Maharera Real Estate Agent

Training and Certification

Welcome to 1 st Session On MahaRERA Real Estate Agent Training and

Certification by
MahaRERA Real Estate
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this, errors may creep in. Any mistake, error or discrepancy noted maybe brought to our
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only.
Agenda
1. Course Orientation
● Introduction
● Course Objectives & Outcomes
2. Introduction to Real Estate (Regulation and Development) Act 2016
(RERA)
● Preamble, Purpose and Objectives
● Sections of the Act
● Key Components of the Act
3. Maharashtra Real Estate Regulatory Authority (MahaRERA)
● Key Pillars of MahaRERA
1. Course Orientation

1. INTRODUCTION

● Real Estate Agents are essential element of Real Estate Sector, who connect Allottees and Promoters and facilitate
most of the real estate transactions. Recognising their importance, Real Estate (Regulation and Development) Act,
2016 recognises them as one of the key stakeholders along with Allottees and Promoters. Accordingly, every real
estate agent is required to be registered with MahaRERA for engaging in any activity relating to marketing,
advertising, sale or purchase of any apartments.
1. Course Orientation

● Real Estate Agents are the important stakeholders for the allottees and hence should have comprehensive
understanding of the real estate transaction in order to guide the allottees and prevent disputes.

● Therefore, in order to bring a certain level of consistency in the practices of real estate agents and enhance
knowledge and awareness of regulatory framework and practices, MahaRERA has introduced Capacity Building
and Certification Program for Real Estate Agents.
THE OBJECTIVES AND REASONS FOR WHICH THE ACT HAS BEEN
FRAMED
1. Ensure accountability towards allottees and protect their interest.
2. Infuse transparency, ensure fair-play and reduce frauds & delays.
3. Introduce professionalism and pan India standardization.
4. Establish symmetry of information between the promoter and allottee
5. Imposing certain responsibilities on both promoter and allottees
6. Establish regulatory oversight mechanism to enforce contracts.
7. Establish fast- track dispute resolution mechanism.
8. Promote good governance in the sector which in turn would create investor
confidence
2. Introduction to Real Estate (Regulation and Development) Act 2016 (RERA)

● Real Estate Sector is one of the most crucial sectors driving economic growth and providing
employment to citizens of India. Yet, it has traditionally been plagued with numerous issues
including opaque practices and information asymmetry. Real Estate transactions were lopsided
and leaned heavily in favour of developers. Delays were rampant and homebuyers usually did not
have a reliable forum to address their grievances. Below are the issues which were adversely
impacting the sector:
● In order to overcome these challenges, the Central Government brought in the Real Estate
(Regulation and Development) Act, 2016, (RERA) to be made fully operational with effect from
May 1, 2017. Some sections of the Act were notified from 1st May 2016 and all the State
Governments were given one year to formulate their own Rules and Regulations and set up the
Authority, to implement the Act from 1st May 2017.
Challenges, the Central Government brought in the Real Estate (Regulation and Development) Act,
2016, (RERA)

● Information asymmetry to the citizen

● No Proper Forum for Grievance Edressal for
Consumers
● Real Estate Transactions were lopsided and heavily
in favour of developers
● Sundry Abuses and Malpractices
● Huge Delays in Real Estate Projects completion
PREAMBLE, PURPOSE AND OBJECTIVES

The second title of any Act contains the purpose and objectives of that Act. The second title of the RERA Act is as under:

“An Act to establish the Real Estate Regulatory Authority for regulation and promotion
of the real estate sector and to ensure sale of plot, apartment or building, as the case
may be, or sale of real estate project, in an efficient and transparent manner and to
protect the interest of consumers in the real estate sector and to establish an
adjudicating mechanism for speedy dispute redressal and also to establish the Appellate
Tribunal to hear appeals from the decisions, directions or orders of the Real Estate
Regulatory Authority and the Adjudicating Officer and for matters connected therewith
or incidental thereto.”
A little analysis of the long title will make it clear why the Act was made:

(a)The Act is for establishing an authority namely Real Estate Regulatory Authority. For any sector to work efficiently, it
is necessary to have a regulatory authority and a set of rules for all the stakeholders. This Act provides the same for Real
Estate Sector. The purpose of this Authority is regulation and promotion of real estate sector. It may be noted that if there
is regulation then the sector will function in an orderly manner which is necessary for its growth. Hence promotion of a
healthy real estate sector is an objective of the Act.
(b)The long title further states that the purpose of the Authority will be to ensure sale of plot, apartment or building or
sale of real estate project in an efficient and transparent manner. Please note that these are the items which the Act covers
and aims at ensuring that all dealings in them shall be in efficient and transparent manner (no hidden dealing).
(c)The long title further states that the Act aims at protecting the interests of consumers in the sector, which is done by
providing a mechanism to redress the disputes. It also provides for an Appellate Tribunal over the decisions of the
Authority or its officers
A little analysis of the long title will make it clear why the Act was made:

● Therefore, The Act aims at protecting the rights and interests of consumers and promotion of
uniformity and standardization of business practices and transactions in the real estate sector. It
attempts to balance the interests of allottees, real estate agents and promoters by imposing certain
responsibilities on all. It seeks to establish symmetry of information between the promoter and
allottee, transparency of contractual conditions, set minimum standards of accountability and a
fast-track dispute resolution mechanism.
● The Act is applicable across India and its provisions are common to all the States. However, as the
subject of regulation over the real estate sector falls under the State List, the scheme of the Act is
that every State has its own Real Estate Regulatory Authority. This Authority in every State along
with the State Government, makes its own rules and regulations for the working of the Authority
and implementation of the provisions of the Act.
A little analysis of the long title will make it clear why the Act was made:

● (a)The Act is for establishing an authority namely Real Estate Regulatory Authority. For any
sector to work efficiently, it is necessary to have a regulatory authority and a set of rules for all the
stakeholders. This Act provides the same for Real Estate Sector. The purpose of this Authority is
regulation and promotion of real estate sector. It may be noted that if there is regulation then the
sector will function in an orderly manner which is necessary for its growth. Hence promotion of a
healthy real estate sector is an objective of the Act.
● (b)The long title further states that the purpose of the Authority will be to ensure sale of plot,
apartment or building or sale of real estate project in an efficient and transparent manner. Please
note that these are the items which the Act covers and aims at ensuring that all dealings in them
shall be in efficient and transparent manner (no hidden dealing).
2.2. SECTIONS OF THE ACT

● The Real Estate (Regulation and Development) Act 2016 has been divided into 10
CHAPTERS and categorized into 92 SECTIONS.

● The Act starts with the Preamble, provides title, extent and commencement,
registration of real estate projects and real estate agents, functions and duties of
promoter, rights and duties of allottees, about Real Estate Regulatory Authority,
Central Advisory Council, Real Estate Appellate Tribunal, various offences, penalties,
and adjudication, about finances, accounts, audits, and reports and other miscellaneous
provisions.
Below is the outline of the Act 2016 in tabular form-
ADVANTAGES OF RERA
2.3 KEY COMPONENTS OF THE ACT

The key components of Real Estate (Regulation and Development) Act, 2016 are as
follows:
1. Real Estate Regulatory Authority and Appellate Tribunal
Under this Act, appropriate government has to establish Real Estate Regulatory Authority
for regulation and promotion of the real estate sector in the State / UTs. The Authority shall
strive to facilitate the growth and promotion of a healthy, transparent, efficient and
competitive real estate sector while protecting the interest of allottees, promoters and real
estate agents. The authority shall also establish an adjudicating mechanism for speedy
dispute redressal regarding registered real estate projects. The key responsibilities of the
Authority shall be as follows:
2.3 KEY COMPONENTS OF THE ACT
1. Real Estate Regulatory Authority and Appellate Tribunal
● Ensuring Disclosures of Real Estate Projects by Promoters
● Real Estate Projects Registration
● Real Estate Agents Registration
● Complaints Redressal
● Provide recommendations to appropriate Government on in matters relating to the development &
promotion of real estate sector
The appropriate Government shall also establish Appellate Tribunal to hear appeals from the decisions,
directions or orders of the Real Estate Regulatory Authority. Any person aggrieved by any direction or
decision or order made by the Authority or by an adjudicating officer may file an appeal before the
Appellate Tribunal and the appeal shall be dealt with by it as expeditiously as possible and endeavour
shall be made by it to dispose of the appeal within a period of sixty days.
2.3 KEY COMPONENTS OF THE ACT

