By Soniya Gaonkar on Jun 4, 2021 2:10:34 PM
Before we proceed to look at RERA benefits for homebuyers in Maharashtra and builders in Maharashtra, let us look at what is MahaRERA act.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) governs Maharashtra’s real estate sector. MahaRERA came into existence on May 1, 2017, to help build trust within the real estate sector, regulate it, and promote growth within the industry.
The act has a plethora of rules and regulations for builders as well as home buyers, protecting both their interests and thus resulting in a number of benefits. Now that you have a basic idea of what MahaRERA is, let us proceed to look at some RERA benefits for builders and customers in Maharashtra.
MahaRERA Benefits for Home Buyers
At the outset, let us see how does RERA help buyers in Maharashtra.
1. Strict Adherence to Law and Order
The implementation of MahaRERA within the real estate sector of Maharashtra eliminates the scope for builders to funnel funds collected from investors and invest them into projects other than those originally intended.
Additionally, the act fixes down payment to ten percent. It involves penal action that includes a heavy financial penalty, coupled with imprisonment of up to three years for non-compliance to the act.
These changes prove an assurance to investors and homebuyers about the safety of their investment and that their investments will be put into only the projects that they’ve funded and nowhere else.
2. High Transparency Levels
The lack of transparency had been a significant concern across real estate prior to enforcing the RERA act. In many instances, buyers were fed non-factual advertisements only to lure them, and critical concerns such as property possession, delays, etc., were under the builder’s control.
But RERA, with its rules and regulations, and strict implementation, transformed the scene. It enhanced transparency and resulted in RERA benefits for buyers, including,
- Factual insight, updates, and reports about the project
- Mandatory RERA registration of the project
- Information about delays, if any, and penalty on delays
- Allow buyers to ask questions concerning the development and promotion of the project at any time
3. Enhanced Accountability
Earlier, in a considerable number of cases, investors and buyers might not have had a clear picture as to where their funds were redirected. However, the introduction of MahaRERA across the real estate horizon of Maharashtra made it imperative for developers to deposit 70 percent of all the funds paid for a particular project in a single account.
Additionally, the builder will use these funds exclusively for the construction or cost of the land. Furthermore, developers are required to report the project’s progress periodically to the regulatory authorities.
4. Increased Trust and Confidence
Prior to RERA, buyers used to face several challenges while dealing with a lot of real estate players. As a result, buyers were increasingly losing interest and trust in the sector.
But the implementation of MahaRERA in Maharashtra proved a game-changer.
It placed buyers in the center of everything and brought in a lot of benefits for them. It brought an assurance for buyers about their investment, fulfillment of commitment from the developer’s end, and thus get the expected value for money. The collective result of which is increased trust and confidence in the real estate sector.
Benefits of RERA for Builders in Maharashtra
MahaRERA aims to foster enhanced credibility into the real estate sector, and accordingly, the way it benefits buyers, it proves advantageous for builders as well. Let us look at some of the Maharashtra RERA benefits for builders.
1. Impose Penalty on Payment Defaulters
The way the act penalizes developers for project delays, it fines buyers for delayed installments. It empowers developers to cancel the booking, deduct the booking amount and interest and refund the amount to the buyer, in case of ongoing payment delays, despite a prior notification. Thus, it safeguards the interest of developers as well.
2. Project Registration Extension and Penalty Norm Relaxation
This is another of the benefits of RERA for builders in Maharashtra. Section 5 under Clause 6 of the act allows for an extension of realty projects under the below circumstances
- Natural calamities such as cyclones, earthquakes, floods, drought, fires, etc. impacting the regular development of a project, provided the builder submits an application to the concerned authorities, with the reason for delay clearly stated, along with the fee as specified by the authority.
- In reasonable conditions where the promoter is not at fault, the developer company must submit a written application to the concerned RERA authorities, specifying the reason for the delay in registration. Nevertheless, it must be noted that the delay must not exceed a year.
3. Increase Demand for Housing
Although strict, RERA, through enhanced credibility, and increased trust, also catalyzes the growth of the real estate sector. It is considered to boost housing demand across the state and expedite sales of unsold homes. In situations like these, who will first benefit from the increased demand? Of course, it is the developers!
Book Your Home in Kohinoor’s RERA Registered Properties Across Pune
Kohinoor is one of the leading players across the real estate horizon of Pune. The company adheres to all the rules and regulations of the MahaRERA act and provides the committed value for investment for homebuyers in Pune.
The company has a range of completed and ongoing RERA-registered projects in Pune. So, book your new home in Pune with Kohinoor, and become a part of the ever-growing Kohinoor family. For details, call 020 6764 1839.