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7. Can advertisement be issued for a new project after 1st May, 2017 \Vith
011
registering the said project? t
Ans: No. The advertisement issued after 1st May 2017 must carry the MahaRERA
Registration Number of the project.
10. What is the obligation of the promoter towards return of amount and
compensation to the allottee?
Ans: Section 18 of the Act provides for provisions as regards various situations in which
the allottee would be compensated by the promoter due to delay in completion of the
project etc.
12. Is there some fee, in addition to the fees prescribed in the Rules, to be
charged from promoters, real estate agents and complainants for the
MahaRERA website uploading and online services?
Ans: Yes. It has been detailed in the MahaRERA Order available on the MahaRERA website.
Frequently Asked Questions
255
FAQs from Consumer's Perspective
JJ, inandatory for the promoter to obtain permissions for the real estate
13. Js it t before applying for registration to MahaRERA?
roJec al · h
P s the layout of the . re_ es~ate _pro3ect_ a~ to be a~prov~d. However, the promoter
_t111-s: Ye , . lude some buildings m his apphcat10n of registratwn where apartments are
rnaY in~ and the Building approvals are pending. Building Approval for the apartment
propos;
st obtained before the agreement for sale is signed between the promoter and
rnu e arding the said apartment.
buyer, reg
~t:e
conttnu "th fi h" h
d up to three years or wt ne w ic may extend up to a further ten per cent
estimated cost of the real estate project, or with both.
15 J{ow will a flat buyer know, if the real estate project is duly registered
· under MahaRERA?
Ans: The MahaRERA website would display all the registered projects.
It •s mandatory that the advertisement for marketing of apartments in the real estate
pr~ject must carry the MahaRERA registration number.
17. What are the penalties that a Real Estate Agent would face if he fails to
adhere to the mandates prescribed by MahaRERA?
Ans: If any real estate agent fails to register and contravenes the provisions of section 9 or
section 10 of the Act, he shall be liable to a penalty of ten thousand rupees for every
day during which such default continues, which may cumulatively extend up to five
per cent of the cost of plot, apartment or buildings, as the case may be, of the real
estate project, for which the sale or purchase has been facilitated as determined by
MahaRERA.
18
· Is the promoter required to give any undertaking to MahaRERA for
A completing his project within a specified period?
ns:fiYes ' in accordance with the provisions of the Act, the promoter, w h 1"l e app 1ymg·
.odr. registration to MahaRERA ' has to 1:>•
111 IC tin
cnve a declaration, supported by an affidavit,
a ag the
th ereof time period within which he undertakes to complete the project or phase
8 th
' e case may be.
i 256
The Real Estate (Regulation and Development) Act, 2016
If the registration of a real estate project is revoked for any reason, how
19 · will the interest of the buyer, in such project, be protected by MahaRERA?
Ans: MahaRERA will take action in accordance with section 8 of the Act.
o. In case of delay in getting possession from the promoter, will the buyer be
2 entitled to get interest on the amount paid by him, for such delayed period?
Ans: Yes. In accordance with the model form of agreement, if the Promoter fails to abide
by the time schedule for completing the project and handing over the (Apartment/
Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to
withdraw from the project, interest as specified in the Rule, on all the amounts paid
by the Allottee, for every month of delay, till the handing over of the possession.
21. Will such interest payment by the promoter to the buyer be automatic or
the buyer will have to approach MahaRERA?
Ans: The interest payment is in accordance with the model form of agreement and hence
should be automatically paid. The buyer may have to file a complaint to MahaRERA
if there is a grievance.
22. Is there a ceiling on the interest to be levied by the promoter in case of
default in payment of any instalments by the allottee/buyer?
Ans: In accordance with the model form of agreement, the Allottee has to pay to the
Promoter, a rate of interest equal to the State Bank of India highest Marginal Cost of
Lending Rate plus two per cent, on all the amounts which become due and payable
' I by the Allottee to the Promoter under the terms of the Agreement from the date the
said amount is payable by the allottee(s) to the Promoter.