2. Real Estate Projects Registration

All commercial and residential real estate projects will have to register except in projects where
● area of land proposed to be developed does not exceed five hundred square meters
● number of apartments proposed to be developed does not exceed eight inclusive of all phases
● promoter has received completion certificate for a real estate project prior to commencement of
this Act
● for the purpose of renovation or repair or re-development which does not involve marketing,
advertising selling or new allotment of any apartment, plot or building, as the case may be, under
the real estate project
2.3 KEY COMPONENTS OF THE ACT

2. Real Estate Projects Registration

● No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any
plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area within
Maharashtra, without registering the real estate project with the Real Estate Regulatory Authority. Promoter of
ongoing real estate projects, in which all buildings as per sanctioned plan have not received Completion Certificate,
shall also be required to be registered for such phase of the project which consists of buildings not having
occupation or completion certificate.
● If any promoter fails to register as per Act, he shall be liable to a penalty which may extend up to ten per cent of the
estimated cost of the real estate project. On continued violation, he shall be punishable with imprisonment for a
term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated
cost of the real estate project, or with both.
● Apart from Registration, the promoters shall be required to provide quarterly updates on the status of the project to
the authority.
 2.3 KEY COMPONENTS OF THE ACT

3. Real Estate Agents Registration

● All Real Estate Agents should register under this Act. No real estate agent shall
facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or
purchase of any plot, apartment or building, as the case may be, in a real estate project
or part of it, without obtaining registration under this section.
● If any real estate agent fails to register, he shall be liable to a penalty of ten thousand
rupees for every day during which such default continues, which may cumulatively
extend up to five per cent of the cost of plot, apartment or buildings, as the case may
be, of the real estate project, for which the sale or purchase has been facilitated
 2.3 KEY COMPONENTS OF THE ACT
4. Filing of complaints
● Any aggrieved person may file a complaint with the Authority or
the adjudicating officer, as the case may be, with respect to any
registered real estate project, for any violation or contravention
of the provisions of this Act or the rules and regulations made
there under. The Authority shall establish an adjudicating
mechanism for speedy redressal of such complaints.
● Any person aggrieved by any direction or decision or order made
by Authority or by an adjudicating officer may file an appeal
before the Appellate Tribunal
● Any person aggrieved by any decision or order of the Appellate
Tribunal, may file an appeal to the High Court
3. Maharashtra Real Estate Regulatory Authority

Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide
Notification No. 23 dated 8 March 2017, for regulation and promotion of real estate sector in the State.
Subsequently, MahaRERA was also made the regulatory authority for Daman & Diu and Dadra Nagar Haveli.
Government of Maharashtra further promulgated the following rules detailing the functioning of Authority:
• Maharashtra Real Estate (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest
and Disclosures on Website) Rules, 2017
• Maharashtra Real Estate Regulatory Authority, Chairperson, Members, Officers and Other Employees
(Appointment and Service Conditions) Rules, 2017
• Maharashtra Real Estate (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and
Appeal, etc.) Rules, 2017
• Maharashtra Real Estate Appellate Tribunal, (Members, Officers and Employees) (Appointment and Service
Conditions) Rules, 2017
• Maharashtra Real Estate Regulatory Authority (Form of Annual Statement of Accounts and Annual Report) Rules,
2017
Over the past years, Few Amendments have been notified for the aforementioned rules. All these rules with the concerned
amendments are available on MahaRERA website.
3. Maharashtra Real Estate Regulatory Authority

MahaRERA has notified the following regulations:

• Maharashtra Real Estate Regulatory Authority (General) Regulations 2017
• Maharashtra Real Estate Regulatory Authority (Recruitment and Conditions of
Service of Employees) Regulations, 2017
• Maharashtra Real Estate Appellate Tribunal Regulations, 2019

Similarly, few amendments have been undertaken to the above mentioned regulations and
they are available on MahaRERA website.
KEY PILLARS OF MAHARERA

● MahaRERA aims to transform the Real Estate Sector, leading it

into an era of greater transparency and professionalism,
wherein all stakeholders’ interests are protected and trust and
confidence is established. MahaRERA endeavours to implement
the Act in its letter and spirit, promoting transparency,
accountability, financial discipline, customer centricity and
compliance

● The above mentioned 5 traits of MahaRERA functioning, now

form the pillars for completing MahaRERA registered projects and
bridging the trust gap between the home buyers and the developers
that had become the unfortunate legacy of the sector
A. Transparency

In order to transform Real Estate Sector, transparency in information and transactions is the first need that requires to be
addressed. With this objective, MahaRERA ensures that maximum information is available for public view at its website
including Information on Registered Projects, Registered Agents, Judgements, Orders etc.

Details of all the Registered Projects are available online for citizens including:

● sanctioned plans, layout plans, along with specifications, approved by the competent authority

● Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be

● consumed in the whole project, as proposed by the promoter

● Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).
 A. Transparency

• the stage wise time schedule of completion of the project, including the provisions for civic
infrastructure like water, sanitation and electricity.

•quarterly update of the list of number and types of apartments or plots, as the case may be,
booked

• quarterly update of the list of number of covered parking as well as list of number of garages for
sale;

• quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement
certificate, quarterly update of the status of the project; and such other information and documents as may be specified by
the regulations made by MahaRERA.

• The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of
MahaRERA, wherein all details of the registered project have been entered and include the registration number obtained
from the Authority

• The developer has to obtain consent of at least 2/3rd allottees for any major addition or
alteration
A. Transparency

• The developer cannot undertake cancellation of units in an

arbitrary manner

• The developer has to deliver the project as per pre-defined

time frame

• The developer cannot put out any advertisement of the

project before registration with MahaRERA

• The developer has to obtain consent of at least 2/3rd

allottees before transferring majority rights to any 3 rd Party

• The developer has to clearly define the number, type and

carpet area of the apartment
B. Accountability

Perhaps the greatest benefit that customers have is the reinforced trust in the real
estate sector due to enforceability of accountability by the act. The act clearly
details the roles of responsibilities of each of the stakeholders including
promoters, allottees and agents and holds them accountable for contravention.
In case of any unethical business practices by the developer

• Every officer of the company, who was in charge or was responsible will be
liable for the conduct of the company and deemed to be guilty

•Offence by an officer committed with the consent or connivance of any

director, manager, secretary or other officer of the company, will also be guilty.
C. Financial Discipline:

The Act has introduced various pioneering initiatives for preventing funds diversion and
ensuring audit of each Project. The Act strives to ensure greater financial discipline in the
real estate sector. Some of its provisions are as follows:
• A promoter shall not accept more than ten per cent of the cost of the apartment, plot, or
building as the case may be, as an advance payment or an application fee, from a person
without first entering into a written agreement for sale with such person and register the said
agreement for sale
• Seventy per cent of the amounts realized for the real estate project from the allottees, from
time to time, shall be deposited in a separate account to be maintained in a scheduled bank
to cover the cost of construction and the land cost and shall be used only for that purpose
 C. Financial Discipline:

•Withdrawal from such accounts shall be in proportion to the percentage of

completion of the project, which shall be certified by an engineer, an
architect and a chartered accountant in practice.

• Promoter to compensate buyer for any false or incorrect statement with full refund
of property cost with interest

• Project Accounts to be audited within six months after the end of every financial
year. Copy to
be submitted to MahaRERA

• Provision for MahaRERA to freeze project bank account upon non-compliance

• Provision for stronger financial penalties for MahaRERA non-compliances

 D. Customer Centricity

One of the key pillars of the new regime is protecting the interests of allottees.
MahaRERA aims at protecting the interests as well as establishing trust and
confidence between all stakeholders of real estate sector. MahaRERA has brought
focus to the treatment of the allottees in a fair and timely manner.

