The term MAHARERA is a commonly used one in the real estate market nowadays and you must be made aware of its full meaning. The latter part of the acronym, RERA stands for Real Estate Regulatory ACT and it has been introduced in the country in the year 2017. The act has been introduced to not only regulate but also boost the sale of real estate in the country. It needed this push because until 2017, the industry was being widely viewed as one that was only viable for the developer as also real estate builders in Mumbai and not so much for the buyer. This made buyers wary of being cheated and they shied away from investing in, most of all, property in Mumbai and residential projects in Mumbai, for the rates are much skyrocketing there as compared to most other places in the country. The MAHARERA act, thus, is the act singular to Maharashtra, which is also the first one to think of a conciliation mechanism.
There are several ways in which the MAHARERA Act has afforded to benefit the scenario of buying real estate Mumbai and some of these have been here.
Pay for just what you get
In many ways the MAHARERA Act has been put in place to protect home buyers from the widespread corruption that was originally driving the real estate builders in Mumbai. In this regard, of the many benefits that are present for the home buyer for a more transparent experience, one is also the fact that you will have to pay for your property in Mumbai based on the carpet area alone. Therefore, real estate builders in Mumbai can no longer add arbitrary costs in addition to the cost you have incurred in buying the quantity of carpet area that you have.
Compulsory registration for developers
Under this act it has also become mandatory for developers dealing in property in Mumbai, whether commercial property or flats in Mumbai, to register with RERA before beginning to look for parties or advertising for the occupancy of such flats. These registration certificates must contain all details ranging from time taken for construction, delays in construction, area that has been covered and other such details must be clearly spoken of. Only the plans that have been approved by regulators based on the information that has been received about the property can be listed for advertising and transaction.
Penalty upon failure to comply
The MAHARERA Act leaves little room for any corruption in real estate Mumbai projects for inspections can be carried out on these sites at any moment, under this act. If the regulator finds the reality of the property as not adhering to the details provided by the builder or developer at the time of registration, a charge of five percent of the cost that has been estimated on the project will be levied on the developer himself.
Under this act, the builders are now not in a position to compromise with the quality of construction of such commercial property or otherwise in a bid to pocket some of the money saved in buying material by replacing it with cheaper alternatives. This is to say that if any structural defects or such defects as those falling under the obligations of the developer, according to the agreement, are brought to the notice of the developer within five years of occupying the flat, it must be taken care of, free of cost by the builder. The complaint must also be addressed within thirty days of it having reached the builder.
Money transferring aspects
It must also be understood that under this act, promoters are no longer able to keep an arbitrary share of the money gathered from the flats in Mumbai they construct or other office buildings. They are bound by law to keep only thirty percent of the money that has been received from the buyer. The seventy percent will go to the owner of the property in case of a regular property owner as well as the government if the land was owned by the government.
Let your grievances be known
It will also do you good to know that builders are no longer in a position to let your complaints go unheard as was the previous case, as soon as they were successful in finalizing the project and receiving their token deposit from you. If you are someone who has invested in one of the flats in Mumbai or on commercial properties and are in any way a stakeholder in the project that is ongoing, you are eligible to let your problems be known. It is possible for you to file a complaint against any builder or promoter that is harassing you, directly with the MAHARERA.