The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently issued five regulatory orders, aiming to safeguard the interests of real estate agents, landlords, and homebuyers across Maharashtra. These orders cover essential areas, such as mandatory disclosure of brokerage fees, exemption from RERA registration for specific small-scale projects, and clarifications around development project certifications. These new regulations are expected to ensure transparency, minimize disputes, and enhance financial discipline in real estate transactions.
1. Brokerage Fees Disclosure in Sale Agreements
MahaRERA’s order on October 22 requires that any brokerage, commission, or additional fees promised to a real estate agent by the developer or purchaser must be explicitly stated in the sale agreement. This provision will enable real estate agents to receive their fees on time, thereby minimizing payment disputes. According to industry experts, this order is expected to improve relations between agents and developers by setting clear expectations on brokerage payments.
2. Exemption from RERA Registration for Small Plots
On the same day, MahaRERA issued a clarification exempting projects on plots measuring 500 square meters or less from mandatory RERA registration, irrespective of the number of apartments constructed. This exemption could streamline development processes for small projects but may limit legal remedies for buyers in such developments, particularly in cases concerning project timelines and quality control.
3. Clarification on Certificates for Plotted Development Projects
A recent MahaRERA circular offers clear definitions for commencement and completion certificates specific to plotted development projects. According to the circular, a “commencement certificate” for plotted projects includes the final approval for land subdivision, referenced as Form D-3 in Maharashtra’s Unified Development Control and Promotion Regulations (UDCPR). The “completion certificate” will be granted only when the project meets the defined conditions in Form 4 of MahaRERA. This clarity is expected to provide potential buyers with increased transparency regarding project milestones in plotted developments.
4. Landlords Exempt from Multiple Bank Accounts Requirement
MahaRERA clarified on September 4 that landlords, unless considered project promoters, are not required to maintain three separate bank accounts. This order addresses previous confusion after MahaRERA mandated that all real estate developers maintain three bank accounts for each project to enforce financial discipline and timely project completion. This clarification helps ensure landlords are not burdened with regulatory requirements meant for developers.
5. Mandatory Parking Details in Agreements
To prevent disputes over parking spaces, MahaRERA recently mandated that all details related to parking must be included in the sale agreement and allotment letter. This order, issued on September 3, responds to complaints from homebuyers regarding inconvenient parking arrangements and obstructed parking spaces. Developers must now specify parking dimensions and conditions within the sale agreement, which is expected to reduce conflicts and increase transparency in residential developments.
Conclusion
These five regulatory measures by MahaRERA reflect a proactive approach to enhancing clarity and accountability within Maharashtra’s real estate sector. By establishing specific requirements and protections for all parties involved in real estate transactions, MahaRERA aims to foster a more transparent and dispute-free environment for homebuyers, agents, and developers.