• Citizens shall be able to view, on MahaRERA website, all disclosures pertaining to

registered
projects. This shall enable data driven informed decision making.

•Promoter cannot make any additions and alterations in the sanctioned plans, layout
plans and specifications and the nature of fixtures, fittings and amenities etc. without
the previous consent of at least two-thirds of the allottees, other than the promoter,
who have agreed to take apartments in such building.
 D. Customer Centricity
• If the promoter fails to complete or is unable to give possession of an apartment, plot or
building, in accordance with the terms of the agreement for sale, he shall be liable to pay
interest for every month of delay. Further, in case the allottee wishes to withdraw from the
project, without prejudice to any other remedy available, to return the amount received by
him with interest

• Promoter to enable formation of Legal Entity like Cooperative

Society, Company, Association, Federation etc. within three
months from the date on which 51 per cent of the total number of allottees in such a building
or a wing, have booked their apartment.

• Promoter shall execute a registered conveyance deed in favour of the allottee within three
months from date of issue of occupancy certificate.
 E. Compliance
• All Basic Approvals in place before RERA Registration and these approvals in public forum

• Registration of agents/brokers with RERA portal

• Project registration with RERA on portal

• One (1) year extension in case of delay in Real Estate

projects

• Speedy Dispute resolution at RERA and Appellate Tribunal

• Developers to share details of projects launched in the last 5 years with status and reason for the delay with
RERA

• Annual audit of project accounts by a Chartered

Accountant
• Conveyance deed for common areas in favour of Association of allottees
 E. Compliance
• Separate registration of different phases of a single project

• Mandatory registration of new and existing projects with RERA

• Authenticated copy of all approvals, to be given when applying for project registration
with
RERA commencement certificate, sanctioned plan, layout plan, specification,

• Plan of development work, proposed facilities, proforma allotment letter, agreement for
sale
and conveyance deed
 4. Understanding of MahaRERA Portal

Maharashtra Real Estate Regulatory Authority (MahaRERA) has operationalized a web-based online system for the
entire operations of MahaRERA. Accordingly, a web-based online system is established and MahaRERA is
completely digital. The portal of the MahaRERA is https:// maharera.mahaonline.gov,. In

Here are some of the features of the RERA portal for every stakeholder

1. Key Services for Real Estate Agent on MahaRERA Portal

• Real Estate Agent Registration

• Real Estate Agent Renewal
• Corrections
• View Real Estate Project Details
• Make a Complaint
• Search Orders / Judgements of Authority
• Search Projects / Agents / Complaints And so on
2. Key Services for Allottees on MahaRERA Portal

• View Details of All Real estate Registered Projects

• Make a Complaint
• Search Orders / Judgements / Warrant Details
• Search Projects / Agents / Complaints
• View Cause list
• Complaints against Non-registered Project
• View Projects on GIS
• View all complaints project wise 3. Key Services for Promoters on MahaRERA Portal
and promoter wise And so on
• Project Registration
• Project Updates
• Project Corrections
• Project Extension
• Major Modifications
• Make a Complaint
• Search Orders / Judgements
• Download Forms & Formats And so on
 VIRTUAL TOUR OF THE PORTAL

Let’s look at the web portal’s home

page or the landing page. A
landing page is any web page that a
visitor can land on that serves a
single and focused purpose to let
someone, know more about the
organization and understand its
services.

Here is the landing page of the

MahaRERA web portal. By default,
it’s in Marathi, by clicking on the
English tab, you can jump to the
English version of the portal:
Here is the English version:
● The site is available in Marathi and English. We are here using only English version of the site.

Landing pages could be read in the 2 pages by rolling down the scroll bar to show other
parts of the landing page and its content.
VIRTUAL TOUR OF THE PORTAL

PART 1: First it shows the Menu and the dashboard. A dashboard is a type of graphical user interface that often provides
at-a-glance views of key performance indicators (KPIs). In another usage, “dashboard” is another name for “progress
report” or “report” and is considered a form of data visualization

This is the Menu bar showing various options to look for the desired information. We will be looking at each option
thoroughly with all the submenu options under each Menu head.
Here’s the Menu bar, you have
a dashboard to show the KPI
(Key Performance Indicators)
like the Number of Projects
registered, the Number of
Agents registered, the Number
of Complaints and Order
passed
PART 2: This has a Welcome
message about the MahaRERA
portal on Left Hand Side.
“What’s News” on the right will
show all the latest Circulars /
Notifications uploaded by
RERA. You will also see the
Monthly Cause List, Search
Rulings and Judgements,
Warrants issued against the cases,
and ProjectWise complaints:
MONTHLY CAUSE LIST

Monthly Cause List will show monthly complaints with the Complaint No, Project Registration No., Complainant Name,
Respondent Name, Next Hearing Date, Stage of the cases. There are various benches for hearings and all such benches could be
seen with the above information.

This will help any stakeholder to visit see and decide its further course of action. Now, this information is in the public domain.
Allottees, Agents, and Promoters can see the rulings on case to case basis and its proceedings. Real Estate Agents need to know the
disputes of the project they intend to involve themselves in for sales. And the public at large can view any kind of dispute in the
project they intend to invest in. This brings transparency to the real estate sector.
SEARCH RULINGS/JUDGEMENTS

Once you click on the ‘Search ruling Option’, you will the various search options like Complaint Number, MahaRERA Project
Registration and others. For Advance search you have Division, District and Coram to filter and narrow down your search.
 WARRANT DETAILS
Section 40 of the RERA Act allows issuance of warrants orders for recovering the unpaid amount from Promoters for incomplete projects under
the supervision of MahaRERA. Further, the case is carried forward to the collectors for properties attachment, and then the recovered amount is
paid to the MahaRERA / Allotees etc as the case maybe.

These warrants will help the buyers to get their money back and the developers also from now onwards will emphasize completing the projects
with proper funding. Warrant details show recovery warrants and the amount of dispute on the Project. It also has a summary and the project-
wise or District wise details as shown below
TOTAL
COMPLAINT
S PROJECT
WISE

DIVISION /
DISTRICT
 TOTAL COMPLAINTS PROMOTER
WISE
DIVISION / DISTRICT
The next detail on the landing page is total complaints promoter-wise. You can click on the district to check
on the district-wise promoter’s list and the number of complaints against a particular promoter.
TENDERS

All the tenders issued by MahaRERA for procurement and hiring any services are listed in the Tenders list. Users can view these
periodically to offer their services.
4.1.1. MAHARERA MENU BAR AND SUB MENUS

Now let’s explore the Menu bar. We have seen the home page and now we will start seeing what is under each menu and sub-menu
of the MahaRERA Portal:
• Introduction Submenu
provides brief background
on MahaRERA, its
establishment and key
responsibilities.

• Organisation Structure:
This submenu provides the
organisation structure of
MahaRERA as
follows:
• Contact us provides the contact details of MahaRERA offices including helpdesk numbers and ,
email ids.

• Facilities : This submenu details various services being provided by MahaRERA to Promoters, Agents and Citizens

• Our Leadership: This lists the people governing the MahaRERA including leadership from the Government Leadership
like Cabinet Minister for Housing, State Legislative Council & Minister of State(Housing), & Principal Secretary,
Housing.

It also includes MahaRERA Leadership like Chairman, MahaRERA, Members MahaRERA and Secretary,
MahaRERA for smooth execution and implementation of RERA in Maharashtra.

• Media Gallery: This sub-menu provides photos and images of various important milestones of MahaRERA

• Right to Information:
The details of Public Information Officers (PIOs) and Appellate Authorities (AAs) at MahaRERA are mentioned in a
downloadable file in this option. It also lists the RTI published from time to time. Refer to the image below to see the
RTI published.

This section also contains the MahaRERA Citizen Charter.

