MahaRERA Agent cheat sheet

Section 3 bars advertising, marketing, booking, selling or inviting offers for a project before it is registered with the Authority; the exemption applies where the land area does not exceed 500 sq m or the number of apartments does not exceed eight, counting all phases together.

Section 2(k): 'carpet area' is the net usable floor area of an apartment, excluding the area covered by external walls, areas under service shafts, exclusive balcony or verandah area and exclusive open terrace area, but including the area covered by internal partition walls.

Section 5: the Authority must grant or reject a project registration application within 30 days of receipt; if it fails to decide within that period, the project is deemed to be registered.

Section 11(5): 70% of the amounts realised from allottees must be deposited in a separate scheduled bank account for that project and used only for land and construction cost, with withdrawals certified by an engineer, architect and chartered accountant.

Section 13: a promoter may not accept more than 10% of the cost of a plot, apartment or building as an advance or application fee before a written, registered agreement for sale is executed.

Section 14: sanctioned plans cannot be structurally altered without the written consent of two-thirds of the allottees; Section 14(3) creates a five-year defect liability running from handover of possession, with defects to be rectified within 30 days of notice.

Section 18: where the promoter fails to complete or hand over, the allottee may withdraw and claim refund of the amount paid with interest, or continue in the project and claim interest for every month of delay until possession.

Section 9: no person may act as a real estate agent without registration; registration is granted in the prescribed form, remains valid for five years and is renewable on application.

The Maharashtra Real Estate (Regulation and Development) Rules, 2017, notified in April 2017, prescribe the application forms, documents, fees, rates of interest and the disclosures to be published on the MahaRERA website.

The prescribed interest rate in Maharashtra for delayed possession, refunds and defaulting allottees is the highest marginal cost of funds based lending rate of the State Bank of India plus two per cent.

The MahaRERA Regulations, 2017 govern the internal procedure of the Authority: filing and registration of complaints, issue of notices, hearing of parties and the format of orders.

Promoters must upload and keep updated on the MahaRERA portal the sanctioned plans, commencement certificate, title and encumbrance details, proforma agreement for sale and quarterly progress reports.

Where a project is developed in phases, each phase is registered separately, with its own declared completion date, separate escrow account and separate progress reporting.

The project registration number must be quoted in every advertisement, prospectus, banner, website and agreement for sale of the project; registered agents must similarly quote their own registration number in publicity material.

MahaRERA publishes its orders on its website and operates a Conciliation Forum through which promoter–allottee disputes may be referred for settlement outside the formal adjudicatory process.

Failure to file or update the quarterly progress report or the prescribed portal disclosures exposes the promoter to show-cause notices, penalties and action against the registration.

An agent's registration is applied for in the prescribed form with fee, identity and address proof and other documents; the Authority must dispose of the application within 30 days, and rejection requires notice and an opportunity of hearing.

A registration certificate bearing a unique MahaRERA agent registration number is issued to the individual, firm or company; for entities, the authorised signatory is named on the certificate.

Agent registration is valid for five years from the date of grant; continuation after expiry is only permissible once the renewal application with the prescribed fee has been made and granted.

Correction of the agent's name, address, constitution or other particulars is sought through the MahaRERA portal with supporting documents, following which a revised certificate is issued.

The agent must maintain books of account, records and documents of every transaction and preserve them for at least five years.

An agent must not facilitate the sale, purchase, booking or offer of a plot, apartment or building in a project that is not registered with the Authority.

An agent must disclose to the client all material facts about the project and must not make false statements, misrepresentations or unfair promises about title, approvals or timelines.

Contravention of the agent provisions attracts, under Section 60, a fine of up to rupees ten thousand per day of continuing default, capped at five per cent of the cost of the plot, apartment or building.

A project registration application under Section 4 must disclose the promoter's identity and past five years' projects, land title and encumbrances, sanctioned plans and layout, commencement certificate, estimated cost, completion date and details of agents, architects, engineers and contractors.

The application must carry a declaration that 70% of realisations will be deposited in a separate escrow account and that all information and documents furnished are true and correct.

Projects already under development when the Act commenced were required to be registered within three months, disclosing existing allottees, booking details and the current status of construction.

Promoter duties include advertising only after registration, stating the registration number, updating progress reports, not accepting more than 10% before the agreement for sale, insuring the project, obtaining commencement and occupancy certificates, and giving the allottee copies of sanctioned plans and the agreement.

Section 15: a promoter may transfer the project to a third party only with the prior written consent of two-thirds of the allottees and of the Authority, and the transferee remains bound by all liabilities and obligations.

Section 17: the promoter must execute the conveyance deed and transfer title to the allottees' association or society within three months of the occupancy certificate, as prescribed.

Section 19 allottee rights include receiving information and documents, claiming possession, claiming refund with interest, claiming compensation for defects or delay, and consenting to structural alterations as part of the two-thirds majority.

Section 19 allottee duties include paying instalments as per the agreement, taking physical possession within two months of the occupancy certificate, paying taxes and charges and participating in the formation of the allottees' association.

Section 31 permits any aggrieved person to file a complaint with the Authority or the adjudicating officer for breach of the Act, Rules or Regulations, or for compensation and interest; the Act prescribes a 60-day limit only for appeals, not for complaints.

Complaints alleging violation of statutory obligations are heard by the Authority, while claims for compensation and interest are adjudicated by an adjudicating officer who exercises civil court powers for summoning and evidence.

An appeal against an order of MahaRERA or the adjudicating officer lies to the Maharashtra Real Estate Appellate Tribunal within 60 days of receipt of the order, subject to condonation of delay for sufficient cause, and the Tribunal aims to decide within 60 days.

Penalty framework: Section 59, contravention of the prior registration requirement, up to 10% of the estimated project cost; Section 61, other promoter contraventions, up to 5%; Section 60, agent contraventions, rupees ten thousand per day up to 5% of the unit cost.

Failure to comply with orders of the Authority or the Tribunal attracts further penalties and, in aggravated cases, imprisonment of up to one year or fine, plus additional daily fines for continuing default; false information also attracts imprisonment or fine.

Unpaid penalties, interest and compensation ordered by the Authority or the Tribunal may be recovered as arrears of land revenue, and civil courts have no jurisdiction over matters entrusted to the Authority and Tribunal under Section 79.

Section 7: registration may be revoked after notice and hearing for persistent default, unfair practice or breach of the Act; on lapse or revocation the Authority may direct the allottees' association or a competent authority to complete the project.