Prior to stepping out to commence house hunting, the home buyers are supposed to do some homework. Usually, individuals either approach real estate agents or walk-in into a developer’s construction and sales site. What gets ignored is due diligence as prescribed by the Maharashtra Real Estate Regulatory Authority (MahaRERA).
A homebuyer should always be cautious on what they are verbally assured and promised by the builder and an agent vis-à-vis what is actually mentioned in the fine print of the documents signed. There have been numerous instances wherein there has been a mismatch in verbal promise and the legal conditions in an agreement for sale.
The Maharera has issued some basic guidelines for such home buyers as well as investors to prevent fraud and getting into trouble while transacting in a real estate deal.
Prior to sealing the deal, question oneself with:
BEFORE BUYING A HOME
1) Check only MahaRERA registered project
2) Verify developer mentioned completion date on MahaRERA’s website
3) Ink an agreement and allotment letter as per prescribed format
4) Don’t pay more than 10% payment prior to signing the agreement
5) Entertain only through MahaRERA registered real estate agents
IMPORTANT MahaRERA PROVISIONS
6) Financial Discipline: 70% of funds collected to be used for construction
7) Transparency: Detailed project information on MahaRERA’s website
8) Quarterly progress reporting by promoters
9) Consent of two-third allottees must for any major project alteration or addition
10) Complaint filing & conciliation
AFTER THE PURCHASE
11) Monitor the project’s progress through MahaRERA website
12) Only MahaRERA Carpet Area to be referred to for all transactions
13) Ensure documents are as per Model Agreement & Model Allotment Letter
14) Complaint against Promoter or Agent for breach of any promise
If the project is registered with MahaRERA, the developers have to fulfil several conditions under the RERA Act for the benefit of the customer. These conditions include maintaining an escrow account for the project. A total of 70% of the money received from the buyers for the project has to be kept in this account to undertake work on the same project. Moreover, the developer is required to update the project status on MahaRERA’s website every three months.
“Apart from this, starting January 1, MahaRERA will register new projects having the DIN Number of all the directors and promoters of the project. This is to make transparent the related interest that the promoter has other than the project that is under construction,” said a MahaRERA official.
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