. It also protects the interests of homebuyers, ensuring that they receive fair compensation for delayed possession.
Information
Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote the real estate sector in Maharashtra.
MahaRERA is committed to protecting the interests of homebuyers and promoting transparency and accountability in the real estate sector.
Frequently Asked Questions
What is MahaRERA?
MahaRERA is the Maharashtra Real Estate Regulatory Authority, a regulatory body established under the Real Estate (Regulation and Development) Act, 2016.
What is due diligence in real estate?
Due diligence in real estate refers to the thorough investigation and research conducted by builders to identify potential risks and opportunities in a project.
What is the significance of market conditions in real estate?
Market conditions, such as demand and supply, affect the completion of real estate projects and the declaration of possession dates.
What is the purpose of Section 18 of RERA, 2016?
Section 18 of RERA, 2016, provides for the return of amount and compensation to homebuyers in case of delayed possession or failure to complete a project.
How does MahaRERA protect homebuyers' interests?
MahaRERA protects homebuyers' interests by regulating the real estate sector, promoting transparency and accountability, and providing a platform for redressal of grievances.
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