FAQs for MahaRERA Website

General FAQs

1. What are the objectives and reasons for the Real Estate (Regulation and Development) Act 2016?

Ans: The Real Estate Act aims to:

• Ensure accountability towards allottees and protect their interests.
• Infuse transparency, ensure fair-play, and reduce frauds & delays.
• Introduce professionalism and pan-India standardization.
• Establish symmetry of information between the promoter and allottee.
• Impose certain responsibilities on both promoter and allottees.
• Establish regulatory oversight mechanisms to enforce contracts.
• Establish a fast-track dispute resolution mechanism.
• Promote good governance in the sector, thereby creating investor confidence.

2. Which areas of Maharashtra are included in the Planning Area as defined in the Act?

Ans: The MR & TP Act is applicable to all districts of Maharashtra as per notifications issued by the Urban Development Department. Hence, all areas of Maharashtra are included in the Planning Area as defined in Section 2(zh) of the Act.

3. Does the definition of ‘promoter’ include public bodies such as Development Authorities and Housing Boards?

Ans: Yes, the Act covers all bodies (private and public) developing real estate projects for sale to the public. Section 2(zk) includes both private and public real estate promoters.

4. If a real estate project has land area more than 500 sqmts but contains less than 8 apartments, does it still need to be registered?

Ans: Yes, any real estate project with a land area exceeding 500 sqmts or having more than 8 apartments must be registered.

5. If a real estate project has a land area less than 500 sqmts but contains more than 8 apartments, does it still need to be registered?

Ans: Yes, projects with either more than 500 sqmts of land or more than 8 apartments need to be registered.

6. Does advertisement include solicitation by emails and SMS? Is issuance of a prospectus considered an ‘advertisement’?

Ans: Yes, as per section 2(b), any medium soliciting sales, including SMS and emails, is considered an advertisement. A prospectus intended for the sale of apartments is also covered.

7. Can advertisements be issued for a new project after 1st May 2017 without registering the project?

Ans: No, advertisements issued after 1st May 2017 must carry the MahaRERA Registration Number of the project.

8. Does the term ‘allottee’ include secondary sales?

Ans: Yes, as per section 2(d), an allottee includes a person who acquires an apartment/plot through transfer or sale, excluding rental projects.

9. Is it permissible to sell parking to allottees?

Ans:

• Open Parking Area: Included in “Common Areas” and cannot be sold by the promoter.
• Covered Parking: Permitted to be sold as per the Maharashtra Real Estate Rules, 2017.
• Garage: Permitted to be sold as defined in the Act.

10. What is the promoter’s obligation towards the return of amount and compensation to the allottee?

Ans: Section 18 of the Act outlines provisions for compensating the allottee due to delays in project completion.

11. Can a complainant approach both the Regulatory Authority/adjudicating officer and the consumer forums for the same disputes?

Ans: An aggrieved person can only approach one of the two forums for grievance redressal.

12. Is there an additional fee for promoters, real estate agents, and complainants for the MahaRERA website uploading and online services?

Ans: Yes, as detailed in the MahaRERA Order available on the MahaRERA website.

FAQs from Consumer’s Perspective

13. Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to MahaRERA?

Ans: Yes, the layout must be approved. However, the promoter may include some buildings in the registration application where apartment approvals are pending.

14. What is the penalty for non-registration of a project under the Act?

Ans: The promoter is liable to a penalty up to ten per cent of the estimated project cost and may face imprisonment for continued violations.

15. How will a flat buyer know if the real estate project is registered under MahaRERA?

Ans: The MahaRERA website displays all registered projects, and advertisements must carry the MahaRERA registration number.

16. Is the registration of real estate agents project-specific, location-specific, or individual-specific?

Ans: Agents must register either as individuals or as “other than individuals” and their names will be displayed along with project details on the MahaRERA website.

17. What penalties would a Real Estate Agent face for failing to adhere to MahaRERA mandates?

Ans: Agents failing to register or contravening sections 9 or 10 of the Act face penalties of ten thousand rupees per day, up to five per cent of the project cost.

18. Is the promoter required to give an undertaking to MahaRERA for completing the project within a specified period?

Ans: Yes, the promoter must give a declaration supported by an affidavit indicating the completion time frame.

19. If a project’s registration is revoked, how will MahaRERA protect the buyer’s interests?

Ans: MahaRERA will act in accordance with section 8 of the Act.

20. Will buyers be entitled to interest for delayed possession from the promoter?

Ans: Yes, the promoter must pay interest for delays as specified in the model agreement.

21. Will the interest payment be automatic, or must the buyer approach MahaRERA?

Ans: Interest should be automatically paid according to the model agreement. Buyers may file a complaint if there is a grievance.

