Is RERA a Nationwide Law? Exploring Its Coverage Across India
Property

Is RERA a Nationwide Law? Exploring Its Coverage Across India

Introduction

India’s real estate sector has historically faced severe issues—unregulated growth, delayed possessions, misleading advertisements, and developers operating with impunity. In a bid to protect homebuyers and boost transparency in real estate transactions, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016 (RERA).

This revolutionary law has changed the real estate landscape dramatically. But one question continues to baffle many:

Is RERA applicable all over India?

This blog offers a comprehensive understanding of RERA's nationwide applicability, state-specific implementation, exceptions, and what it means for you as a homebuyer or developer.

People Also Read: What is RERA Act

What is RERA and Why Was It Enacted?

The Real Estate (Regulation and Development) Act, 2016, was enacted to bring order to a largely unregulated sector. Its key goals include:

  1. Protecting homebuyers from fraud and delays.

  2. Making developers accountable through mandatory project disclosures.

  3. Ensuring timely project delivery.

  4. Introducing a dispute resolution mechanism via Appellate Tribunals.

The Act mandates that all real estate projects of a certain size (500 sq. meters or more, or more than 8 apartments) must be registered with a state-specific Real Estate Regulatory Authority (RERA).

People Also Read: RERA Registration Process

The Legal Foundation of RERA: Central Legislation Explained

RERA is a central law passed by the Indian Parliament in 2016. As per Section 1(3) of the Act, the Central Government has the power to notify the date on which the Act will come into force in different states and Union Territories (UTs).

  • Partial enforcement: 1 May 2016

  • Full enforcement: 1 May 2017

It was designed to be implemented across India, but real estate being a subject under the Concurrent List, States have the autonomy to create rules for its implementation.

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Does RERA Apply Across All Indian States and UTs?

Legally, yes. RERA is applicable across the entire country.

However, in practice, RERA’s enforcement depends on each State or Union Territory notifying its rules under Section 84 of the Act. Each State is also required to:

  1. Set up a Regulatory Authority.

  2. Establish a Real Estate Appellate Tribunal (REAT).

  3. Create an online portal for project registration and public access to project details.

So while the law applies to all States and UTs in theory, its effectiveness varies by region depending on how well these implementation steps have been followed.

People Also Read: Understanding RERA and How to File a Complaint under RERA

The Role of States in RERA Implementation

Although RERA is a Central law, its successful execution depends on the State Governments taking certain crucial steps:

Responsibility Section Under RERA Description
Rulemaking Section 84 State-specific rules to operationalize RERA
Regulatory Authority Section 20 Oversight body to register and monitor projects
Appellate Tribunal Section 43 To handle appeals from aggrieved parties
Web Portal Section 34 Transparency through online disclosures

 

This structure makes RERA both centralized and decentralized—a national law enforced through state-level mechanisms.

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RERA Implementation Status Across India

Here’s a snapshot of the implementation status as of 2025:

State/UT RERA Rules Notified RERA Authority Online Portal
Maharashtra Yes MahaRERA Yes
Karnataka Yes Karnataka RERA Yes
Tamil Nadu Yes TNRERA Yes
Delhi Yes Delhi RERA Yes
Gujarat Yes GUJRERA Yes
Uttar Pradesh Yes UPRERA Yes
Telangana Yes TS RERA Yes
Bihar Yes RERA Bihar Yes
West Bengal Yes (after SC ruling) WBRERA Yes
Nagaland No - -
Arunachal Pradesh No - -
Lakshadweep Yes (via Central rules) - -

 

Key Insight:

Most States and UTs have fully operational RERA systems, while a few North-Eastern States and smaller UTs lag in implementation.

West Bengal and the WBHIRA Controversy

West Bengal presented a special case. Instead of implementing RERA, the State passed its own law in 2017 called the West Bengal Housing Industry Regulation Act (WBHIRA).

Why the Controversy?

  1. WBHIRA replicated many RERA provisions but was viewed as a parallel and conflicting law.

  2. In May 2021, the Supreme Court of India declared WBHIRA unconstitutional, stating that State laws cannot override Central legislation.

  3. Post this ruling, West Bengal adopted RERA, notified the rules, and established the State RERA authority.

This ruling reaffirmed that RERA is supreme and binding across all States and UTs.

People Also Read: Difference Between Rera Registered And Compliant Projects

Are There Projects Exempted From RERA?

Not all real estate projects fall under the purview of RERA. The following are exempted:

  1. Projects with land area less than 500 sq. meters or fewer than 8 apartments.

  2. Projects completed before RERA notification in the State.

  3. Projects involving renovation or redevelopment without new allotments.

  4. Sale of plots where construction is not planned.

  5. Projects under certain government or public agencies.

These exemptions can vary slightly depending on State rules.

People Also Read: All You Need to Know About RERA Maharashtra and the MahaRERA Act

What Happens in States Without Notified RERA Rules?

In rare cases where States or UTs have not notified RERA rules, here’s what happens:

  1. Developers cannot register their projects under RERA.

  2. Homebuyers lose access to RERA’s grievance redressal mechanism.

  3. Buyers may resort to Consumer Forums or civil courts.

  4. For UTs without legislatures (e.g., Lakshadweep), the Central Government's RERA rules apply directly.

As of 2025, this situation applies only to a handful of regions.

Benefits of RERA for Homebuyers and Developers

For Homebuyers:

  1. Mandatory registration of projects ensures transparency.

  2. Access to project details online (plans, approvals, possession date).

  3. Timely possession or compensation in case of delay.

  4. Dedicated platform for complaint filing and dispute resolution.

For Developers:

  1. Credibility boost for RERA-registered builders.

  2. Standardized contracts and legal clarity.

  3. Increased buyer confidence and smoother project funding.

Key Challenges in Uniform RERA Implementation

Despite national coverage, some challenges remain:

  • Lack of awareness among buyers, especially in rural areas.