B. DOWNLOADS
Downloads is another important menu of the portal listing all the documents for Maharashtra, Daman & Diu & Dadar and Nagar
Haveli available for downloads

The Maharashtra Submenu has nine sections as detailed below:

1. Act

The 5 documents under Act submenu are listed on the above image and they are downloadable
pdfs for detailed viewing of these acts.

1. The Real Estate (Regulation and Development) Act, 2016

2. Notification of Government of India regarding the commencement of Act dated 26th April 2016

3. GOI’s Real Estate Removal of Difficulties of Act Order dated 28th October 2016
4. GoM Notification for the establishment of Maharashtra Real Estate Regulatory Authority under section
20 of the Act dated 8th March 2017
5. Notification of Government of India regarding the commencement of Act dated 19.4.2017
2. Rules, GRs and Circulars

Government of Maharashtra Rules, GRs and Circulars issued w.r.t Real Estate ( Regulation and Development) Act 2016 are listed
in this section.
3. Regulations

Regulations issued by Maharashtra Real Estate Regulatory Authority (MahaRERA) along with its amendments are listed in this
section.
4. Rulings of MahaRERA:

Rulings of MahaRERA are the same as

shown in Portal Part 2. You will see all
Rulings / Judgements with various search
options like Complaint Number,
MahaRERA Project Registration, and
others. For Advance search, you have
Division, District, and Coram to filter to
narrow down your search. There are 3
options to look under this section i.e.,
Rulings of MahaRERA, Judgements by
Adjudicating Officers and Non-
Registration Rulings
5. FAQs

MahaRERA has listed down Frequently Asked Questions (FAQs) for various stakeholders in this section
6. Suo motu orders by MahaRERA
MahaRERA has often taken up cases ‘suo moto’. This means they take up cases by their notice, without any petition
being filed, or a matter being brought before them by any complainant. ‘Suo Motu’ is used where a government agency
especially courts acts on its cognizance. Judiciary takes up a matter on its own on grounds of violation of law, to maintain
public order, to prevent the gross constitutional violation, and to remedy grave injustice.

This section contains orders of various Suo-moto cases taken by authority.

7. Annual Report
As RERA is for transparency, all its Annual Reports are available for download.

8. Compendium of Best Practices

This Section contains compendium of Best Practices at MahaRERA. It is a downloadable pdf.
9. Daman & Diu

Similarly, Daman & Diu and Dadra Nagar Haveli Sub Menus have Acts, Rulings, and Circulars downloadable documents as shown
below in the images:
10. New Forms
New Forms: Last option under download has the latest Forms 1 to 5 and 2A for the promoters:
C. SKILLING INITIATIVE

To ensure registered projects get completed, free from all structural defects or any other defects in workmanship, MahaRERA took
the initiative of skilling the workforce and facilitating the growth and promotion of a healthy, transparent, efficient, and
competitive real estate sector.

All details and progress of the skilling initiative is provided in this section.
D. REGISTRATION

The next important Menu is Registration:

1. Registered Projects

Real Estate Agents should be in the know of various facts of the project, whose sale they are facilitating, including whether its
registration is valid or revoked of lapsed, etc.

Under this sub-menu, Real Estate Agents and General Public can view all the details of MahaRERA Registered Projects. Apart
from this, we can also view the list of Real estate agents listed by Promoter for facilitating sale in their projects.
Let’s explore more on Registered Projects. Here we have taken an example of Rustomjee Developer. This will list all the
projects under the promotor name Rustomjee or Project name starting Rustomjee. Other information to see is the Last
Modified Date, View Documents, View Applications, and the certificates issued for the projects:
Let’s see the View Detail Option for one of the Projects. The page will show the Organization name, Type of
Organization, Address and Contact Details. Other information on the page is the experience of the promoter, promotors’
details, Project status, and the proposed date of completion.
Member information is about the Managing Director, Directors, Partner, or the Authorised Signatory involved in the
development of the Project. You can also view their photos in this option.

Further on the page, you will see the Project details like Project addresses, CTS numbers, and others. This has quite
detailed information about the boundaries and litigation information, Development works, Building Details, Apartment
Types and tasks involved in the projects and their completion status or work in progress.

Other information like Car Parks, Development Work Progress, Building Details, number of Apartments and their sizes.
This section will entail the professionals involved in the Project like the Engineers, architects, Contractors, and Agents
involved in selling the project. Here Allotee is ensured about the people involved in the projects and Agents appointed by
the Promotors to deal with.
Past Litigation details and documents to view are also available for Agents ad Allotees to understand the
outcomes and judgments on these litigations.

As you roll down this

page, you can also see all
the documents uploaded
for the projects with the
Architect’s name, Title
Details, Building Plan,
Encumbrances and
Declarations and
Certificates.
2. Registered Agents
Now let’s look at the Registered Agents and their information on the MahaRERA portal by the name Rohan. It will show all the
agents with the name Rohan or their Organizational name starting with Rohan.
You can view details, their applications and the certificates from this page. Apart from the contact details it also entails
some documents like letterhead, Rubber Stamp, Receipt copy to use for his services and any criminal data.
3. Revoked Projects
- Now let’s look at the Revoked Projects i.e., Projects where their registration has been withdrawn. If you just click the search
option with the given project or promotor details, it will list all such projects where revocation has been done.
You can view the details, applications,
revocation certificates and the Directors’
details by clicking on the icons above.
Here is the example of one of the
revocation certificates and the same
could be downloaded.
5. Change of Promoter list the projects where there is a change of Promoters with the consent of 2/3rd
of allottees and others will have as per the statutory orders/operation of law.

6. Revoked projects are listed where registered projects have been cancelled and orders have been
revoked

7. Lapsed Projects: The Validity of MahaRERA Registration for the following Projects has expired.
The promoter shall not advertise, market, book, sell or offer for sale, or invite persons to purchase in
any manner any plot, apartment, or building, as the case may be, in any of these projects.
8. Complaints - Under Complaints, you have two options to choose either Project wise or Promoter
Wise and you will see this information updated about the complaints.
E. INFORM NON-REGISTRATION

MahaRERA welcomes you to file source complaint (SC) about a Real Estate Project, under construction but not
registered with MahaRERA.
Anyone who feels, a particular real estate project, ought to have been registered under MahaRERA, but is not registered,
can give MahaRERA information in this section. MahaRERA shall accordingly take necessary action on this complaint.
You will be able to view the status of the MahaRERA investigation and its progress and the rulings for such Non-
Registered Projects
 F. ONLINE APPLICATION
If you are a new user and wish to
create an account in the
MahaRERA portal, using the New
Registration option you can do it
here. You have to register using any Select User Type: * Promoter, Real Estate Agent, or Complainant.
one of the three options

Registration as a Promoter or Real Estate

Agent will be seen in detail in the modules of
Promoters & Real Estate Agent Registration
Modules respectively.

This section also has detailed user manuals and

guidelines for navigating through the online
application. It’s better to go through all the
FAQs and download the user manual before
proceeding.
G. APPELLATE TRIBUNAL

Maharashtra Real Estate Appellate Tribunal has been established under section 43 of the Act. Any person aggrieved by any decision or
order of the Authority, may, file an appeal to the Appellate Tribunal. In this section, appellant may file online appeal, view causelist,
view orders, circulars and so on.
H. CONCILIATION FORUM
As per Section 32 (g) of the Real Estate (Regulation and Development) Act 2016, Maharashtra Real Estate Regulatory Authority must
take measures to facilitate amicable conciliation of disputes between the promoters and the allottees through dispute settlement forums set
up by the consumer or promoter associations.
With this objective, MahaRERA established MahaRERA Conciliation and Dispute Resolution Forum that shall facilitate resolution of
disputes amicably, thereby saving cost and time of litigation to parties and State, promoting greater public satisfaction with legal system
and dispute resolution.
This forum acts as a mediator between two parties and as an alternative dispute resolution mechanism. Maharashtra is the first state to
implement such a conciliation forum for dispute resolution.

