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Understanding RERA: A Guide for Homebuyers in Maharashtra (MahaRERA)

The Real Estate (Regulation and Development) Act, 2016 (RERA) revolutionized property transactions in India by bringing transparency, accountability, and efficiency to a historically unstructured sector. In Maharashtra, MahaRERA enforces strict compliance guidelines on developers. This guide explores builder obligations, homebuyer rights, dispute resolution mechanisms, and delay compensation processes under the act.

1. Mandatory Project Registration

Under MahaRERA guidelines, all commercial and residential real estate projects where the land area exceeds 500 square meters or the number of apartments exceeds eight must be registered with the authority. Developers cannot advertise, market, book, sell or offer for sale any plot, apartment, or building without registration.

2. Escrow Account Rule (70% Fund Allocation)

To prevent developers from diverting buyers' funds to other ventures, RERA mandates that 70% of the money collected from buyers must be deposited in a separate bank escrow account. These funds can only be withdrawn for construction and land costs, certified by an architect, an engineer, and a chartered accountant in practice.

3. RERA Remedies for Delayed Possession

If a builder fails to complete or give possession of an apartment in accordance with the terms of the agreement for sale, homebuyers have two primary remedies under Section 18 of the RERA Act:

• Withdraw from the Project: Secure a full refund of the amount paid along with interest at the prescribed rate from the date of default.
• Continue with the Project: Claim monthly interest for every month of delay until possession is handed over.

How THE PHOENIX LEGAL Can Assist

Our expert property lawyers represent homebuyers and housing societies before the MahaRERA Authority, MahaRERA Appellate Tribunal, and Civil Courts. We handle builder-buyer complaints, recovery certificate executions, deemed conveyance registry files, and redevelopment contract audits to protect your hard-earned investments.