  • Inconsistent enforcement across States.

  • Delays in setting up tribunals in some States.

  • Conflicts with legacy laws or State-specific real estate norms.

To overcome these issues, awareness drives and stricter Central monitoring are needed.

Latest Developments and Compliance Updates (2025)

  • Maharashtra RERA (MahaRERA) now requires developers to submit quarterly progress reports with drone footage.

  • The Central Advisory Council on RERA held its latest meeting in March 2025 to review compliance gaps.

  • Nagaland and Arunachal Pradesh are under pressure from the Centre to implement RERA by the end of 2025.

  • A proposal is under consideration to integrate RERA data with National GIS mapping for greater transparency.

Conclusion: RERA as a National Framework with Local Impact

To sum it up:

RERA is a Central law and legally applicable all over India.
However, its implementation depends on individual State actions.
Most States and UTs have implemented RERA with working authorities and portals.
A few regions, like Nagaland and Arunachal Pradesh, are still pending.
Homebuyers must check if their project is RERA-registered before investing.
Developers must comply with State-specific RERA rules for registration, updates, and disclosures.

RERA has brought much-needed discipline, accountability, and structure to the Indian real estate sector. It empowers buyers, regularizes builders, and provides a solid dispute resolution platform—all signs of a maturing real estate ecosystem.

Everything You Need to Know About RERA Certificates
Property

Everything You Need to Know About RERA Certificates

Introduction

For decades, the Indian real estate market operated with limited regulation. This lack of oversight led to numerous issues—unrealistic project promises, delivery delays, hidden charges, and poor construction quality. As homebuyers and investors continued to fall victim to these malpractices, the Government of India introduced a landmark law—the Real Estate (Regulation and Development) Act, 2016, popularly known as RERA.

At the heart of this Act lies a powerful accountability mechanism: the RERA certificate. Whether you're a developer, real estate agent, or a homebuyer, understanding what a RERA certificate is and how it works is crucial in today’s real estate landscape.

People Also Read: What is RERA Act

What is a RERA Certificate?

A RERA certificate is an official document issued by the State Real Estate Regulatory Authority (RERA) to real estate developers or agents. It confirms that a project or real estate professional has registered under the RERA Act, 2016, and complies with all the required norms and legal procedures.

In simple terms, it means the project is genuine, legally approved, and safe for investment.

People Also Read: RERA Registration Process

Who Needs a RERA Certificate?

1. Real Estate Developers/Promoters

Any developer launching a residential or commercial project over:

  1. 500 sq. meters, or

  2. 8 or more apartments

    must register with the respective state’s RERA and obtain a certificate before selling or advertising.

2. Real Estate Agents

Any agent wishing to facilitate sales for RERA-registered projects must also register themselves and obtain a separate RERA certificate.

3. Homebuyers

While buyers don't need to obtain the certificate themselves, they must verify the RERA status of any project before investing.

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Why is a RERA Certificate Important?

1. Transparency

RERA mandates developers to upload complete project details on the state RERA portal, including layout plans, carpet area, timelines, legal approvals, and financials.

2. Legal Compliance

A RERA certificate ensures that the project complies with:

  1. Municipal building codes

  2. Zoning laws

  3. Environmental clearances

  4. Fire safety approvals

3. Protection of Buyers’ Interests

The Act enforces strict adherence to promised timelines, construction quality, and project deliverables. It prohibits misuse of buyer funds.

4. Effective Dispute Resolution

Buyers can file complaints with the RERA authority or RERA Appellate Tribunal for quick redressal.

5. Credibility for Developers and Agents

A RERA-certified developer is perceived as more trustworthy, thus attracting more genuine buyers and investors.

People Also Read: Understanding RERA and How to File a Complaint under RERA

Key Features of a RERA Certificate

Feature Description
Legally Mandatory Cannot advertise, sell, or book units without registration
Public Information Access All project details are publicly available on state RERA websites
Escrow Mechanism 70% of buyers’ funds must go into a dedicated project account
Quarterly Disclosures Developers must update construction and financial status quarterly
Standard Definitions Terms like "carpet area" are clearly defined to avoid misinterpretation
Penalties for Violation Up to 10% of project cost in fines or imprisonment up to 3 years

 

How to Get a RERA Certificate (Step-by-Step Guide for Developers & Agents)

Step 1: Visit the State RERA Portal

Each state has its own RERA portal. For example:

  1. Maharashtra: maharera.mahaonline.gov.in

  2. Delhi: rera.delhi.gov.in

  3. Karnataka: rera.karnataka.gov.in

Step 2: Register as Promoter or Agent

Choose your role—Promoter (Developer) or Real Estate Agent. Fill in:

  1. Name, contact, email

  2. PAN/Aadhaar

  3. Company details (if applicable)

Step 3: Fill Out the Application Form

You’ll need to provide detailed information like:

  1. Project name and location

  2. Land ownership documents

  3. Layout and design plan

  4. Completion timeline

  5. Regulatory approvals

  6. Past project history (if applicable)

Step 4: Upload Required Documents

For Developers:

  1. Title deed

  2. Approved layout/building plan

  3. Land use permission (CLU)

  4. NOCs (fire, environment, airport, etc.)

  5. PAN & Aadhaar

  6. Developer’s photographs

For Agents:

  1. Business registration documents

  2. Income tax returns

  3. Photographs and identity proofs

  4. Office address proof

Step 5: Pay the Registration Fee

Fees vary based on:

  1. Land area

  2. Type of project (residential/commercial)

  3. Location (urban/rural)

Payments are made online, and a receipt is generated.

