MahaRERA

Maharashtra Real Estate

(Regulation and Development)
Authority

- SHUBHAM TAPKIR
1ST YEAR M.Arch (PM)
1. Short title and commencement :
(1) These rules may be called the Maharashtra Real Estate
(Regulation and Development)(Registration of real estate projects,
Registration of real estate agents, rates of interest and disclosures
on website) Rules, 2017.

(2) They shall come into force on the date of their publication in the
Official Gazette:
Provided that the relevant rules shall be effective from the date of
notification of commencement of relevant provisions by the Central
Government.
2. Definition:-
 (a) "Act" refers to the Real Estate (Regulation and Development) Act, 2016 (Act No. 16 of 2016).
 (b) "Annexure" means any attached document or information to these rules.
 (c) "Apex Body" or "Federation" is an independent organization comprising Co-operative Societies, Companies, Condominiums, or
similar entities registered under the Maharashtra Co-operative Societies Act, 1960. They work together for the maintenance and
administration of shared areas and facilities in a layout while maintaining control of their own internal affairs within their respective
buildings.
 (d) "Appellate Tribunal" is the Maharashtra Real Estate Appellate Tribunal, including its benches, established under section 43.
 (e) "ASR" or "Annual Statement of Rates" represents the land and building rates for various users, as notified under the Maharashtra
Stamp (Determination of True Market Value of Property) Rules, 1995.
 (f) "Authenticated copy" means a self-attested copy of any document required under these rules.
 (g) "Authorized representative" is a person authorized by a party to present applications or represent them before the Authority or
Appellate Tribunal.
 (h) "Authority" refers to the Maharashtra Real Estate Regulatory Authority established under section 20.
 (i) "Chairperson" is the Chairperson of the Authority appointed under section 21.
2. Definition:-
 (j) "Covered parking space" is an enclosed area approved by the Competent Authority for parking vehicles, which can be in basements,
stilt areas, podiums, or provided by mechanized parking arrangements, but excludes garages and open parking.

 (k) "Disclosure" refers to information and documents uploaded by the Promoter on the Authority's website, information provided to
potential investors through various media, and communications with the Authority, whether in physical or electronic form.

 (l) "Form" means the forms attached to these Rules.

 (m) "FSI" or "Floor Space Index" has the same meaning as defined in the Building Rules, Building By-laws, or Development Control
Regulations under applicable laws.

 (n) "Legal Practitioner" has the same meaning as defined in the Advocates Act, 1961 (25 of 1961).

 (o) "Member" is a member of the Authority appointed under section 21.

 (p) "Phase of a Real Estate Project" may consist of a building, a wing of a building (for buildings with multiple wings), or a defined
number of floors in a multi-storeyed building or wing.
2. Definition:-
 (q) "Redevelopment Scheme" is a scheme approved by the competent authority, under state or central laws or government orders, for
rehabilitating slum areas or renovating old or deteriorated buildings, including cessed buildings, or clusters of buildings, involving the
allocation of apartments.

 (r) "Regulations" are rules established by the Authority.

 (s) "Section" refers to a specific section within the Act.