23. What are the provisions for an aggrieved person to lodge a complaint?
Ans: Section 31 of the Act and Rule 6 of Maharashtra Real Estate (Regulation and
Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms
of Complaints and Appeal, etc.) Rules, 2017 provide for filing of complaint with
MahaRERA, by an aggrieved person who has any interest in the registered project. The
aggrieved person can file an application online as per format provided by MahaRERA.
It shall include the following details:
Registration number of the project to which the complaint pertains
Particulars of the complainant and respondent
Facts of the case
Relief Sought
List of Enclosures and so on
24. Can a promoter or a real estate agent also file complaint against a buyer?
Ans: Yes. An aggrieved person having any interest in the registered real estate project can
file complaint.
25. Is . th~re any provision for interim relief to be granted, pending the final
adJud1cation of the complaint?
Ans: !he pr~cedure to be followed by MahaRERA while adjudicating a complaint is detailed
m section 36 of the Act read with Rule 6(2) of Maharashtra Real Estate (Regulation
Frequently Asked Questions
31. If the buyer wants to file a complaint in Consumer Court, is there any bar
under the Act?
Ans: No. As per section 79 of the Act, civil courts are barred from entertaining disputes
(suits or proceedings) in respect of matters which Real Estate Regulatory Authority
or the adjudicating officer or the Appellate Tribunal is empowered under the Act to
determine. However, the consumer forums (National, State or District) have not been
barred from the ambit of the Act. Section 71 proviso permits the complainant to
withdraw his complaint as regards matters under section 12, 14, 18 and section 19,
from the consumer forum and file it with the adjudicating officer appointed under the
Act.
32
· Is there appeal provided against the orders given by MahaRERA? Is there a
ti111e li111it? What are the fees?
Ans: Any P_erson aggrieved by any direction or decision or order mad~ by M~~RA or . by
an ~d.Judicating officer may file an appeal before the Appellate Tribunal wtthin penod
of suety days, in accordance with Rule 9 of Maharashtra Real Estate (Regulation and
Development}
Com I . (Recovery of Interest ' Penalty' Compensation, Fine payable, Forms of
P atnts and Appeal, etc.) Rules, 2017.
• 258 The Real Estate (Regulation and Development) Act, 2016
33. Is there any time limit prescribed for the promoter for formation of society
or any other legal entity of home buyers?
Ans: Promoter has to enable formation of Legal Entity like Cooperative Society, Company
Association, Federation etc. within three months from the date on which fifty one pe'
cent of the total number of Purchasers, in such a building or a wing, have booke~
their apartment.
34. Is there a time limit prescribed for the promoter to execute conveyance in
favour of the association of buyers?
Ans: Promoter shall execute a registered conveyance deed in favour of the allottee within
three months from date of issue of occupancy certificate or fifty one per cent of
the total number of Purchasers, in such a building or a wing, has paid the full
consideration to the promoter, whichever is earlier.
38. Will ongoing Project have to stop sales or construction till receiving the
Registration?
Ans: At the end of ninety days from the date of notification of Section 3 of the Act, the
promoter of an ongoing project shall not advertise, market, book, sell or offer for sale
or invite persons to purchase in any manner any plot, apartment or building, unless
he registers the project.
39. Can promoter change the completion date for ongoing projects while
registering?
Ans: Yes, while registering project, promoter needs to give revised date of completion which
should be commensurate with the amount of development completed.
Q
Frequ.en1ly Asked Questions
259
ongoing project is registered under MahaRERA
4o. If ~:cable for the entire project or wW it be applfo~blth en Will the Act be
apP registration?
after . e only to units •old
. tration is of the ProJect/Phase and hence the provisions
,4ris: Regtalls units of the Project/Phase. of the Act are applicable
to
8 n allottee who has executed agreement with th
41. can ing project getting registered with the A th ei promoter prlor to the
on go•• haRERA? u or ty, be a complainant
before tY&a .
RERA empowers any aggrieved person to file a . .