Step 6: Submit the Application

Once everything is complete, submit your application. You’ll receive an acknowledgment number for future tracking.

Step 7: Scrutiny and Clarification

The RERA Authority examines:

  1. Document accuracy

  2. Legal approvals

  3. Financial stability of promoter

They may ask for clarifications or additional submissions.

Step 8: Certificate Issuance

Once approved, your RERA Certificate will be issued and can be downloaded from the portal.

People Also Read: Difference Between Rera Registered And Compliant Projects

How to Check if a Project Has a Valid RERA Certificate

Step-by-Step Verification:

  1. Visit the official RERA portal for the respective state.

  2. Navigate to “Search Registered Projects/Agents.”

  3. Enter:

    1. Project name

    2. Developer/Promoter name

    3. Registration number

  4. Click “Submit”

  5. Review details:

    1. Validity of RERA certificate

    2. Construction status

    3. Complaints filed (if any)

    4. Project milestones

Always verify before signing any agreement or making payments.

People Also Read: All You Need to Know About RERA Maharashtra and the MahaRERA Act

Consequences of Non-Compliance with RERA Registration

For Developers:

  1. Fine up to 10% of estimated project cost

  2. Imprisonment up to 3 years

  3. Revocation of registration

For Agents:

  1. Fine of ₹10,000/day for every day of non-compliance

  2. Permanent blacklisting or suspension

For Buyers:

  • If the project is not RERA-registered:

    1. You cannot file complaints under the RERA Tribunal.

    2. You risk losing your investment.

People Also Read: Facing Delays in Property Possession? Know Your Legal Options

Benefits of RERA Certificate for Homebuyers

Benefit Description
Genuine Projects Validates that the project is legal and not unauthorized
No Hidden Clauses Full disclosure of project plans, timelines, builder reputation
Compensation Rights Right to claim refund, interest, or compensation for delay
Access to Legal Remedy Can file complaint with RERA Authority or Appellate Tribunal
Standardized Measurements "Carpet area" is now uniformly defined
Real-Time Updates Buyers can track project progress online

 

Benefits of RERA Certificate for Developers and Agents

Benefit Description
Enhanced Market Reputation Increases trust and credibility
Faster Sales Homebuyers prefer RERA-certified projects
Streamlined Workflow Systematic process reduces delays and cost overruns
Dispute Protection Reduces chances of legal disputes and ensures resolution within timeframes
Access to Finance Banks and NBFCs prefer to lend to RERA-certified projects

 

Common Mistakes to Avoid While Applying for RERA Certificate

  1. Submitting incomplete documents

  2. Ignoring state-specific RERA rules

  3. Mentioning incorrect land ownership details

  4. Missing important NOCs

  5. Not disclosing past project failures

Tip: Always consult a real estate legal expert or use professional services to complete your application properly.

RERA Certificate Validity and Renewal

  1. A RERA certificate is valid till the completion date mentioned in the application.

  2. For delays, developers must apply for an extension.

  3. Failure to renew may lead to automatic project cancellation.

State-Wise Differences in RERA Rules

While the core law is central, implementation is state-specific. Some key differences include:

State Unique Feature
Maharashtra (MahaRERA) Fully digital; top-rated for transparency
Karnataka (RERA Karnataka) Requires regular audit reports
Uttar Pradesh (UP RERA) Has a strong complaint redressal mechanism
Delhi Allows third-party complaints and dispute resolution

 

Key Legal Provisions Related to RERA Certificate

Section Provision
Section 3 Mandatory registration before promotion or sale
Section 4 Application process and documents required
Section 5 Grant or rejection of registration
Section 11 Disclosure obligations on developers
Section 18 Right to refund, interest, and compensation
Section 59-71 Penalties, offences, and adjudication

 

Conclusion

A RERA certificate is your first shield against real estate fraud. It transforms uncertainty into confidence—whether you're building, selling, or buying property.

For developers and agents, it’s more than just a legal formality—it’s a statement of professionalism and transparency.

For buyers, it’s your only guarantee that the project is genuine, monitored, and protected by law.

  • Before you invest, verify.
  • Before you sign, check RERA.
  • Before you trust, demand the certificate.
Understanding Parking Regulations in Indian Residential Societies
Civil

Understanding Parking Regulations in Indian Residential Societies

With urbanization on the rise and car ownership in India growing exponentially, parking has become a major point of concern in residential societies. The lack of adequate parking space, mismanagement, and unawareness of legal rights often lead to disputes between residents, builders, and Resident Welfare Associations (RWAs).

Legal Framework Governing Parking in Residential Societies

Real Estate (Regulation and Development) Act, 2016 (RERA)

RERA is a central legislation that regulates the real estate sector and mandates transparency in property dealings. According to Section 2(n) of RERA:

  1. Open and stilt parking areas are considered "common areas".

  2. Builders cannot sell these spaces independently.

  3. Upon issuance of the Occupation Certificate (OC), ownership of such parking areas transfers to the society.

Implication: Builders selling open or stilt parking to individual owners are in violation of RERA provisions.

Model Building Bye-Laws (MBBL) by Ministry of Housing and Urban Affairs

The MBBL recommends:

  1. 2 Equivalent Car Spaces (ECS) per 100 sq. metres of built-up area.

  2. Minimum dimensions:

    • Cars: 2.5m x 5m

    • Two-wheelers: 1.2m x 2.5m

Although not enforceable, these are often used as guiding principles by state governments while drafting local rules.