 (t) "Statutory authority" is an entity vested with powers under state or central government laws, rules, or regulations.
3. Information to be furnished by the promoter for the registration of real
estate project.-
 (1) The promoter must provide the Authority with the necessary information and documents, as required by the Act and specified
in Section 4(1) and (2) of the Act, for registering the real estate project.
 (2) In addition to the requirements in (1), the promoter must also submit the following:
 (a) Authenticated PAN card copy of the promoter.
 (b) Name, photograph, contact details, and address of the promoter (if an individual) or authorized representative, or the
same information for the chairman, partners, directors, and authorized representative (for other entities).
 (c) A legal title report of the land where development is planned, verified by a practicing advocate.
 (d) If the promoter doesn't own the land, a copy of the collaboration agreement or similar agreement with the landowner,
along with authenticated legal title reports of the landowner's title.
 (e) Information about any encumbrances on the land and ongoing legal proceedings related to the land.
 (f) Details including:
 (i) Sanctioned plan for the project and details about FSI/TDR and other entitlements to be used according to current
Development Control Regulations. It should also outline amenities and common facilities.
 (ii) Proposed Plan and Layout Plan for the entire project, along with the proposed Floor Space Index.
 (iii) Proposed and sanctioned Floor Space Index. If the sanctioned FSI differs from the proposed one, the promoter
must update the Authority's website when the sanctioned FSI is received.
3. Information to be furnished by the promoter for the registration of real
estate project:-
 (iv) Proposed and sanctioned number of buildings or wings. If different, the proposed number shall be disclosed during
registration, and updates shall be uploaded when additional buildings or wings are sanctioned.
 (v) Proposed and sanctioned number of floors for each building or wing. If different, the proposed number shall be disclosed
during registration, with updates when additional floors are sanctioned.
 (vi) Total recreation open space area in square meters.
 (vii) Number of covered parking spaces.
 (g) Details about architecture, design standards, construction technology, earthquake-resistant measures, and amenities in the
Layout Plan.
 (h) Information about the organization of allottees and applicable local laws after project completion.
 (i) Any additional information and documents required by the Authority.
 (3) To register a real estate project under Section 4(1) of the Act, the promoter or their authorized representative must complete Form
'A' in triplicate.
 (4) If web-based registration is available under Section 4(3), the requirements of sub-rule (3) do not apply.
 (5) Payment of a registration fee is required based on the land area to be developed, with a minimum of INR 50,000 and a maximum of
INR 10 lakhs. Payment can be made through NEFT, RTGS, or digital transaction modes.
3. Information to be furnished by the promoter for the registration of real
estate project:-
 (6) The declaration for Section 4(2)(l) shall be submitted using Form "B."
 - Registration is not required for renovations, repairs, or redevelopment that doesn't involve marketing, selling, or new allotment
of apartments, plots, or buildings under the project, or for structural repairs mandated by public authorities or laws.

 (7) Promoters can request withdrawal of project registration within 30 days of submission to the Authority. The registration fee, as per
Authority regulations, covers administrative charges, with the remainder refunded to the promoter.

 (8) The promoter must disclose:

 (a) Land cost in the project for Section 4(2)(l)(D) purposes.
 (b) Construction cost in the project for Section 4(2)(l)(D) purposes.
 (c) The "estimated cost of the real estate project" as defined in Section 2(v).
4.Disclosure by promoter of ongoing real estate projects:-
 (1) Promoters of ongoing real estate projects without occupancy or completion certificates for all buildings must apply for registration
for each incomplete phase within three months of Section 3 commencement.

 "Phase of the project" refers to a building or buildings without occupancy or completion certificates.
 "Completion certificate" means the building permission or certificate issued by the competent authority, per the Maharashtra
Regional Town Planning Act, 1966, or other applicable laws, aligning with the granted development permission.

 (2) Promoters must disclose ongoing project details as required by Section 4(1) and (2) and Rule 3. This includes development progress
per the last approved plan, completed common areas, amenities, and the expected completion timeframe. Promoters must also
disclose the originally promised completion time to buyers, any delays, and a new timeframe based on completed development. They
should provide certificates from a project architect, engineer, and chartered accountant, certifying completion percentage, estimated
remaining construction cost for each building/wing, and receivables from sold and unsold units at current ASR rates.
4.Disclosure by promoter of ongoing real estate projects:-
 (3)
 (a) The Promoter must disclose the number of apartments sold or allotted to buyers and specify their size based on carpet area,
regardless of previous sale terms (e.g., super area, super built-up area).
 (b) For plotted development, the Promoter must disclose plot area sold to buyers, including the share of common areas and
amenities.

 (4) The Promoter must construct the real estate project as per approved plans and specifications.