This section details the Procedure for

applying for conciliation, list of
conciliators, cause list and so on.
I. STATISTICS

The last menu is Statistics that shows the analytical figures on the MahaRERA Portal like the number of projects registered, the
number of agents registered, and other details of MahaRERA
1. Registered Projects

You can view more such details under Statistics and they are updated on real time basis.
5. Real Estate Agent Registration and Responsibilities

5.1. Who is Real Estate Agent as per RERA?

As per the Section 2 (zm) of the Act, “real estate agent” means any person, who
negotiates or acts on behalf of one person in a transaction of transfer of his plot,
apartment or building, as the case may be, in a real estate project, by way of sale,
with another person or transfer of plot, apartment or building, as the case may be,
of any other person to him and receives remuneration or fees or any other
charges for his services whether as a commission or otherwise and includes a
person who introduces, through any medium, prospective buyers and sellers to
each other for negotiation for sale or purchase of plot, apartment or building, as
the case may be, and includes property dealers, brokers, middlemen by whatever
name called.

Therefore, any person or organisation who fits in above definition is considered

to be a Real Estate Agent under RERA and accordingly has to be registered with
the authority.
5.2. Registration of Real Estate Agents as per Section
9 of the Act
Section 9 of the Act, details registration requirements and process for Real Estate Agent. The provisions under Section 9 are:

“9(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of
any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project
registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section.”
This is a strict stipulation that an agent should not be involved in any sale or purchase either directly or indirectly with any project
(plot or building or apartment) unless the agent has been registered with concerned RERA.

“9(2) Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and
accompanied by such fee and documents as may be prescribed.”
5.2. Registration of Real Estate Agents as per Section 9 of the Act
In order to register with RERA, Real Estate Agents should apply as per the form, submit all required documents and pay fees as
prescribed.

“9(3) The Authority shall, within such period, in such manner and upon satisfying itself of the fulfilment of such conditions, as
may be prescribed:

a. grant a single registration to the real estate agent for the entire State of Union territory, as the case may be;

b. reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act or
the rules or regulations made thereunder:”

Once the application is received, the Authority will verify and confirm that the agent is bonafide and then issue a registration
number as applicable. This registration will enable the agent to transact within the entire State of Maharashtra. In case the
application is rejected, the reason for rejecting will be provided in writing to the agent by the Authority. The applications can be
rejected only if they do not meet the criteria laid out under the Act.

“Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the
matter.”

Before the application is rejected, the agent will be given a chance to explain any non -conformance. Only if the agent is unable to
provide the required explanations will the application be rejected.
5.2. Registration of Real Estate Agents as per Section 9 of the Act

“9(4) Whereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about
the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.”

In case the agent does not get any rejection intimation within the time period for approval, then it may be understood that the agent’s
application is deemed to have been registered.

“9(5) Every real estate agent who is registered as per the provisions of this Act or the rules and regulations made thereunder, shall be
granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under this
Act.”

Every successful application is given a unique registration number. The agent has to quote this registration number in every transaction.

“9(6) Every registration shall be valid for such period as may be prescribed and shall be renewable for a period in such manner and on
payment of such fee as may be prescribed.”
The agent registrations have a time validity of five years and should be renewed.
5.2. Registration of Real Estate Agents as per Section 9 of the Act

“9(7) Where any real estate agent who has been granted registration under this Act commits breach of any of the
conditions thereof or any other terms and conditions specified under this Act or any rules or regulations made thereunder,
or where the Authority is satisfied that such registration has been secured by the real estate agent through
misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act, revoke the
registration or suspend the same for such period as it thinks fit:

Post the successful agent registration and in case it has been discovered that the agent had given false information like
false documents etc. or if there has been any violation of the provisions of the Act by the agent, then the agent’s
registration can be revoked or suspended by the authority. However, the agent will be given an opportunity to clarify
before the registration is revoked or suspended.
 5.3. Type of Real Estate Agents
MahaRERA has identified two categories of Real Estate Agents, mainly for Registration perspective:

• Individuals

• Other than Individuals (Company, Partnership, Proprietorship,

Society, Others) Who is an individual real estate agent?

1. A person carrying out the business of Real Estate Agent in his own
name and having no employee.

2. This individual is responsible for the real estate transaction right

from sourcing leads, prospecting, viewing, closing deals and finally
obtaining the brokerage.

3. This individual has registered with his name appearing on his legal documentation

4. Certificate of Registration issued by MahaRERA will be on his personal name, as shown in the documents
5.3. Type of Real Estate Agents

Who is a non-Individual real estate agent?

1. Person/s carrying out business in his/her organisation name be it any kind - Proprietorship, Partnership, Company,
Society, Others.

2. The business is registered under the name of the organisation.

3. There may be one employee or more working in different roles taking care of the marketing, sales, viewing, legal
documentation, accounts etc.

4. Certificate of Registration issued by MahaRERA will be on the name of the organisation.

Why is this differentiation important?

The organisation is liable for all consequences of each employees’ actions, representation etc. The organisation is liable for
the code of conduct of each of his employee.

All communication from the organisation’s employees to any clients have to carry the MahaRERA Registration number
clearly.
5.4. Registration Application and Process

Rule 11 and 12 of 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 detail out the process for Application for Registration
by the real estate agent and Grant of Registration to the real estate agent. It is as follows:

“11(1) Every real estate agent required to be registered as per sub-section (2) of section 9 shall make an application in writing, - in case
of registered real estate projects, forthwith and in any case prior to engaging in any activity relating to marketing, advertising sale or
purchase of any apartments.”

Real Estate Agents have to mandatorily register themselves before engaging in any activity relating to marketing, advertising or sale of
any apartments.

“11(2) The application shall be in Form ‘G’. The following documents shall also be submitted along with the application, namely: -

a. brief details of his enterprise including its name, registered address of place of business, type of enterprise (proprietorship firm,
societies, partnership, company etc.); Registration numbers, PAN, Aadhar Card No, DIN, as the case may be, under which returns are
required to be filed with statutory authority;
5.4. Registration Application and Process

b. particulars of registration obtained under other laws, and rules and regulations, as the case may be, along with the
authenticated copy of partnership deeds, memorandum of association, articles of association, etc.;

c. recent colour photographs of the real estate agent, if an individual and of all the partners, directors, trustees, etc.
including persons in service or assigned work expected on a real estate agent, in case of other entities;

d. income-tax returns for last three financial years preceding the application or in case the applicant was exempted from
filing returns in any of the three-year preceding the application, a declaration to such effect;

e. authenticated copy of the proof of address of the principal place of business, number of branch offices if any along
with contact details including Telephone Numbers, Fax Numbers and email address; and
5.4. Registration Application and Process

f. details (if any) of all real estate projects and their promoters on whose behalf he has acted as real estate agent in preceding five
years;

g. details of all civil or criminal cases pending against him if an individual or any of the partners, directors, trustees etc. in case of
other entities;

h. authenticated copies of all letter heads; rubber stamp images, acknowledgement receipts proposed to be used by the real estate
agent;

i. such other information and documents, as may be specified by regulations.”

This Rule details the various information to be provided by the Real Estate Agent in the application along with supporting
documents.

“11(3) (i) sum of rupees ten thousand, in case of applicant being an individual; and
(ii) rupees one lakh, in case of the applicant being other than an individual.”

11(4) The fees for registration of real estate project shall be paid through NEFT or RTGS System or any other digital transaction
mode.”
5.4. Registration Application and Process

This section details the application fees to be paid for real estate agent registration and mode of payment.

“11(5) The real estate agent upon being engaged by the promoter under clause (f) of sub-section

(2) of section 4 for a real estate project shall maintain and preserve books of accounts, records and documents separately for each
such real estate project.”

When promoters engage real estate agents for marketing and sale of projects, they are required to maintain separate records of all
financial transactions for each project.

