Navigating the Real Estate Landscape: An Overview of MahaRERA Compliance and Key Regulations
MahaRERA Compliance and Key Regulations
Since its establishment on May 1, 2017, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has fundamentally transformed the real estate sector, creating a framework centered on transparency, accountability, and customer protection. Based on the provisions of the Real Estate (Regulation and Development) Act, 2016, MahaRERA operates under 10 Chapters and 92 Sections, dictating the rules of engagement for all market participants.
Defining the Key Players: Promoter vs. Allottee
The RERA framework clearly defines the roles and responsibilities of the parties involved in a real estate transaction:
- Promoter: This term encompasses anyone who sells plots, flats, villas, bungalows, or land. It includes both the builder/developer and the real estate agent/broker (sometimes called a channel partner).
- Allottee: This is the buyer—the individual or entity purchasing the real estate unit mentioned above.
Mandatory Registration and Financial Discipline
MahaRERA compliance begins at the very start of a project, and agents play a crucial role.
Project Registration is Mandatory
To safeguard consumer interests, any real estate project exceeding 500 square meters of land area or having more than 8 apartments (in all phases) must be registered with MahaRERA before any form of marketing or advertising begins.
A few exemptions exist, such as projects that received a completion certificate before the Act commenced, or small projects meeting the area/apartment thresholds, or minor renovation/repair projects without new selling.
Financial Rules for Promoters
Financial integrity is one of the five key pillars of MahaRERA. Promoters must adhere to strict guidelines:
- Advance Payment Limit: A promoter cannot accept more than 10% of the apartment or plot cost as advance payment or application fee without first executing and registering an Agreement for Sale.
- The 70% Separate Account Rule: A minimum of 70% of all money collected from allottees must be deposited into a separate, dedicated bank account. These funds can only be used for the cost of construction and land. Withdrawals must be certified by an engineer, an architect, and a chartered accountant, and must be proportionate to the percentage of project completion.
- Mandatory Audit: An annual audit of the project account is compulsory to ensure compliance with these financial rules.
The Critical Role of Real Estate Agents
MahaRERA has formalized the role of real estate agents, recognizing them as an indispensable part of the transaction process.
Training, Exam, and Registration
To ensure professionalism and knowledge, the MahaRERA Training and Exam is compulsory for all Brokers, Agents, and Channel Partners.
- Validity and Renewal: An agent’s registration is valid for 5 years. Renewal must be applied for at least 60 days before expiry, and a successful renewal is valid for another 5 years.
- Registration Fees: The fee is ₹10,000 for an individual agent and ₹1,00,000 for a non-individual entity (company, partnership, etc.).
Penalties for Non-Compliance
The penalties for violating MahaRERA rules are severe and are designed to deter malpractice:
| Violation | Promoter Penalty | Agent Penalty |
| Project Non-registration | Up to 3 years imprisonment + 10% of the project cost as fine | N/A |
| Facilitating Sale Without Agent Registration | N/A | ₹10,000 per day, up to 5% of the cost of the property facilitated |
| Non-compliance with Authority Orders | 5% of the project cost | ₹10,000 per day |
| Non-compliance with Tribunal Orders | N/A | Up to 1 year imprisonment |
Export to Sheets
An agent’s registration can also be revoked for grounds such as breach of the Act, providing false information, or engaging in unfair trade practices.
Key Consumer Protections and Obligations
MahaRERA is inherently Customer Centric, focusing on protecting the allottee’s interests.
Defect Liability Period
Promoters have a 5-year defect liability period from the date of handing over possession. During this time, the promoter is obligated to rectify any structural defects or workmanship issues free of charge, within 30 days of a complaint.
Allottee Obligations
Protection comes with responsibility. Allottees must also:
- Make payments strictly as per the agreement schedule.
- Pay their share of applicable taxes and maintenance charges.
- Take possession of the unit within 2 months of the Occupancy Certificate (OC) being issued.
- Participate in the formation of the association and registration of the conveyance deed.
Dispute Resolution
For any disputes arising from the Authority’s orders, an appeal can be filed with the MahaRERA Appellate Tribunal (MahaREAT). The time limit for filing an appeal is 60 days from the date of receiving the order.
The entire framework of MahaRERA is built on the five key pillars of Transparency, Accountability, Financial Discipline, Customer Centricity, and Compliance, ensuring a more professional and equitable real estate market for everyone.