State Apartment Ownership Acts

Each state has enacted its version of the Apartment Ownership Act, such as:

  • Maharashtra Apartment Ownership Act, 1970

  • Delhi Apartment Ownership Act, 1986

These empower societies to:

  1. Frame internal bylaws.

  2. Allocate parking.

  3. Impose parking penalties.

Role of RWAs in Parking Management

Resident Welfare Associations (RWAs), once registered under the Societies Registration Act, 1860, play a vital role in parking governance:

  • Allocation of Parking: Based on availability and fair rotation.

  • Parking Stickers/Tags: For identification of authorized vehicles.

  • Regulation Enforcement: Imposing fines and resolving disputes.

  • Security Oversight: Ensuring lighting, CCTV coverage, and maintenance.

RERA also mandates that a housing society must form an RWA within 90 days of booking 51% of units.

Allocation and Types of Parking Spaces

Designated Parking Spots

These are fixed or rotating parking spots allotted to residents:

  1. Allotment method: Fixed, lottery-based, or first-come-first-serve.

  2. Mentioned in sale agreement or allotment letter.

  3. Additional spots (if any) are allotted via bidding or rotation.

Visitor Parking

  1. At least 5% of total parking must be reserved for visitors.

  2. Guests must inform security of overnight stays.

Separate Zones for Vehicle Types

  1. Four-wheelers and two-wheelers are often allotted separate areas.

  2. Bicycle racks and EV charging spots are growing in popularity.

Common Parking Issues and Their Solutions

 

Issue Description Suggested Solution
Unauthorized Parking Extra vehicles or using others' spots Issue fines, inform RWA, implement tag system
Lack of Markings Unclear boundaries cause confusion Number and mark all parking slots
Unfair Allocation Some residents get multiple slots unfairly Equal allocation before providing extras
Tenant Denial Landlords not informing RWAs about tenant parking rights Tenancy registration and declaration to RWA
Poor Security Theft, vandalism, and dim lighting Install CCTVs, security patrol, proper lighting
Blocking Driveways Emergency exits or driveways blocked Warning, followed by penalties or towing

 

Safety and Speed Regulations

Safety measures within parking areas include:

  • Speed Limit: Commonly set at 10 km/h.

  • CCTV Surveillance: Essential for deterring crime.

  • Proper Lighting: To avoid accidents and improve visibility.

  • Maintenance: Repairing potholes, ramps, and drainage systems.

Parking Clauses in Sale and Lease Agreements

Key parking-related provisions in agreements:

  1. Allotted space number and location

  2. Usage terms (two-wheeler/four-wheeler only)

  3. Maintenance and parking fees

  4. Restriction on resale or leasing of the parking slot

Buyers and tenants must read these carefully before signing.

Penalties for Parking Violations

Societies often adopt structured fine policies, such as:

  1. ₹500-₹1000 for blocking driveways

  2. ₹500 for overstaying in visitor parking

  3. ₹500 per day for unauthorized extra vehicles

Clear signage and advance intimation of rules are necessary to avoid conflicts.

Types of Parking Layouts in Residential Complexes

Perpendicular Parking

  1. Most common

  2. Efficient in large areas

  3. Requires wider aisles

Angle Parking (45° or 60°)

  1. Easier for entry and exit

  2. Saves aisle space

  3. Ideal for small to mid-size plots

Parallel Parking

  1. Suitable for narrow lanes

  2. Consumes more length, less width

  3. Less efficient in tight residential blocks

Curved Parking

  1. Rare but used for SUVs or sloped areas

  2. Follows property curvature

Parking Rights for Tenants vs. Owners

Tenants often face resistance regarding parking. However:

  1. If the owner has parking rights, tenant can use them.

  2. The lease agreement should include the clause explicitly.

  3. RWA cannot unilaterally deny access if rules are complied with.

Parking for Persons with Disabilities (PwDs)

  1. Must have designated parking near building entry

  2. Comply with Accessible India Campaign (Sugamya Bharat Abhiyan)

  3. Wider slots with clear markings are a must

Impact of Electric Vehicles on Parking Norms

With EV adoption rising:

  1. Charging stations must be integrated in parking layouts

  2. Builders to provide EV-ready infrastructure as per MoHUA guidelines

  3. RWAs must earmark EV charging zones with regulated usage

Judicial Precedents on Parking Rights

Some important legal precedents:

  • Nahalchand Laloochand Pvt. Ltd. vs. Panchali Cooperative Housing Society (2010): Supreme Court ruled that open/stilt parking cannot be sold as separate units.

  • DLF Ltd. vs. RWA (Garden Estate): Delhi High Court directed builder to hand over all common areas, including parking.

These cases underscore the need for transparent allocation.

Conclusion

Parking space management is a critical aspect of residential living in India. By understanding the governing laws like RERA, state-specific apartment acts, and building bye-laws, all stakeholders—residents, RWAs, and developers—can foster transparency and peaceful coexistence. Clear allocation, secure environments, fair usage, and legal awareness are the cornerstones of efficient parking governance.

As cities grow, embracing sustainable and technology-enabled solutions such as digital parking passes, smart sensors, and electric vehicle support will define the future of residential parking in India.

Supreme Court Verdict on Society Maintenance Charges: A Comprehensive Overview
RERA Consultation

Supreme Court Verdict on Society Maintenance Charges: A Comprehensive Overview

Maintenance charges are the operating expenses levied on residents of a housing society. These charges ensure the upkeep of common areas and facilities shared by all members of the community. Recent Supreme Court rulings on society maintenance charges have addressed various disputes and provided clarity on the legal framework, offering relief to residents and housing societies alike.