 - The Promoter can combine adjacent land parcels through acquisition or development permissions. Phase-wise approvals can be
obtained as per relevant laws.
 - After 90 days from Section 3 notification, the Promoter cannot advertise, market, or sell any plot, apartment, or building on
such land parcel without registering it as a separate real estate project.
 - Consent of at least two-thirds of allottees is not required for implementing disclosed plans, alterations, additions, or
modifications mandated by competent or statutory authorities under state or central laws.
5. Withdrawal of amounts deposited in separate account:-
 (1) For withdrawals from the amount deposited under Section 4(2)(l)(D) for new projects registered after commencement:

 - The promoter must adhere to sub-clause (D) of clause (l) of sub-section (2) of section 4
 - To withdraw funds from the separate account for project expenses, the promoter must provide three certificates to the scheduled
bank:
 - A completion percentage certificate from the project architect for each building/wing.
 - An actual construction cost certificate from the engineer for each building/wing.
 - A certificate from a practicing chartered accountant, detailing construction and land costs and their proportion to the total
estimated project cost. The maximum withdrawal is determined by multiplying the total estimated cost by this proportion.

 - The promoter must follow this procedure for each withdrawal until obtaining an occupancy certificate. Upon receiving the project's
completion certificate, the remaining balance in the separate account can be withdrawn by the promoter.
5. Withdrawal of amounts deposited in separate account:-
 (ii) For ongoing projects within the meaning of the first proviso to Section 3(1) of the Act:

 - In projects where all buildings or wings lack occupancy certificates or completion certificates, 70% of the amount collected
from allottees must be deposited in a separate account, following Section 4(2)(l)(D) provisions.
 - If the estimated receivables for the ongoing project are less than the estimated completion cost, then 100% of the amount
collected from allottees must be deposited in the separate account.

 Explanation:

 - The completion cost of the project includes:

 - Costs for land acquisition, including lease charges, overhead, marketing, legal, and supervision costs.
 - Premiums for development or redevelopment rights.
 - Payments for Transferable Development Rights (TDR).
 - Premiums for Floor Space Index (FSI), including additional and fungible FSI.
 - Consideration paid to relinquish ownership rights.
 - Amounts payable to government authorities for stamp duty, transfer charges, registration fees, etc.
 - ASR-linked premiums, if required by laws, rules, or regulations, for redevelopment of lands owned by public
authorities.
5. Withdrawal of amounts deposited in separate account:-
 Explanation II: If the promoter acquires land without incurring costs through inheritance, gift, or other means, the
land cost is based on its value in the ASR as per the Maharashtra Stamp Act on the project registration date.

 Explanation III: The construction cost, for Section 4(2)(l)(D) purposes, includes all expenses for on-site and off-site
development, such as taxes, fees, premiums, and interest paid to government authorities. However, it excludes sums
raised through loans for land purchase or development rights.

 Explanation IV: In rehabilitation schemes mandated by state or central laws requiring on-site expenditures before
project registration (e.g., clearing land for temporary transit accommodation or constructing rehabilitation
buildings), these expenses can be included in the land cost if certified by an engineer, architect, and chartered
accountant in practice.
6. Grant or rejection of registration of the project:
 (a) Grant of Registration:

 - When a real estate project is registered under Section 5 and Rule 3, the Authority issues a Registration Certificate (Form "C") to
the Promoter, including a project registration number.
 - The registration period excludes any time where the promoter couldn't proceed with work due to court orders, injunctions, or
other mitigating circumstances, as decided by the Authority.
 - The Authority must provide a reasonable opportunity for hearing to allottees and other interested parties when considering
mitigating circumstances.

 (b) Rejection of Registration:

 - If the Authority rejects a registration application under Section 5, the applicant is notified using Form "D," and the relevant
competent or statutory authorities are informed.
 - The Authority cannot reject a registration application without giving the Promoter an adequate opportunity to be heard.
7. Extension of registration of the Real estate project
 (1) Applying for Project Extension:

 - To request an extension for a real estate project, submit Form "E" to the Authority. Include an explanation detailing the reasons for
project delay and the need for an extension, along with supporting documents.
 - If the extension is due to force majeure, the Authority may waive the extension fee at its discretion.

 (2) Granting or Rejecting Extension:

 - If an extension is granted, the Authority provides Form "F" to the Promoter.

 - In case of rejection, the Authority uses Form "D" to inform the Promoter. The Promoter has an opportunity for a hearing as per Section
6's second proviso. The respective competent and statutory authorities are also informed.