“12 (1) The Authority, may, within 30 days of receipt of application, satisfying itself of the fulfilment of such conditions,

a. accept the application and grant registration certificate to the real estate agent;

b. upon the registration of a real estate agent as per section 9 read with sub-rule (1) of Rule 11, the Authority shall issue a
registration certificate with a registration number in Form ‘H’.”
5.4. Registration Application and Process
On scrutiny and acceptance of the Registration application by authority, Registration Certificate shall be issued by the Authority. Each
Registration certificate shall contain unique registration number.

“12 (2) In case of rejection of the application as per section 9 or the rules or regulations made there under, the Authority shall, after
recording the reasons in writing in form the applicant in Form ‘I’:
Provided that, no application for registration of a real estate agent shall be rejected unless the applicant has been given an opportunity of
being heard in the matter by the Authority.”

In case of rejection of Registration Application by the Authority, the reasons for the same shall be provided in writing by the authority.
Further, no application shall be rejected without giving an opportunity of being heard to the Real Estate Agent.

“12 (3) (a) On completion of period as indicated in sub-rule (1) above,

the Authority shall, if the application is not rejected, provide
registration number to the applicant within seven days;

(b) if the authority fails to issue any communication about

the deficiencies in his application, the application shall be deemed
to have been granted and the applicant shall be deemed
to have been registered and the authority shall issue a
registration number to such applicant accordingly”.
5.4. Registration Application and Process
This section enables deemed registration for Real Estate Agents across Maharashtra.

“12 (4) The registration granted under this rule shall be valid for a period of five years:”

The validity of Registration for Real Estate Agents is five years. Agents are required to renew their registration on completion of
this period.

“Explanation. - The public authorities established

under Special Local Laws which may sell Apartments
or Buildings or Plot under any real estate project
through Public Lottery as per their Rules or
Regulations shall not be required to be registered
as real estate agent, under these rules.”

This clause exempts public authorities from

registration as real estate agent.
5.5. Renewal of Registration of Real Estate Agents
The Rules referred above stipulates that the validity of registration of
Real Estate Agents is five years. The agents are required to renew their
registration on completion of this period. The process for renewal of
Registration of Real Estate Agent is detailed in Rule 13 of 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.

“13 (1) A real estate agent to whom registration has been granted under
section 9 may, make an application for renewal of his registration, at
least sixty days prior to the expiry of the registration. The application
shall be in Form ‘J’ and shall be accompanied with the same fees as are
applicable in case of new registration, under these rules.”
 5.5. Renewal of Registration of Real Estate Agents
This section highlights that the process for renewal of real estate agent
registration may commence, atleast sixty days prior to expiry of
registration. The renewal application and fees shall be as prescribed
.
● “13 (2) The real estate agent shall also submit all the updated
documents set out in clauses (a) to (i) of sub-rule (2) of rule 11 at
the time of application for renewal. In case of renewal of
registration, the authority shall inform the real estate agent about
the same in Form ‘K’ and in case of rejection of the application
for renewal of registration the authority, shall inform the real
estate agent in Form ‘I’:

● Provided that, no application for renewal of registration shall be

rejected unless the applicant has been given an opportunity of
being heard in the matter.”
5.5. Renewal of Registration of Real Estate Agents
This section details the required documents to be submitted for renewal. On
successful scrutiny, Renewal certificate shall be issued by authority to Real Estate
Agent. In case of rejection, Agent
shall be given an opportunity to be heard before final rejection.

● “13 (3) The renewal of registration of the real estate agent shall be granted
provided that the real estate agent continues to comply with the provisions
and the rules and regulations made there under.”

● The agent’s registration will be renewed only if the agent continues to

follow all the provisions, rules and regulations under the Act..

● “13 (4) The renewal granted of registrations to a real estate agent under this
rule shall also be valid for a period of five years from the date of its
renewal.”

● The agent registration once renewed will be valid for 5 years from the date
of renewal.
 5.6. Functions of Real Estate Agents
As Real Estate Agents are important stakeholders, the Act and the rules list important functions and obligations of Real Estate
Agents, which every agent has to comply with.

(i) Functions of the Real Estate Agents as per Section 10 of the Act:

“10 Every real estate agent registered under section 9 shall—

(a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of
it, being sold by the promoter in any planning area, which is not registered with the Authority;”

Every Real Estate Agent has to ensure that they facilitate sale / marketing / advertisement of only those projects that are
registered with MahaRERA.

(b) maintain and preserve such books of account, records and documents as may prescribed;”

Every Real Estate agent has to maintain books of account and record of all transaction facilitated for individual projects
separately.

(c) not involve himself in any unfair trade practices, namely:—

 5.6. Functions of Real Estate Agents
(i) the practice of making any statement, whether orally or in writing or by visible representation which—

(A) falsely represents that the services are of a particular standard or grade;

(B) represents that the promoter or himself has approval or affiliation which such promoter or himself does not have;

(C) makes a false or misleading representation concerning the services;

(ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not
intended to be offered.”

Every Real Estate Agent should ensure that they are not involved in unfair trade practices including any kind of
misrepresentation in oral or written form. They shouldn’t falsely represent or advertise services that are not offered by the
promoter.

(d) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking of any
plot, apartment or building, as the case may be;”
Real Estate Agent should ensure that Allottee has all the concerned information and documents, for informed decision making,
at the time of booking.
 5.6. Functions of Real Estate Agents
(ii) Obligations of registered real estate agents as per Rule 14

Rule 14 of 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 prescribe few obligations for the registered real estate
agents as follows:

“14 (1) Every registered real estate agent shall prominently display number of his Registration Certificate at the principal place
of business and at its branch offices.”

Every agent must prominently display its registration number at its principal office and all branches.

“14 (2) Every registered real estate agent shall quote his number of their registration all the documents relating to
advertisement, marketing, selling or purchase issued by the real estate agent along with the number of registration certificate of
the real estate project.”

Further, it is important for every real estate agent to clearly display his/her registration number in any marketing collateral
he/she develops.
 5.6. Functions of Real Estate Agents
(iii) Maintenance and preservation and production of books of accounts, records and documents as per Rule 16

Rule 16 of 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 states that:

“16. Every registered real estate agent shall maintain and preserve such books of accounts, records and
documents as he may be required in accordance with the provisions of the Income Tax Act, 1961 or the
Companies Act, 2013 or under any other law applicable for the time being in force or rules and regulations
framed there under and will be required to produce them for inspection if so needed for grant or renewal of
the registration.”

It is important for the agents to keep all financial and legal records of transactions diligently. These records may be called for
inspection by Authority during renewal on enquiry.
5.6. Functions of Real Estate Agents

(iv) Other functions of a real estate agent as per Rule 17

Rule 17 of 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 states that:

“17. The real estate agent shall provide assistance to enable the allottee and promoter of each real
estate project, to exercise their respective rights and fulfil their respective obligations at the time of
marketing and selling, purchase and sale of any plot, apartment or building,
as the case may be and
not involve himself in any
unfair trade practices,
namely: -
5.6. Functions of Real Estate Agents

(i) making any statement, whether orally or in writing or by visible representation which-

a. falsely or knowingly represents that services or amenities are of a particular standard or grade.
b. represents that the Promoter or himself has approval or affiliation which such promoter or himself does not have;
c. makes a false or misleading representation concerning the services which the promoter does not have

(ii) permitting the publication of any advertisement whether in any newspaper or other media, of services that are
not intended to be offered by the promoter.

(iii) facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of
booking of any plot, apartment or building or as the case may be;

(iv) discharge such other functions as prescribed by the regulations of the Authority.”

This Rule clearly emphasizes the importance of Real Estate Agent in any transaction. Firstly, Agent assists the allottees by
empowering them with all necessary information and knowledge to make informed decisions. Secondly, they also assist the
developers in fulfilling their respective obligations.
In order to implement its obligations, agent must ensure that it doesn’t indulge in any unfair trade practices.
5.7. Revocation of Registration of Real Estate Agents

Rule 15 of 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 details the process for revocation of
registration of real estate agent and consequence of it thereafter.