In this detailed blog, we will explore the concept of maintenance charges, their calculation, key provisions under the Real Estate (Regulation and Development) Act (RERA), and the implications of the Supreme Court’s landmark verdict on society maintenance charges.

What Are Society Maintenance Charges?

Society maintenance charges are levied on residents or property owners to manage and maintain common facilities. They are collected periodically—monthly, semi-annually, or annually—depending on the housing society or project.

Common Areas Covered by Maintenance Charges

The charges are primarily used to maintain the following common areas and facilities:

  • Swimming pools

  • Community facilities

  • Commercial facilities

  • Basements

  • Common entrances and exits

  • Fire escapes

  • Elevators

  • Staircases

  • Lobbies

  • Water tanks

  • Parks and terraces

  • Play areas

In gated societies, these charges ensure the smooth functioning of daily operations like security, cleaning, and waste management. Residents contribute a fixed amount to maintain these areas in good condition.

How Are Society Maintenance Charges Calculated?

The calculation of maintenance charges varies depending on the size of the property, quality of amenities, and services offered. Builders often charge between ₹2 and ₹25 per square foot, with more luxurious societies charging on the higher end.

Methods of Calculating Maintenance Charges

  1. Per Square Foot Charge

    • Charges are calculated based on the area (carpet or built-up) of the flat. Larger flats pay higher amounts.

  2. Equal Maintenance Fees

    • A uniform fee is charged irrespective of flat size.

  3. Hybrid Method

    • Costs are split into two parts: one for common facilities (shared equally) and another based on the flat’s size.

The Supreme Court has not prescribed a standard formula, leaving the method of calculation to the discretion of the society or builder, provided it aligns with legal guidelines.

Supreme Court Verdict: Key Highlights

In its landmark ruling on society maintenance charges, the Supreme Court addressed multiple concerns related to unfair charges, penalties, and builder practices. Below are the highlights of the judgment:

1. Uniformity and Fairness in Charges

  • Maintenance charges must be levied fairly and uniformly across residents.

  • Builders and societies cannot impose arbitrary charges on certain groups, such as tenants.

2. Transparency in Usage

  • Housing societies must publish detailed reports on maintenance collections and expenditures.

  • Residents should have access to these records to ensure accountability.

3. Maintenance Charges for Unsold Flats

  • Developers are responsible for paying maintenance charges on unsold flats until they are sold.

4. Penalties for Late Payments

  • Penalties for late payment must be reasonable and capped (e.g., at 12% per annum).

  • Residents must be given sufficient notice and a grace period to pay dues before penalties are applied.

5. RERA Provisions

Under Section 4(d) of RERA, builders are mandated to:

  • Handle maintenance until the formation of a Residents Welfare Association (RWA).

  • Charge reasonable maintenance fees as specified in the allotment letter.

6. Tenant Responsibilities

  • The primary responsibility for maintenance charges lies with property owners.

  • Owners may recover these charges from tenants through lease agreements, but societies cannot directly enforce payment from tenants.

RERA Guidelines on Maintenance Charges

The RERA Act, 2016, provides a robust framework to regulate maintenance charges and protect homebuyers. Here are the key provisions:

Builder’s Responsibility

  • Builders must manage maintenance until the RWA is formed.

  • Separate accounts must be maintained for maintenance and corpus funds, audited by a Chartered Accountant.

  • Interest earned on these funds must be credited back to the respective accounts.

Transparency in Charges

  • Maintenance charges must be disclosed during property booking.

  • Non-disclosure or arbitrary charges by builders can be challenged under RERA.

GST on Maintenance Charges

  • Maintenance charges exceeding ₹7,500 per month attract an 18% GST.

Flat Maintenance Charges: Rules and Regulations

Key Legal Provisions

  1. Builders or promoters cannot profit from maintenance charges. These funds must be used solely for the society’s upkeep.

  2. State-specific laws regulate the calculation and collection of maintenance charges.

  3. Residents can verify the Income and Expenditure Statement to ensure charges are reasonable.

Rights of Residents

  • Residents can challenge unfair practices in consumer courts or RERA authorities.

  • All charges must be uniform across residents, barring specific, justified exceptions.

Obligations of Residents

  • Payment of maintenance charges is mandatory, irrespective of flat occupancy.

  • Non-payment may result in penalties or legal action.

Supreme Court Rulings: Detailed Analysis

Maintenance Charges for Tenants

The Court emphasized that maintenance charges are applicable regardless of whether the unit is occupied by the owner or rented out. The landlord is responsible for ensuring timely payment.

Role of RWAs

Once an RWA is formed, it takes over maintenance responsibilities from the builder. The Supreme Court directed builders to hand over surplus funds, financial records, and accounts to the RWA.

Guidelines for Builders

  • Maintenance charges must be transparently communicated at the time of sale.

  • Builders cannot impose additional, undisclosed charges post-sale.

State Regulations

State governments have issued guidelines capping the maximum maintenance charges, ensuring that residents are not overburdened.

Importance of Supreme Court Verdict

The Supreme Court’s judgment is a milestone in safeguarding the rights of residents while ensuring fairness and transparency in maintenance practices.

Impact on Residents

  • Greater transparency in how charges are levied and utilized.

  • Protection against arbitrary penalties or unfair practices by builders.

Impact on Builders

  • Enhanced accountability in handling maintenance funds.

  • Mandatory adherence to RERA guidelines and state regulations.

Impact on Housing Societies

  • Encouragement to adopt standardized practices for calculating and collecting maintenance charges.