,4ris: Ma~~ red real estate project. This will include an all ~~mpl~nt with respect to a
regis ;ed before the project is registered with MahaRE~ e~ w O has an agreement
execuauthority to adjudicate for violations and contraventi~n orever: _MahaRERA will
havete (Regulation and Development) Act or rules and r 1 ti? proV1s1ons of the Real
Esta egu a ons made thereunder.
the promoter change the plans of subsequent ph ft
42. ofCanthe 1st p h ase ? . . ases a er registration
. The Act puts an obhga~10~ on a promoter to obtain consent of each allottee if he
Ans- wants to change the b~lldmg plans for the phase that is registered. If a subs~quent
phase has not been r~~stered, the promoter can change the plans of the subsequent
ha ses without obtammg consent of the allottees from current/ . h
P h ongoing p ases.
However, if the subsequent p ases are also registered, consent of allottees f th
concerned phases, would be needed as mentioned in section 14 of the Act. ' 0 e
44. The promoter can hand over the common amenities only after completing
subsequent phases. What should he commit to the customer for the
registered phase?
Ans: A promoter should meticulously plan the buildings of the registered phase & common
areas and then declare the individual date of handing over possession of the building
& common areas. Each phase along with the development works shall have to
completed and handed over to the allottee within the time frame defined by the
promoter, during registration, for that phase of the project.
45
· Is insurance of the project compulsory? What are the provisions regarding
Insurance?
Ans: Promoter has to obtain all such insurance as notified by the State Government.
So insurance will be compulsory only after the Notification is issued by the State
?overnment. The Act says that the State Government can prescribe various types of
Insurance including but not limited to,-
a) Title of the land and building as a part of the real estate project; and
b) Con t ·
s ruction of the real estate project.
260 The Real Estate (Regulation and Development) Act, 2016
The promoter is liable to pay the insurance premium before transferring the sam
the allottee/association of allottees. The documents related to insurance will ha/ to
be handed over to the association of allottees when the same is formed. e to
47. In case of joint development with land owner on revenue share basis or
area share basis, whether land owner's component could be withdrawn from
designated account of 70%?
Ans: The Act makes both the Promoters and the land owner or any such parties which are
beneficiary of a sale of a project and receive payments from allottees, as Co- Promoters
and hence liable to adhere to the provisions of the Act and Rules and Regulations
made thereunder. The withdrawal of money would be subject to provisions of Section 4
of the Act and the Maharashtra Real Estate (Regulation and Development)(Registration
of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and
Disclosures on Website) Rules, 2017 made thereunder.
48. Whether money collected from allottees towards stamp duty, registration,
\ '. ii share money for society, deposits for maintenance, corpus funds,
i'. infrastructure charges, parking charges etc., are required to be deposited in
f, ::
the designated bank account (70 %)?
!: : :,:'
'I Ans: Yes, since these are part of the project cost.
t\ :I
49. When does the promoter need to form society, association etc.?
' ,, Ans: The Promoter has to ensure that an association of allottees is formed within three
< months of 51 % of allottees have booked their apartment in the project.
52. There is a provision for deemed registration of a real estate project in case
the Regulatory Authority does not respond to the application. How will the
promoter receive ID & password?
Ans: In accordance with the Act, MahaRERA shall within a period of seven days of the
deemed registration, provide registration number.
r:rdl
- Freqtientzy-Asked Questions
261
'W'ill the Act, Rules and Regulations affect advertisement r
5 3 . Jlo'W'ith JJlanY phases? 0 projects
'111 znoter would be allowed to advertise, market, book sell or offer t . .
,4ris: ,A prons to purchase plot, apartment or building in a phase of a real o stet 11 or ~VIte
Perso'f the said . p h ase is
· regis
· t ere d . A promoter cannot adverti es a e. proJect •
only i . . . th t . b se, commit or sell
·o·es or facilities a are m a su sequent phase which is still n t .
arneni o registered.
t if an adjoining land is purchased by the promoter? Can h
\VJla same registration?
54 . ,,,ith . . . e continue
. N0 it has to be separately _registered if the said adjoining land was not a part f th
,4,is. •. t which has been registered. 0 e
proJec
\Vhat should the promoter do in case the particular brand of fixtures and
55. fittings as mentioned in the specifications are not available in the market
since the production of that type fs stopped by the supplier? Will the
romoter still be Hable fn such case? And what in case fixture/fittings do
!ot give guarantee for more than five years.
ns· In accordance with section 14 of the Act, the promoter should take previous consent
A · of the concerned allottee.
