Consumer Connect: 'Look At MahaRERA Portal For Homebuying Guidelines,' Says Expert

Q. I am planning to buy a flat and have almost finalized a 2BHK in an upcoming project in Thane. I have also negotiated the price that fits my budget, with possession promised in December 2026. I have paid a token amount and will pay a further amount at the beginning of Navratri. I want to know the precautions to take while paying further? What provisions should be there in the allotment letter and what clauses should be in the agreement for sale? —Pooja Kulkarni, Thane

A. Sale and purchase of housing units in Maharashtra are regulated by the Real Estate (Regulation & Development) Act, 2016 (RERA). Small projects of area not more than 500 sq mt, or not more than eight apartments, are exempted from RERA. For registration, the builder (referred to as promoter in RERA) is required to obtain the commencement certificate from the town planning authority.

The builder is also required to file a declaration with MahaRERA, supported by an affidavit, stating that (a) he has a legal title to the land, (b) timeframe to complete the project, (c) 70 % of the amount to be received from the buyers (referred to as the allottees) to be kept in a separate bank account in a scheduled bank, etc. On registration of the project, the builder is required to upload on MahaRERA portal the letter of allotment and the draft agreement for sale. You can visit the website and see all the details of your project including number of flats, floors, date of completion, and flats booked.

The allotment letter must provide details of the flat allotted, with total consideration payable, excluding GST, stamp duty and registration. It must also show the type of car parking with area and type. The allotment letter must contain rules for cancellation. If the buyer cancels within 15 days from issuance of the letter, the builder is required to refund the full amount. If the booking is cancelled within 16-30 days from issuance of the letter, the builder can deduct up to 1% of the cost.

Cancellations within 31-60 days cost up to 1.5%. If the booking is cancelled after 61 days, the builder can deduct up to 2%. The builder cannot demand and accept more than 10% of the flat cost without entering into an agreement for sale. The pro forma is available on the MahaRERA website. Many provisions in this model agreement are mandatory and non-negotiable. For example, interest payable to the buyer, in case of delay, and that too at the prescribed rate, which is SBI’s highest marginal cost of lending rate plus 2%.

The defect liability period of five years, formation of co-operative housing society within three months soon after sale of 51% of the flats, conveyance within three months from the date of occupation certificate are mandatory and non-negotiable terms. MahaRERA has also mandated that any deviation shall be highlighted in a different colour in the pro forma.

(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)

Published on: Tuesday, September 09, 2025, 10:17 AM IST