Conclusion

The Supreme Court’s verdict on society maintenance charges provides clarity and protection to both residents and housing societies. By mandating fairness, transparency, and adherence to legal guidelines, the judgment ensures that maintenance charges are justifiable and beneficial for all stakeholders.

For residents, this ruling is a call to remain vigilant and proactive in ensuring that their rights are upheld. For builders and RWAs, it is an opportunity to align practices with the law and foster trust within communities.

Maharashtra RERA’s New Rule: Brokers Must Disclose Fees
Property

Maharashtra RERA’s New Rule: Brokers Must Disclose Fees

Introduction

The real estate industry in Maharashtra has taken a significant step forward with the Maharashtra Real Estate Regulatory Authority (MahaRERA) implementing a new rule aimed at fostering transparency and trust in property transactions. This latest mandate requires real estate agents to disclose their commission and related fees in the sale agreement when they facilitate a transaction. This move is expected to bring substantial changes to the way real estate transactions are conducted in the state.

Background of MahaRERA’s New Rule

MahaRERA's decision to include a clause for commission disclosure is rooted in a broader effort to enhance accountability within the real estate sector. This new requirement stipulates that any registered real estate agent involved in a property sale must have the agreed-upon commission, brokerage, and other fees clearly outlined in the model sale agreement. This addition aims to address longstanding issues of unclear fee structures, disputes over commission, and unrecognized contributions of real estate agents.

The genesis of this new rule can be traced back to a Gazette notification issued by the Maharashtra Housing Department in 2019. Despite the notification, real estate agents often found themselves unprotected, with limited recognition of their essential role in property transactions. This latest regulation changes that by formally embedding agents’ rights into sale agreements, thereby creating a safety net for their services.

The Role of Real Estate Agents and the Need for Transparency

Real estate agents play a critical role in bridging the gap between property buyers and developers. However, their efforts have frequently gone unacknowledged due to a lack of formal regulation. By mandating that commission details be disclosed in the sale agreement, MahaRERA ensures that all parties involved in a transaction are aware of the agent’s compensation, thus reducing the potential for disputes.

Pramod Vyas, the vice-chairman of RERA at NAR-India, highlighted that the new mandate acknowledges the broker’s right to commission in transactions. Vyas pointed out that prior to this order, agents were often sidelined in formal agreements, leading to ambiguity and delayed payments. This rule now holds both developers and allottees accountable, ensuring that agents are compensated in a timely manner and that their role in facilitating property sales is respected.

How the Rule Benefits Real Estate Agents

One of the most significant outcomes of MahaRERA’s new mandate is the formal recognition of real estate agents in property transactions. This acknowledgment not only protects agents but also enhances their professional standing. With this rule in place, agents are better positioned to:

  1. Secure Timely Payments: The inclusion of commission and brokerage fees in the sale agreement ensures that agents receive their due compensation without delays.

  2. Reduce Disputes: Clear documentation of fees helps minimize misunderstandings and disputes between agents, developers, and buyers.

  3. Establish Accountability: By embedding agent compensation into official documents, both developers and buyers are held accountable for adhering to the agreed-upon terms.

Collaboration with NAR-India

The new regulation is the result of extensive collaboration between MahaRERA and the National Association of Realtors (NAR)-India, a self-regulatory organization for real estate agents. This partnership, which spanned over a year and a half, was driven by the need to recognize the contributions of agents and ensure their rights were safeguarded.

Industry professionals view this rule as a fair and necessary measure to formalize the role of agents in property deals. The partnership between MahaRERA and NAR-India exemplifies a successful collaboration aimed at organizing a sector that has often operated without clear guidelines or protection for its stakeholders.

Enhancing Trust and Transparency

The rule’s emphasis on transparency aligns with MahaRERA’s broader mission to improve trust in the real estate sector. Over the past few years, MahaRERA has introduced various measures to enhance transparency in property transactions. These initiatives include requiring developers to disclose parking arrangements and detailed information about amenities, facilities, and the size of common spaces in both the building and the overall project layout.

With these requirements, MahaRERA aims to address common complaints and ensure that buyers have a clear understanding of what they are investing in. The new rule mandating the disclosure of agent fees fits into this larger framework by making the financial aspects of property transactions more transparent.

Potential Challenges and Industry Reactions

While the new rule has been widely welcomed by real estate agents, it may present some challenges for developers and buyers. Developers may need to adjust their current practices to comply with the new requirement, and buyers will need to become more accustomed to seeing agent commissions included in their agreements.

However, the overall industry sentiment is positive. Real estate agents appreciate the acknowledgment of their contributions and the added protection that this rule provides. The clarity brought about by the mandate is expected to lead to smoother transactions and fewer conflicts.

Long-Term Implications for the Real Estate Market

The long-term implications of MahaRERA’s new rule are promising. By embedding the agent’s fees into the sale agreement, the regulation contributes to a more organized and professional real estate sector. It paves the way for:

  1. Increased Trust: Buyers are more likely to trust a transaction when all fees are disclosed upfront, fostering a culture of transparency.

  2. Formal Recognition of Agents: The regulation formally integrates real estate agents into the transaction process, elevating their status in the industry.

  3. Streamlined Transactions: With clear agreements, transactions can proceed more smoothly, benefiting all parties involved.

The Path Forward

MahaRERA’s rule represents a significant step toward modernizing the real estate industry in Maharashtra. As the new regulation takes effect, it will be essential for developers, agents, and buyers to understand their roles and obligations fully. Real estate agents, in particular, should ensure that their commission terms are clearly outlined in agreements to safeguard their interests.