“15 (1) Where any real estate agent who has been granted registration certificate number commits breach of any terms
and conditions specified under these rules or regulations made there under, or where the Authority is satisfied that such
registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without
prejudice to any other provisions under the Act, either suo-motu or on an application or complaint from the promoter or
allottee or revoke the registration or suspend the same for such period as the Authority thinks fit and inform all the
promoters:

Provided that, no such revocation or suspension of registration shall be made by the Authority unless an opportunity of
being heard has been given to the real estate agent.
5.7. Revocation of Registration of Real Estate Agents

(2) Where the Authority revokes the registration it shall intimate about the same to the concerned real estate agent in
Form ‘I’:

Provided that, on the revocation of the registration by the Authority of any real estate agent; fresh application for grant of
registration cannot be made again within a period of six months by such real estate agent”

As per Rule 15, if the Authority comes to know that the agent has acted in contravention to any provision of Act, Rules or
Regulations or provided false information, then the Authority, either acting on a complaint or on its own, can revoke the
agent’s registration and disallow him/her from transacting.

Once the registration has been revoked, the agent cannot make any application for registration for atleast six months.
5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

1. Open MAHARERA Web portal

from below link and Click On Online
Application Tab:- https://
maharera.mahaonline.gov.in/

This is the landing (Main) page where

we begin the registration process
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

2. Click on New Registration Button

In this page we enter our login and

password
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal
5.8.1. Individual Agents

3. Create New Account by following the steps

below:-

a. Select Real Estate Agent in User Type.

b. Select State as Maharashtra

c. Give User Name, Password, Confirm Password,

Mobile Number and Email ID.

d. Finally fill up the Captcha asked on Login Page

and click on Create User Button.

In this page we complete the main details to create

our user account
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

4. Once User is created it will ask

you to verify it by sending you the
activation link to your email.

a. Please Click on Activation link and

Confirmation message will pop up.
Click OK on Message Box

This is an email we receive to confirm

registration. The email id is the same
you use when creating the account.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

4. Once User is created it will ask

you to verify it by sending you the
activation link to your email.

This is the message you receive that

confirms you have created an account
successfully.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

5. Now Login into the Account by giving your

credentials and Captcha provided on page.

This is the login screen where you input the user

name and password to enter and begin the
registration.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

6. Once you Login, you will be taken to the

MAHARERA Home page, wherein from side
menu further details are required.

Once you login in, you will be directed to this

page. Here you see the different fields on the left
side, which you need to fill in order to complete
the registration
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal
5.8.1. Individual Agents

7. From Side Menu, Click on Accounts and My

Profile link to give General Information about
Individual type Real Estate Agent. Fill in the
Personal Information along with the Identity
proof.

a. Select other details such as Past experience ,if

any,
b. Criminal /Police case pending, if any,
c. Registration as an agent with any other states, if
any, needs to be provided.

8. Give also the Address and other Contact details

along with Photograph on My Profile Page as
shown below
The “My Profile” tab is the place where you enter your information.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

In this section you fill in your address details.

 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

In this section you fill in your contact details

 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal
5.8.1. Individual Agents

9. Once done, please click on the Save Profile

button to save all your personal Information as
an Individual Real Estate Agent. A Message
Box with “Profile Saved Successfully” will
pop up. Click OK on Message Box.

10. If on “My Profile” Page past experience is

selected as ‘YES’ then, select side menu “Past
Experience Details” section. You will be taken
to “Agent Past Experience Details” page.
please fill in the required Past Project Details
for work experience details as a Real Estate
Agent. Save the details. In this section you fill in, those previous projects where you have been an agent
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

11. You can also edit and add another project

details if needed

Once you fill in and click save, you can see the
project added.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

12. “Agents Details Added Successfully”

Message pops up. Click OK to proceed
further”

This is the confirmation window that pops up to

confirm the past experience details have been added.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

13. Next, please provide your branch office

details by click on side Menu “Add Branch
Details”.

In this section you need to fill in the branch

offices.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

14. Click OK on Message Box “Data saved

successfully”. If needed you can also edit and
add additional by clicking “Add Branch”
button.

This pop up box confirms that your data is added.

 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

15. If any criminal or Police case is pending,

then please add necessary information as
shown below by going to side menu “Add
Litigation”.

In this section you need to give details of any legal

cases registered against you.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

16. Click OK on Message Box “Data saved

successfully”. If needed please edit the
information and save again.

This pop up informs you that the legal case details

are added
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

17. Now under Registration Details Side

Menu-Add registration details, if you have
Real Estate Registration in any other state
apart from Maharashtra then please fill up the
details along with registration number and
documents. Click OK on Message Box to add
the details.

This section allows you to fill in details of past

work experience in States other than Maharashtra
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

16. Click OK on Message Box “Data saved

successfully”. If needed please edit the
information and save again.

Here you click the save button to successfully add

these details
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

18. Click Save Registration.

In this window you can see the details of

registration in other states added.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

19. You can edit the information and also add

additional state details if needed and save.
Click OK on Message Box “Agent Details
Added Successfully”..

This pop up is a confirmation message that the

details have been successfully added
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

20. Next From Side Menu, Click on

Registration Details and from “Document
Upload“ Menu, upload Mandatory documents
marked as (*) from choose file option. Click
on Upload to save your documents with
MahaRERA web portal.

This section deals with uploading the mandatory

documents. You must pay attention and carefully
upload the correct documents.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

21. Once uploaded, click OK on Message Box

“File uploaded successfully”.

This pop up will confirm that the document has

been successfully added
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

22. Repeat this step for all documents to be

uploaded.

One by one you must upload all the required

documents here.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

23. Please click on payment side Menu;

it will generate your profile summary
webpage with all details given by you
for verification
Once you click on the payment tab all the
information you have previously entered will be
shown and you need to read and confirm that there
is no mistake
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

24. Select Checkbox for Terms and

Condition agreement and click on
“Confirm and Proceed to Payment
“Button.

Check if all legal case details which you have

entered are showing here.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

24. For Payment of Registration Fees,

after clicking “Payment” Side Menu,
the Payment description page would
appear with payment process and
details for the real estate agent to make
payment. Click on Make payment or
Generate Challan as per convenience.

In this page you will see the fee payable.

 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

24. For Payment of Registration Fees,

after clicking “Payment” Side Menu,
the Payment description page would
appear with payment process and
details for the real estate agent to make
payment. Click on Make payment or
Generate Challan as per convenience.

On this page you can now proceed to pay by

clicking the make payment button.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

26. Once you click on the Make

Payment button, it will take you to
MahaOnline site showing the payment
summary and then you need to proceed
with the payment.

Once again, you get to see a summary of fees

payable. You should confirm that it is correct and
then click proceed for payment tab.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.1. Individual Agents

23. Please click on payment side Menu;

it will generate your profile summary
webpage with all details given by you
for verification
Check that all necessary documents have been
uploaded.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal
5.8.1. Individual Agents

27. Click on the payment method you

wish to opt for to make the registration
fees payment.