22. Is there a ceiling on the interest levied by the promoter for payment defaults by the allottee?

Ans: Yes, interest is capped at the State Bank of India’s highest Marginal Cost of Lending Rate plus two percent.

23. What are the provisions for lodging a complaint?

Ans: Section 31 of the Act and Rule 6 outline the process for filing a complaint online with MahaRERA.

24. Can a promoter or real estate agent file a complaint against a buyer?

Ans: Yes, any aggrieved person with an interest in the project can file a complaint.

25. Is interim relief available pending the final adjudication of a complaint?

Ans: The procedure for interim relief is detailed in section 36 of the Act.

26. Where should an aggrieved home buyer file a complaint?

Ans: Complaints can be filed online via the MahaRERA website.

27. On what grounds can a home buyer file a complaint?

Ans: Complaints can be filed for any violation of the Act, Rules, or Regulations.

28. Who decides the complaints?

Ans: Complaints are decided by a single bench of either the Chairperson or any Member of the Authority as per Regulation 24.

29. Is there a pecuniary jurisdiction for complaint handling authorities?

Ans: No, but geographical jurisdiction may be specified.

30. Is there a time limit for disposing of complaints?

Ans: Complaints should be disposed of within sixty days unless reasons are recorded for delays.

31. Is filing a complaint in Consumer Court barred under the Act?

Ans: No, consumer forums are not barred, but civil courts are for matters under the Act.

32. Is there an appeal process against MahaRERA orders? What are the fees and time limits?

Ans: Appeals can be filed within sixty days as per Rule 9, and fees are in accordance with the Rules.

33. Is there a time limit for forming a society or other legal entity for home buyers?

Ans: Promoters must enable the formation of a legal entity within three months once 51% of purchasers have booked their apartments.

34. Is there a time limit for executing conveyance in favor of the association of buyers?

Ans: Promoters must execute a conveyance deed within three months from the occupancy certificate or when 51% of purchasers have paid the full consideration, whichever is earlier.

FAQs from Promoter’s Perspective

35. How does the Act impact joint promoters or joint ventures in real estate projects?

Ans: Both promoters and landowners in joint ventures are considered Co-Promoters and must adhere to the Act’s provisions.

36. How does a promoter apply for registration?

Ans: Promoters can apply online via the MahaRERA IT solution, filling out forms, uploading documents, and paying fees.

37. Is registration compulsory immediately after receiving sanctions?

Ans: Yes, promoters must register before advertising, marketing, booking, or selling any units.

38. Must ongoing projects stop sales or construction until receiving registration?

Ans: Yes, ongoing projects must cease sales or marketing until registered.

39. Can promoters change the completion date for ongoing projects during registration?

Ans: Yes, promoters must provide a revised completion date during registration.

40. Is the Act applicable to all units of a registered project or only units sold after registration?

Ans: The Act applies to all units of the registered project/phase.

41. Can allottees with pre-registration agreements file complaints with MahaRERA?

Ans: Yes, allottees with pre-registration agreements can file complaints for violations of the Act.

42. Can promoters change plans for subsequent phases after registering the first phase?

Ans: Yes, but consent from allottees is required for registered phases.

43. Do promoters need consent from pre-registration allottees to change plans post-registration?

Ans: Yes, consent is required from all allottees, including those with pre-registration agreements.

44. How should promoters handle common amenities with phased development?

Ans: Promoters must meticulously plan and declare possession dates for buildings and common areas in each phase.

45. Is project insurance compulsory? What are the provisions?

Ans: Insurance is compulsory once notified by the State Government. Promoters must obtain insurance for the title and construction of the project.

46. Can project finance be withdrawn from the designated 70% account?

Ans: Yes, if declared during registration and used for construction expenses.

47. Can landowners withdraw their share from the designated account in joint developments?

Ans: Yes, both promoters and landowners must adhere to the Act’s provisions for withdrawals.

48. Must funds collected for various charges be deposited in the designated 70% account?

Ans: Yes, these funds are part of the project cost.

49. When must promoters form a society or association?

Ans: Promoters must form an association within three months once 51% of allottees have booked their apartments.

50. Can promoters build additional floors with additional FSI post-registration?

Ans: Yes, but consent from allottees is required.

51. Does MahaRERA recognize the Maharashtra Ownership Flats Act and Apartment Ownership Act?

Ans: Yes, but the Central Act prevails in case of inconsistencies.

52. How will promoters receive ID & password for deemed registration?

Ans: MahaRERA will provide the registration number within seven days of deemed registration.

53. How does the Act affect advertisement of projects with multiple phases?

Ans: Only registered phases can be advertised. Promoters cannot advertise amenities or facilities in unregistered phases.

54. Must adjoining land purchases be registered separately?

Ans: Yes, adjoining land not part of the registered project must be separately registered.

55. Are promoters liable if specified fixtures and fittings are unavailable?

Ans: Promoters must obtain prior consent from concerned allottees for any changes.