For developers, compliance with this rule means adapting to new documentation practices and ensuring that all sale agreements accurately reflect the fees owed to agents. Buyers, on the other hand, will benefit from increased transparency, helping them make more informed decisions.

Conclusion

MahaRERA’s mandate for brokers to disclose fees in sale agreements is a landmark move toward greater transparency and accountability in the real estate sector. This rule not only formalizes the role of real estate agents but also enhances trust between all parties involved in property transactions. With this measure, the real estate market in Maharashtra is set to become more organized, with clearer expectations and reduced conflicts.

As the industry adapts to these changes, the collaborative efforts between regulatory bodies like MahaRERA and organizations such as NAR-India will continue to play a crucial role in shaping the future of real estate practices. By fostering transparency, protecting agents, and ensuring that buyers and developers operate within well-defined frameworks, this rule is a positive step forward for the real estate sector in Maharashtra.

All You Need to Know About RERA Maharashtra and the MahaRERA Act
Property buying selling

All You Need to Know About RERA Maharashtra and the MahaRERA Act

The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted in 2016 to protect the interests of homebuyers and promote transparency and accountability in the real estate sector. In Maharashtra, this act is implemented through the Maharashtra Real Estate Regulatory Authority (MahaRERA). The MahaRERA Act ensures that real estate transactions are conducted fairly and that buyers have access to accurate information about projects.

What is MahaRERA?

MahaRERA stands for Maharashtra Real Estate Regulatory Authority. It is a state-level body established to implement and oversee the Real Estate (Regulation and Development) Act, 2016 in Maharashtra. MahaRERA aims to protect homebuyers, ensure transparency, and promote fair practices in the real estate sector.

What is RERA Act in Maharashtra (MahaRERA)?

The RERA Act in Maharashtra, also known as MahaRERA, is a state-specific implementation of the national RERA Act. It mandates the registration of all real estate projects and agents, ensuring that buyers have access to detailed and accurate information about real estate projects and that their interests are protected.

RERA Maharashtra (MahaRERA) Vision and Functions

Vision

MahaRERA's vision is to create a transparent, accountable, and efficient real estate sector where the interests of homebuyers are protected and developers adhere to fair practices.

Functions

1. Project Registration

Developers must register their projects with MahaRERA by providing all required details, including project layout, timelines, approvals, and financials. Once registered, these details are made available to the public on the MahaRERA website.

2. Project Updates

Developers are required to update the progress of their projects regularly on the MahaRERA portal. This ensures continuous transparency and keeps buyers informed about the status of their investments.

3. Complaint Filing

If a buyer has a grievance, they can file a complaint with MahaRERA. The authority will then investigate the matter and provide a resolution within a stipulated time frame.

4. Adjudication

MahaRERA has the authority to adjudicate disputes and impose penalties on developers for non-compliance. This ensures accountability and provides buyers with a platform for redressal.

RERA Maharashtra Rules and Regulations

The rules and regulations under MahaRERA include:

1. Mandatory Project Registration

All real estate projects and agents must be registered with MahaRERA before they can be marketed, advertised, or sold. This ensures that only projects with the necessary approvals and clear titles are promoted.

2. Disclosure of Project Details

Developers must provide comprehensive details about their projects, including:

  1. Land status and ownership details

  2. Approved layout plans and specifications

  3. Project timeline and stages of construction

  4. Financial disclosures

3. Escrow Account

Developers are required to deposit 70% of the project funds collected from buyers into a separate escrow account. This ensures that the money is used only for the construction of that specific project and not diverted elsewhere.

4. Timely Completion and Delivery

Developers must adhere to the timelines provided during registration. Delays can result in penalties and compensation to buyers.

5. Quarterly Updates

Developers must update MahaRERA and the buyers about the progress of the project every quarter. This transparency helps buyers stay informed about the status of their investments.

6. Grievance Redressal Mechanism

MahaRERA provides a structured process for buyers to file complaints against developers. The authority then investigates and resolves these disputes in a timely manner.

7. Advertisements

Any advertisement or promotional material must include the MahaRERA registration number, ensuring that only registered and approved projects are advertised.

RERA Maharashtra Services

MahaRERA offers a range of services to homebuyers and developers to ensure a transparent and fair real estate market. Here are some of the key services provided:

1. Project Registration

MahaRERA ensures that all real estate projects are registered and that all necessary information about the project is made available to the public. This helps buyers make informed decisions.

2. Complaint Filing and Redressal

Buyers can file complaints against developers if they face any issues related to project delays, discrepancies, or any other grievances. MahaRERA provides a platform for these complaints and ensures timely resolution. You can file a complaint online through the MahaRERA website at maharera.mahaonline.gov.in.

3. Project Updates

Developers are required to regularly update the status of their projects on the MahaRERA portal. This service ensures continuous transparency and keeps buyers informed about the progress of their investments.

4. Information Access

MahaRERA provides easy access to detailed information about registered projects, including layout plans, approvals, timelines, and developer details. This can be accessed on the MahaRERA website at maharera.mahaonline.gov.in.

5. Agent Registration

Real estate agents are also required to register with MahaRERA. This registration ensures that only qualified and credible agents operate in the market, providing a level of assurance to buyers.

6. Legal Assistance

MahaRERA provides guidelines and support for legal assistance related to real estate transactions. Homebuyers can seek help from property lawyers for issues like property verification and legal advice on property matters.

Steps to Register a Complaint with MahaRERA

  1. Visit the MahaRERA Website: Go to the official MahaRERA website and navigate to the complaints section.

  2. Fill in the Complaint Form: Provide details of the complaint, including personal information, project details, and a description of the grievance.