56, What if Part OC is received for the project: is it exempt from registration?
Ans: No.
57 Estimated Cost should be submitted only for area for which approvals/plans
· cleared as on date of registration of project or it should also include costs
even for the proposed future expected area to be generated? (Bearing in
mind the pros and cons for the figures depending solely on estimated costs)
Ans: Estimated cost of the whole project that has been put up for registration has to be
indicated while applying for registration.
58. Registration: Are various certificates (Architect, Engineer, and CA) required
at the time of registration?
Ans: Please refer to the Forms 1, 2 and 3 of Maharashtra Real Estate Regulatory Authority
(General) Regulations 2017.
59. Does developer need to submit the certificates to Banker or retain with
him?
Ans: The original certificates have to be retained by the promoter because the same are
required to be verified and audited by the statutory auditor of the promoter's company
at the end of every financial year. Copies may also have to be submitted to the
concerned bank, if demanded by them
60
· Separate Bank Account: can escrow account opened with the bank from
;hom loans are availed, be treated as
Separate Bank Account for a
A~: NoahaRERA registered project. . . . .
· A separate bank account needs to be opened m accordance with the proV1s10ns of
tbe Act and rules made thereunder.
. ~
262 The Real Estate (Regulation and Development) Act, 2016
61. Can separate account be more than one since at times there might be
multiple lenders in same project (building-wise lender} though developer
might register the project at one go.
Ans: No. There should be one designated bank account for every registered project or
registered phase of a project.
63. Referral bookings: Existing customers referring to others for buying the flat
in same project or other project of same developer: will they be treated as
Real Estate Agent?
Ans: Yes, if it is against a consideration. Real Estate Agent is clearly defined in section
2(zm) of the Act
64. For Foreign brokers registration and advertisement outside India, will same
rule apply as in India ?
Ans: Yes, if it pertains to a registered project under MahaRERA.
66. Internal changes: assuming making a duplex at customers request: will this
be treated as Major change and require approval of other allottees?
Ans: Please refer to section 14 of the Act
E\'en i f real estate agent has hnot taken any commission 1irom cIient and
13. taken it from promoter, can t e agent still be responsible and liable for
builder's defau_l~? . . .
. The agent's liability is m accordance with Section 10 of the Act. He is not held liable
An5• for the promoter's default.
76. Will agent be responsible till the delivery of flats / real estate unit done or
is he responsible till documents are registered?
Ans: The responsibility of the real estate agent will be in accordance with Section 10 of the
Act.
~:d
What if promoter gives false information or documents to real estate agent
Ans: agent . acts upon such information, will he be liable? . .
der Sect10n 12 of the Act it is the obligation of the promoter regarding veracity of
ardVerti sement and prospectus.
' The agent is liable if he m akes a ii:tise • I
"- 1 or mis ead.mg
epresentarion concerning the services that he intends
· ffi
to o er.
L
264 The Real Estate (Regulation and Development) Act, 2016
82. Will real estate agents putting advertisement on builders' behalf need to et
approved his print/radio/TV/other media promotions content? g
Ans: No, however no advertisement should be put out for a project unless the concern d
promoter has registered the project with MahaRERA. The agent should not adverti:
for services that are not intended to be offered. e
84. Does an entity "Other than an Individual", who has applied and paid
registration fees, need to apply separately for its staff?
Ans: No, as long as the staff operate under the aegis of the said entity.
85. Will a multi-state operator of real estate agency business need to apply in
all state of India?
Ans: For working as a real estate agent in Maharashtra, registration will be given by
' ,. MahaRERA.
' ,1
Disclaimer:
The views expressed herein are of the Secretariat and may not necessarily be the views
of the MahaRERA Authority.
Our response is based solely on the understanding provided to us. We assume, for
the purpose of this response that all facts provided to us are accurate and correct. Any
differences or inaccuracies in the facts, assumptions and representations could adversely
affect our conclusions in this response.
Further, our response should strictly be construed in adherence to the provisions of
the Real Estate (Regulation and Development) Act 2016 and Rules and Regulations made
thereunder.