56. Is a project exempt from registration if Part OC is received?

Ans: No, it must still be registered.

57. Should estimated costs include future expected areas?

Ans: Estimated costs for the entire project must be indicated during registration.

58. Are various certificates required at the time of registration?

Ans: Yes, as per Forms 1, 2, and 3 of Maharashtra Real Estate Regulatory Authority (General) Regulations 2017.

59. Should certificates be submitted to the banker or retained by the promoter?

Ans: Original certificates must be retained by the promoter and may be submitted to the bank if required.

60. Can an escrow account be treated as a separate bank account for a registered project?

Ans: No, a separate bank account must be opened as per the Act’s provisions.

61. Can there be multiple designated accounts for a project with multiple lenders?

Ans: No, there should be one designated bank account per registered project or phase.

62. Can buyers give undertakings to pay more than 10% without registering?

Ans: No, the Act prohibits taking more than 10% without a registered sale agreement.

63. Are referral bookings treated as Real Estate Agents?

Ans: Yes, if referrals are made for consideration.

64. Do foreign brokers need to register for advertising outside India?

Ans: Yes, if it pertains to a registered project under MahaRERA.

65. Can developers selectively cancel units for customer defaults?

Ans: Termination provisions are covered in the Model Form of Agreement.

66. Are internal changes at the customer’s request treated as major changes?

Ans: Refer to section 14 of the Act for major change approvals.

FAQs from Real Estate Agent’s Perspective

67. Who needs to apply for registration for broking business in Real Estate?

Ans: Every real estate agent intending to facilitate sales or purchases in registered projects must apply for registration with MahaRERA.

68. What is the procedure to obtain registration as a Real Estate Agent?

Ans: The procedure is detailed in Rule 11 of the Maharashtra Real Estate Rules 2017.

69. What are the registration fees and duration?

Ans: Fees are as per Rule 11(3) and registration is valid for five years.

70. Do marketing and sales staff of builders need to register as agents?

Ans: Yes, if they fall under the definition of a real estate agent per Section 2(zm) of the Act.

71. Is MahaRERA registration valid in other states?

Ans: No, it is valid only for Maharashtra.

72. Is registration transferable to another agent or state?

Ans: No, registration is not transferable.

73. Are agents liable for builder’s defaults if they haven’t taken commission from clients?

Ans: Agents are liable if involved in the transaction, regardless of where the commission comes from.

74. Can agents sell in projects if not listed with promoter’s registration on the MahaRERA website?

Ans: No, agents must be listed and registered.

75. Will MahaRERA protect agents’ commissions from builders or parties?

Ans: No, this is governed by agreements between agents, promoters, and allottees.

76. Are agents responsible until delivery of flats or registration of documents?

Ans: Agents’ responsibilities are as per Section 10 of the Act.

77. What are the penalties for non-registration and contravention of provisions?

Ans: Penalties are detailed in Section 62 of the Act.

78. What are unfair trade practices?

Ans: Defined in Section 10(c) of the Act.

79. Are agents liable for false information provided by promoters?

Ans: Agents are liable for their actions under Section 10 but not for the promoter’s defaults.

80. Do listing websites, newspapers, and exhibitions need an agents’ license?

Ans: Yes, if they facilitate sales.

81. Do digital media listings by builders/agents need MahaRERA approval?

Ans: No, but the project must be registered.

82. Do agents need to get their promotional content approved?

Ans: No, but they must ensure the project is registered before advertising.

83. Is deemed registration possible if not granted within 30 days?

Ans: Yes, if no communication is received about deficiencies within 30 days.

84. Do entities need to apply separately for staff registration?

Ans: No, staff operating under the entity’s aegis do not need separate registration.

85. Do multi-state operators need to apply in each state?

Ans: Yes, they must register in each state.

86. Are agents authorized to sign on behalf of promoters/builders?

Ans: No, agents cannot sign on behalf of promoters/builders.

Additional FAQs regarding IT Application

1. Is there a file size limit and specific format for document uploads?

Ans: Yes, the file size limit is 1MB per file, and only PDF files can be uploaded.

2. Where can I get the template for “Declaration in Form B”?

Ans: Available on the MahaRERA website. The Declaration in Form B should be an affidavit on a minimum 100 Rupees and duly notarized.

3. Where can I get templates for Certificates (Forms 1, 2, 3, 4, and 5)?

Ans: Templates are available in Maharashtra Real Estate Regulatory Authority (General) Regulations 2017 on the MahaRERA website.

4. What should be uploaded if a project has no encumbrances?

Ans: Upload a self-certification stating that the project has no encumbrances.

5. Whose PAN Card should be uploaded in the Online Registration Form?

Ans: Individual users should upload their PAN Card; organizations should upload the organization’s PAN Card.

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