 (3) Extension Fees:

 - The extension application must be accompanied by fees calculated based on the land area proposed for development, at a rate of INR
10 per square meter. The fee ranges from a minimum of INR 50,000 to a maximum of INR 10 lakhs.
8. Revocation of Registration of the project:
 (1) Notification of Registration Revocation:

 - When a real estate project's registration is revoked under Section 7, the Authority informs the Promoter and the relevant competent
authority through Form "D."

 (2) Revocation Process:

 - Registration cannot be revoked unless the Authority provides the Promoter with at least 30 days' written notice, stating the grounds
for revocation, and considers any response from the Promoter within that period.
 - Before revoking the project's registration, the Authority also notifies the competent authority that approved the project and, if
applicable, the allottees' association or individual allottees.
 - The Authority ensures that remaining development works comply with Section 8 and takes measures to protect the interests of
parties with investments or mortgages related to the project, as disclosed by the Promoter on the Authority's website.
 - The Authority provides a fair opportunity for any party with a defined interest in the project (including banks, housing finance
companies, insurance companies, non-banking finance companies, etc.) to be heard in the matter.
9. Formation of legal entity and transfer of title. -
 (1) Formation of Legal Entity:

 (i) For single buildings or layouts with multiple buildings/wings:

 - Promoters must apply to the Registrar within three months from when 51% of allottees in a building or wing have booked their
apartments to register a Cooperative Housing Society, Company, or other legal entity under the Maharashtra Co-operative Societies
Act, 1960.

 (ii) For forming an Apex Body:

 - Promoters must apply to the Registrar within three months from receiving the occupancy certificate for the last building in the
layout to register a cooperative society or company for creating and registering an Apex Body (Federation or Holding entity) consisting
of all such entities formed as per clause (i) above.

 (iii) If the promoter fails to form the legal entity:

 - The Authority may order the promoter to apply for forming the legal entity or authorize allottees to apply for its formation.
9. Formation of legal entity and transfer of title. -
 (2) Conveyance of Title by Promoter:

 (i) For Plots:

 - The promoter must convey the title to allottees within three months of receiving full payment from them.

 (ii) For Single Building Projects:

 - If no agreement specifies the period for conveying the title to the legal entity of allottees, the promoter must do so within three
months from the issuance of the occupancy certificate or when 51% of allottees have paid in full, whichever is earlier.

 (iii) For Layouts:

 - For individual buildings/wings: If no agreement specifies the period, the promoter must convey the title to the legal entity of
allottees within one month of registration or three months from the occupancy certificate, whichever is earlier (excluding basements
and podiums).
 - For entire undivided land in layouts: If no agreement specifies the period, the promoter must convey the title to the Apex Body,
Federation, or Holding Company within three months of registration or three months from the occupancy certificate of the last
building/wing in the layout, whichever is earlier.
9. Formation of legal entity and transfer of title. -
 (3) If the promoter fails to convey the title to the legal entity (e.g., Cooperative Society, Company, Association, Federation), the
Authority will order the promoter to do so.

 (4) The legal entity is entitled to a unilateral deemed conveyance under the Maharashtra Ownership Flats Act, 1963. After conveying the
title to the association of allottees under section 17, the promoter retains the right to sell unsold apartments, plots, or buildings without
restriction. They can also access the building and common areas to fulfill their obligations under section 14, subsection 3.

 (5) Upon receiving the project registration certificate from the Authority, the promoter must obtain insurance as required by the Act.
They must also hand over relevant documents and conveyance of title to the association, society, federation, or body corporate as
specified.
10. Agreement for Sale:
 (1) Agreements for sale, as per section 13(2), must adhere to the prescribed provisions, rules, and regulations, and follow the model
form of agreement in Annexure 'A'. Promoters can modify the agreement as long as it complies with the legal requirements.

