Mumbai, Maharashtra: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently issued a series of critical directives designed to protect the interests of homebuyers, landlords, and real estate agents. These new orders address a range of issues, from ensuring timely brokerage payments to clarifying regulatory requirements for small plot developments and banking norms for landlords. Here’s a breakdown of the recent changes that are expected to streamline property transactions across Maharashtra.

Timely Brokerage Payments: A New Assurance for Real Estate Agents

To reduce disputes and ensure that brokers receive their promised commissions, MahaRERA’s latest mandate requires developers to include brokerage and commission details within the property sale agreement. This ensures that real estate agents receive their fees on time without conflicts or delays.

The new order, issued on October 22, specifically mandates that any transaction facilitated by a registered real estate agent must clearly outline the payment details for commissions, including taxes, in the sale agreement. This regulation applies whether the brokerage is paid by the developer, buyer, or both parties. Industry insiders believe this move will significantly reduce payment-related conflicts and boost transparency in real estate dealings.

Exemption for Small Plot Developments: No RERA Registration for Plots Under 500 sq m

MahaRERA has also clarified its stance on the registration requirements for small-scale developments. The authority has declared that projects built on plots of 500 square meters or less are exempt from RERA registration, regardless of the number of units constructed.

While this exemption might ease the regulatory burden on smaller projects, legal experts warn that it may limit options for buyers seeking redressal in cases of delays or non-compliance. They advise prospective buyers of small plot developments to be cautious and conduct thorough due diligence, as these projects may lack the same regulatory oversight as larger developments.

Defining Key Certifications for Plotted Developments

A recent MahaRERA circular brings clarity to the certifications required for plotted development projects, which are governed under the Unified Development Control and Promotion Regulations (UDCPR) for Maharashtra. This directive defines both commencement and completion certificates for such projects.

The authority has specified that the approval of a land subdivision layout in Form D-3, or a similar non-agricultural permission, will be regarded as a valid commencement certificate for plotted projects. For completion, the certificate must include start and end dates, as well as conditions outlined in MahaRERA’s Form 4. This move is expected to benefit investors by providing clearer guidelines for project certification, thereby reducing risks in plotted developments.

Landlord Banking Norms Simplified: No Need for Multiple Accounts

Under earlier regulations, real estate developers were required to maintain three separate bank accounts per project to ensure financial accountability. However, some landlords, who are not developers but are considered “promoters” by MahaRERA, questioned whether they too would need to follow these stringent banking requirements.

Addressing this issue, MahaRERA clarified on September 4 that landlords who are not acting as project developers are exempt from the multiple bank account rule. This exemption is expected to ease the financial management burden on landlords while maintaining compliance for actual project developers.

Parking Provisions Standardized to Prevent Disputes

In response to several complaints from homebuyers regarding parking-related issues, MahaRERA has enforced a mandate that developers provide detailed parking information within the sale agreement and allotment letter. This requirement, which was formalized on September 3, aims to eliminate ambiguity regarding parking allocations.

The new mandate specifies that developers must include information on the size, height, and width of allocated parking spaces, along with any potential structural obstructions. This additional documentation is expected to address buyer grievances related to parking allotment and improve transparency between developers and homebuyers.

These recent steps by MahaRERA underscore the authority’s commitment to streamlining real estate practices and safeguarding stakeholder interests across Maharashtra’s real estate sector. As per experts, these changes could serve as a model for other regions aiming to foster greater transparency and trust in property transactions.