by THO
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued guidelines on things homebuyers should consider before buying a house. The MahaRERA said these guidelines have been brought out to ensure that homebuyers do their due diligence before investing in a property.
According to the guidelines issued by MahaRERA, homebuyers should check if the project plans have received approvals from the local planning authority and the commencement certificate detailing the permissions received to construct up to which floor is in place. Homebuyers should also do their due diligence concerning any litigations against the project and encumbrances and check for the plot’s title clearance report.
MahaRERA said that homebuyers should ensure that the agreement format for sale and allotment letter contains details of parking, facilities, and amenities as per the draft approved by MahaRERA.
“Homebuyers should note 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,” MahaRERA said in the statement on January 23.
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According to MahaRERA, homebuyers should deal only with registered real estate agents. They should also remember that developers follow financial discipline by keeping 70% of the money received from the project in an escrow account.
MahaRERA further listed several obligations of real estate developers, including periodical updates. The developer must submit the project’s progress report to MahaRERA quarterly. The homebuyer should monitor the project’s progress through MahaRERA’s website and contact MahaRERA in case of a complaint against the developer.
Things homebuyers should keep in mind before entering into an agreement for sale
According to MahaRERA, developers must mention details of the flat number, carpet area, and project’s completion date in an annexure to the Agreement for Sale and Allotment Letter and provide detailed information on parking slots and amenities offered in the project.
This annexure must contain details on the parking space offered, whether it is a garage, stilt parking, mechanical, or open, the dimension of the parking slot, and the precise location of the parking space. Regarding the facilities and amenities in the project, the annexure of the agreement for sale should mention the list of facilities/amenities that have been promised and will be made available and their completion date, MahaRERA said in the statement.
Here’s how buyers should check if the project has a valid MahaRERA registration
The MahRERA said registration of MahaRERA registered projects that do not adhere to the rules and fail to submit compliance reports detailing the project’s latest status have been suspended despite the project’s completion. Bank accounts for such projects are frozen, and all the transactions linked with that project have been put on hold. MahaRERA regularly issues such a list on the website, and the homebuyers should go through them to make an informed decision.
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“MahaRERA has always been striving to provide homebuyers with a legally and financially protected home-buying experience. However, there is always a possibility of certain challenges that may arise during the project’s execution. To pre-empt this, stringent legal, technical and financial scrutiny of each proposed housing project is undertaken before issuing the registration number,” said Manoj Saunik, Chairman of MahaRERA.
“Some of the scrutiny processes includes plot’s ownership on which the project will be built, dispute if any, details of the real estate agents, approvals from the local planning authority, commencement certificate mentioning a total number of floors permitted. I urge the homebuyers to insist the developers furnish the details; thereafter, homebuyers should carefully study these in entirety before booking or buying a property,” Saunik added.