 (2) Any documents signed by the allottee regarding the property before the execution and registration of the agreement for sale will
not limit the allottee's rights and interests under the Act, rules, or regulations.
11. Application for Registration by the real estate agent:
 (1) Application Submission:
 - Registered real estate projects must apply before engaging in any marketing, advertising, sale, or purchase of apartments.
 (2) Use Form 'G' for the application.
 - Submit these documents:
 (a) Enterprise details, including name, registered address, type of enterprise (e.g., sole proprietorship, partnership, company), and
relevant registration numbers.
 (b) Records of registration under other applicable laws, along with necessary supporting documents (e.g., partnership deeds,
memorandum of association).
 (c) Recent color photographs of the agent (if an individual) or all partners, directors, trustees, etc. in case of other entities.
 (d) Income tax returns for the past three financial years or a declaration of exemption if applicable.
 (e) Proof of address for the main business location and details of branch offices (if any), along with contact information.
 (f) Information about previous real estate projects and their promoters for whom the agent has worked in the last five years.
 (g) Details of any pending civil or criminal cases against the individual applicant or any partners, directors, trustees, etc., for other
entities.
 (h) Copies of letterheads, rubber stamp images, and acknowledgment receipts to be used by the real estate agent.
 (i) Any other information or documents specified by regulations.
11. Application for Registration by the real estate agent:
 (3) Registration Fees:
 - For individuals: Rs. 10,000
 - For entities (non-individuals): Rs. 1,00,000

 (4) Payment Method:

 - Registration fees should be paid via NEFT, RTGS, or any other digital transaction mode.

 (5) Record-Keeping:
 - Real estate agents, when engaged by a promoter for a real estate project, must maintain separate books of accounts, records, and
documents for each such project.
12. Grant of registration to the real estate agent or rejection of registration:-
 1. Application Review:
 - The Authority must review the application within 30 days.
 - If the conditions are met:
 - The application is accepted, and a registration certificate with a number (Form 'H') is granted to the real estate agent.
 2. Rejection Process:
 - If the application is rejected, the Authority must provide written reasons (Form 'I') to the applicant.
 - Rejection can only happen after giving the applicant an opportunity to be heard.
 3. Registration Number Issuance:
 - If the application is not rejected within the specified time:
 - The Authority must provide the registration number to the applicant within seven days.
 - If the Authority fails to communicate any application deficiencies, the application is deemed granted, and the applicant is registered
accordingly.
 4. Validity:
 - Registration granted under these rules is valid for 5 years.
 - Public authorities selling apartments, buildings, or plots through public lottery under Special Local Laws are exempt from
registration as real estate agents under these rules.
13. Renewal of Registration of real estate agent:
 1. Application Submission:
 - A real estate agent must apply for renewal at least 60 days before their current registration expires.
 - Use Form 'J' for the renewal application and pay the applicable fees, similar to new registrations.

 2. Updated Documents:
 - Submit updated documents (clauses 'a' to 'i' of sub-rule 2 of rule 11) along with the renewal application.

 3. Renewal Notification:
 - If the renewal is approved, the Authority will inform the real estate agent through Form 'K.'
 - In case of rejection, the Authority will use Form 'I,' but rejection can only occur after giving the applicant an opportunity to be heard.

 4. Renewal Validity:
 - Renewed registrations for real estate agents are valid for an additional five years from the date of renewal.
 - Continued compliance with the rules and regulations is necessary for renewal.
14. Obligations of registered real estate agents:
1) Display Registration Certificate:
1) Display their Registration Certificate number at their principal place of business and any branch offices.
2) Include Registration Number in Documents:
1) Include their registration number in all documents related to advertising, marketing, selling, or purchasing, along with the
registration certificate number of the real estate project.

15. Revocation of Registration of real estate agent.-

 If a registered real estate agent violates the rules, regulations, or conditions specified in the real estate regulations, or if the Authority
believes that the agent obtained their registration through misrepresentation or fraud, the Authority may take the following actions:

 1. Revocation or Suspension of Registration:

 The Authority can revoke or suspend the registration of the real estate agent for a specified period, either on its own or based on
an application or complaint from a promoter or allottee.
 The Authority must provide the real estate agent with an opportunity to be heard before taking such action.
 Upon revocation, the Authority will inform the concerned real estate agent using Form 'I'.

 2. Restriction on Reapplication:
 If the Authority revokes a real estate agent's registration, the agent cannot reapply for registration within a period of six months.
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THANK YOU - SHUBHAM TAPKIR
- M.Arch (Sem – I)