  3. Submit Supporting Documents: Attach any relevant documents that support your complaint, such as the agreement, payment receipts, and correspondence with the developer.

  4. Pay the Complaint Fee: Pay the prescribed fee for filing the complaint online.

  5. Track the Status: Once submitted, you can track the status of your complaint through the MahaRERA portal.

How to Check the Status of RERA Maharashtra (MahaRERA)-Registered Projects

  1. Visit the MahaRERA Website: Go to the official MahaRERA website at maharera.mahaonline.gov.in.

  2. Navigate to the Project Search Section: Find the section dedicated to project searches.

  3. Enter Project Details: Enter the name of the project or the registration number.

  4. View Project Status: The status and details of the project will be displayed.

How to Check the Details and Approvals of a Project

  1. Visit the MahaRERA Website: Access the official MahaRERA website at maharera.mahaonline.gov.in.

  2. Navigate to the Project Search Section: Find the search section for project details.

  3. Enter Project Information: Input the project name or registration number.

  4. Access Detailed Information: View all the details, including layout plans, approvals, and timelines.

Eligibility Criteria for Registering with RERA Maharashtra

To register a project with MahaRERA, developers must meet certain eligibility criteria, ensuring that only legitimate and compliant projects are listed. Here are the key criteria:

  1. Legally Recognized Entity: The developer must be a legally recognized entity, such as a company, partnership, or individual, engaged in the real estate business.

  2. Necessary Approvals and Permissions: Developers must obtain all required approvals and permissions from relevant authorities before applying for MahaRERA registration. This includes land ownership documents, building permits, and environmental clearances.

  3. Detailed Project Information: Developers need to provide comprehensive details about the project, including:

    1. Financial disclosures and funding sources

    2. Project timeline and stages of construction

    3. Approved layout plans and specifications

    4. Land status and ownership details

  4. Financial Compliance: Developers must adhere to financial regulations, including maintaining an escrow account where 70% of the project funds collected from buyers are deposited. This ensures that the funds are used solely for the construction of the specific project.

  5. Promoter Details: Detailed information about the promoter, including past projects, legal cases, and financial status, must be submitted to MahaRERA.\

Impact of MahaRERA on the Real Estate Market

1. Increased Buyer Confidence

The transparency and accountability enforced by MahaRERA have significantly boosted buyer confidence in the real estate market. Buyers now have access to all necessary information before making a purchase, reducing the risk of fraud.

2. Streamlined Processes

The requirement for timely project updates and adherence to schedules has streamlined the real estate development process, leading to more efficient project management.

3. Legal Compliance

Developers are now more cautious and compliant with legal requirements, knowing that non-compliance can result in severe penalties and damage to their reputation.

RERA Maharashtra Office Addresses

MahaRERA oversees the registration of real estate projects in the state of Maharashtra as well as the Union Territories of Daman and Diu, and Dadra and Nagar Haveli. The MahaRERA website is user-friendly and provides comprehensive information about registered projects. It allows property investors and homebuyers to perform RERA number checks and stay informed about project details. Below are the office addresses for MahaRERA:

Mumbai Head Office:

Maharashtra Real Estate Regulatory Authority
3rd Floor, A-Wing,
Slum Rehabilitation Authority Administrative Building,
Anant Kanekar Marg,
Bandra (E),
Mumbai – 400051.
Contact No: 022 68111600

Pune Division Office:

Maharashtra Real Estate Regulatory Authority
109-113, First Floor,
Sayajirao Gaikwad Udyog Bhavan,
Aundh, Pune - 411007.
Contact No: 020 29806545

Role of Property Lawyers in MahaRERA

Property lawyers play a crucial role in navigating the complexities of the MahaRERA Act. They provide legal advice on property matters, help in property verification, and assist in resolving disputes. Here are some specific roles they play:

1. Legal Advice on Property Matter

Property lawyers offer invaluable advice on various aspects of real estate transactions. They help buyers understand their rights under the MahaRERA Act and ensure that their interests are protected in contracts and agreements.

2. Property Verification

Before purchasing property, it is essential to verify the legal status of the property. Real estate lawyers conduct thorough due diligence, checking for clear titles, existing mortgages, and any legal disputes. This verification process is crucial to avoid future complications.

3. Dispute Resolution

In case of disputes between buyers and developers, property lawyers represent their clients in front of MahaRERA and other legal bodies. Their expertise ensures that buyers get a fair resolution and any compensation due.

Finding the Right Property Lawyer

When dealing with real estate matters, it’s important to find a qualified and experienced property lawyer. Here are some tips for finding the best legal assistance:

1. Search Locally

Search for the lawyers in your cities who specialize in real estate law and are familiar with the local regulations and market conditions.

2. Check Credentials

Ensure that the lawyer you choose has the necessary qualifications and experience in dealing with real estate issues, particularly with MahaRERA cases.

3. Read Reviews

Look for reviews and testimonials from previous clients. This can provide insights into the lawyer’s expertise and success rate in handling similar cases.

Conclusion

The MahaRERA Act has brought about significant changes in the real estate sector in Maharashtra, promoting transparency, accountability, and protection for homebuyers. By ensuring that developers adhere to their promises and providing a platform for grievance redressal, MahaRERA has made the real estate market more reliable and trustworthy.

For buyers, engaging with knowledgeable property lawyers who can provide legal advice on property matters and assist with property verification is crucial. These professionals ensure that your investment is secure and that your rights are protected.

If you're looking to buy property in Maharashtra, understanding the MahaRERA Act and seeking the assistance of experienced real estate lawyers can make the process smoother and more secure.