MahaRERA's Homebuyer Guide: Essential Tips Before Investing in Real Estate
Prospective homebuyers in Maharashtra should thoroughly review the guidelines set by the Maharashtra Real Estate Regulatory Authority (MahaRERA) to ensure a transparent and secure investment.
MahareraHomebuyer GuideReal Estate InvestmentProperty VerificationDue DiligenceReal Estate MaharashtraJan 23, 2025
In Maharashtra, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has provided a comprehensive guide to help homebuyers make informed decisions.
This guide is designed to ensure that prospective homeowners conduct thorough due diligence before investing in a property.
Key Guidelines for Homebuyers
1.
Project Approval Verification Before making any investment, homebuyers should verify if the project plans have been approved by the local planning authority.
Additionally, they should check if the commencement certificate, which details the rights to develop up to a certain floor, has been issued in accordance with MahaRERA's rules.
This certificate is crucial as it ensures that the project is legally sanctioned.
2.
Title Clearance Report Homebuyers should obtain a title clearance report for the plot.
This report confirms the legal ownership of the land and ensures that there are no encumbrances or legal disputes.
3.
Due Diligence on Lawsuits It is essential to conduct due diligence on any lawsuits related to the project.
Homebuyers should find out if there are any ongoing legal proceedings, their nature, and their current status.
This information is crucial to avoid investing in a project with potential legal issues.
4.
Agreement Structure According to the draft approved by MahaRERA, the agreement for sale and the allocation letter should include detailed information about parking spaces, facilities, and amenities.
These details should be clearly outlined to avoid any misunderstandings or disputes in the future.
Important MahaRERA Requirements
5.
Payment and Agreement Homebuyers should be aware that if they are booking a home by paying up to 10% of the total consideration, it is binding on the developer to enter into an agreement for sale.
This ensures that the buyer's rights are protected from the outset.
6.
Registered Real Estate Agents MahaRERA recommends that homebuyers only work with registered real estate agents.
This helps to ensure that the transaction is conducted through a legitimate and regulated channel.
7.
Financial Discipline Developers are required to maintain financial discipline by reserving 70% of project proceeds in an escrow account.
This measure ensures that funds are used for the project's development and not diverted for other purposes.
Responsibilities of Real Estate Developers
8.
Regular Updates Developers are required to provide regular updates to MahaRERA.
They must submit a quarterly progress report on the project to the authority.
Homebuyers can use MahaRERA's website to track the project's development and file any complaints related to the developer.
9.
Project Registration A housing project must be registered with MahaRERA.
Homebuyers should verify the project's registration number before entering into any financial transactions.
They should also confirm the following details - Lawsuits Whether there are any lawsuits related to the project and their current status. - Obstacles Any obstacles or issues that may affect the project. - Commencement Certificate The number of floors covered by the project's commencement certificate. - Local Planning Authority Approvals The approvals obtained from the local planning authority, including whether they are for full or partial construction.
10.
Detailed Annexure Developers are required to include a detailed annexure in the Agreement for Sale and Allotment Letter.
This annexure should provide precise information about parking spaces, project amenities, the flat number, carpet area, and the project completion date.
The annexure must also specify the dimensions, location, and type of parking spaces (garage, stilt, mechanical, or open).
Additionally, it should list the amenities and facilities promised and their expected completion dates.
Conclusion
Investing in a home is a significant decision that requires careful consideration.
By following MahaRERA's guidelines, homebuyers can ensure that their investment is secure and transparent.
It is essential to conduct thorough due diligence and verify all necessary details before making any financial commitments.
MahaRERA's website is a valuable resource for tracking project progress and filing complaints if needed.
By adhering to these guidelines, homebuyers can have peace of mind knowing that their investment is protected.
Frequently Asked Questions
What is MahaRERA?
MahaRERA, or the Maharashtra Real Estate Regulatory Authority, is a regulatory body established to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector in Maharashtra.
Why should homebuyers verify project approvals?
Verifying project approvals helps ensure that the project is legally sanctioned and reduces the risk of investing in an unauthorized or problematic development.
What is a title clearance report, and why is it important?
A title clearance report confirms the legal ownership of the land and ensures there are no encumbrances or legal disputes, which is crucial for a secure investment.
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 spaces, facilities, amenities, flat number, carpet area, and project completion date.
What are the key responsibilities of real estate developers under MahaRERA?
Key responsibilities include providing regular updates to MahaRERA, maintaining financial discipline, and including detailed annexures in agreements that specify project details and promised amenities.
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