This screen gives you many payment options. You

can choose any

28. Once Payment is done successfully.

After scrutiny and verifications
MahaRERA would issue Real Estate
Registration Certificate that can be
view from the side Menu under
“Registration Details” section.
5.8. Step – by- Step 1. Open MahaRERA Web portal from below link and Click on Online
Application Tab:-https://maharera.mahaonline.gov.in/
Guidance for Agent
This is the landing (Main) page where we begin the registration process
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents
 Click on New Registration Button.
5.8. Step – by- Step On this page you have to start the registration process by clicking New Registration

Guidance for Agent

Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents
 2. Create New Account by giving the following information:-
5.8. Step – by- Step
Guidance for Agent a. Select Real Estate Agent in User Type.
b. Select State Maharashtra
Registration on c. Give User Name, password, Confirm password, Mobile Number and Email ID.
d. Finally fill up the Captcha asked on Login Page and click on “Create User” Button.
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Here you enter all the details and the captcha

5.8. Step – by- Step 3. Once User is created it will ask you to verify it by sending you the
activation link to your email
Guidance for Agent
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents
 5.8. Step – by- Step 4. Please Click on Activation link and Confirmation message will pop
Guidance for Agent up. Click OK on Message Box.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check your email (the same email id you entered) and search for the account activation link
 5.8. Step – by- Step 4. Please Click on Activation link and Confirmation message will pop
Guidance for Agent up. Click OK on Message Box.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop- up confirms the activation is complete

 5.8. Step – by- Step 5. Now Login into the Account by giving your credentials and Captcha
Guidance for Agent provided on page
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This page is where you can login after you create the account
 5.8. Step – by- Step 6. Once you Login, you will be taken to the MahaRERA Home page,
Guidance for Agent wherein from side menu further details are required
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This is the page where you need to select and proceed with the registration.
 5.8. Step – by- Step Guidance for Agent Registration
on MahaRERA Web Portal

5.8.2. Non – Individual Agents

7. From Side Menu, Click on Account and My

Profile link to give Information about Organization
Details by selecting “Information Type” as “Other
Than Individual”. Fill in the Organizational
Information along with the Identity proof with
Photograph.

a. Select other details such as Past experience ,if any,

b. Criminal /Police case pending, if any,
c. Registration as an agent with any other states, if any,
needs to be provided.

Select and fill in the relevant details

 5.8. Step – by- Step 8. Give Organization details by selecting type of an
Guidance for Agent organization from dropdown list, with name and PAN
Number.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

PAN details will be that of Real Estate Agent Organisation.

 5.8. Step – by- Step 8. Give Organization details by selecting type of an
Guidance for Agent organization from dropdown list, with name and PAN
Number.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Enter the business address and contact details here

 5.8. Step – by- Step 8. Give Organization details by selecting type of an
Guidance for Agent organization from dropdown list, with name and PAN
Number.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Here the names of the owners/ directors, their contact details should be filled in
 5.8. Step – by- Step Upload Photo and if needed add other Member details by clicking “Add
Guidance for Agent New Member “and finally save Profile
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Complete all required details here

 5.8. Step – by- Step A Message Box with “Profile Saved Successfully” will pop up. Click
Guidance for Agent OK on Message Box.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop up shows as a confirmation

 9. If on “My Profile” Page past experience is selected as ‘YES’ then, select
5.8. Step – by- Step side menu “Past Experience Details” section. You will be taken to “Agent
Past Experience Details” page. Please fill in the required Past Project Details
Guidance for Agent for work experience details as a Real Estate Agent. Save the details.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Here you can enter all past experiences of projects

 9. If on “My Profile” Page past experience is selected as ‘YES’ then, select
5.8. Step – by- Step side menu “Past Experience Details” section. You will be taken to “Agent
Past Experience Details” page. Please fill in the required Past Project Details
Guidance for Agent for work experience details as a Real Estate Agent. Save the details.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop up shows confirmation of details being added

 5.8. Step – by- Step Add Branch Details from Accounts Side Menu
Guidance for Agent
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Here, enter the communication details of the branch offices.

 5.8. Step – by- Step 10. Once Data is added successfully, Message Box pops up.
Guidance for Agent Select Ok
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop up shows as a confirmation.

 5.8. Step – by- Step
11. If needed other branch details can also be added.
Guidance for Agent
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

In case you have more than one branch office, enter details by adding branch. You can see the list of branches here.
 5.8. Step – by- Step 12. If any criminal or Police case is pending, then please add necessary
Guidance for Agent information as shown below by going to side menu “Add Litigation”.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

In this page you need to enter existing court case details

 5.8. Step – by- Step 13. Click OK on Message Box “Data saved successfully”. If needed
Guidance for Agent please edit the information and save again
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop up shows as a confirmation

 14. Now under Registration Details side menu-Add registration details,
5.8. Step – by- Step if you have real estate registration in other states apart from Maharashtra,
Guidance for Agent then please fill up the details along with registration number and
Registration on documents. Click OK on Message Box to add the details
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Here, enter the details of the States where the organisation has been registered as a real estate agent
 5.8. Step – by- Step 15. Click OK. Once Agent details have been added successfully,
Guidance for Agent message box appears
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This page is where you can login after you create the account
 5.8. Step – by- Step
16. You can edit or delete any registration details if required
Guidance for Agent
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This page lists the entered details

 5.8. Step – by- Step 17. Next From Side Menu, Click on Registration Details and from
“Document Upload “Menu, upload Mandatory documents marked as (*).
Guidance for Agent Click on Upload to save your documents in MahaRERA web portal
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

In this page you are required to upload all required documents

 5.8. Step – by- Step 18. File Uploaded Message Box will appear after your chosen file
Guidance for Agent in .PDF format is uploaded successfully.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This pop up shows as a confirmation

 5.8. Step – by- Step 18. File Uploaded Message Box will appear after your chosen file
Guidance for Agent in .PDF format is uploaded successfully.
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Continue uploading all documents one by one.

 5.8. Step – by- Step 19. Once all files are uploaded, you can click on payment from side
Guidance for Agent menu as shown in image and summary web page will open
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

On this page you need to select payment and the details entered will be shown
 5.8. Step – by- Step 19. Once all files are uploaded, you can click on payment from side
Guidance for Agent menu as shown in image and summary web page will open
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check if all details are correct

 5.8. Step – by- Step 19. Once all files are uploaded, you can click on payment from side
Guidance for Agent menu as shown in image and summary web page will open
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check organization contact details

 5.8. Step – by- Step 19. Once all files are uploaded, you can click on payment from side
Guidance for Agent menu as shown in image and summary web page will open
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check if all required documents have been uploaded

 5.8. Step – by- Step 20. Select Checkbox for Terms and Condition agreement and click on
Guidance for Agent “Confirm and Proceed to Payment“ Button
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check litigation details

 21. Next, For Payment of Registration Fees, after clicking “Payment”
5.8. Step – by- Step Side Menu, the Payment description page would appear with payment
Guidance for Agent process and details for the real estate agent to make payment. Click on
Registration on Make payment or Generate Challan button as per convenience
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This page shows the amount of fees to be paid

 21. Next, For Payment of Registration Fees, after clicking “Payment”
5.8. Step – by- Step Side Menu, the Payment description page would appear with payment
Guidance for Agent process and details for the real estate agent to make payment. Click on
Registration on Make payment or Generate Challan button as per convenience
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Check the fee details and click Make payment

 22. Once you click on the Make Payment button, it will take you to
MahaOnline site showing the payment summary and then you need to
5.8. Step – by- Step proceed with the mode of payment as per your choice.
Guidance for Agent
Registration on
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

Now select the mode of payment and proceed in the same manner as for the individual
registration payment process to complete the non-individual registration
After Submission of Application, Real Estate Agent can view the status of their application on
their homepage.

This page is where you can login after you create the account
 6. Real Estate Project Registration and Promoter Responsibilities

15. Click OK. Once Agent

5.8. Step – by- Step details have been added
Guidance for Agent successfully, message box
Registration on appears
MahaRERA Web Portal
5.8.2. Non – Individual
Agents

This page is where you can login after you create the account
6. Real Estate Project Registration and Promoter Responsibilities

A real estate agent is responsible for facilitating transaction between promoter and allottee,
hence must be aware of various functions and duties of Promoter including Project
Registration, Project Updates, Project Extensions and so on. Hence, this ‘chapter is included in
this handbook for Agents, in order to give them brief information about real estate project
registration and promoter Responsibilities. Promoter is defined as per Section 2 (zk) of the
Act as follows:
“(zk) “promoter” means,—

(i) a person who constructs or causes to be constructed an independent building or a building consisting of
apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or
some of the apartments to other persons and includes his assignees; or

(ii) a person who develops land into a project, whether or not the person also constructs structures on any of the
plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or
without structures thereon; or

(iii) any development authority or any other public body in respect of allottees of—
(a) buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or
placed at their disposal by the Government; or
(b) plots owned by such authority or body or placed at their disposal by the Government, for the purpose of selling
all or some of the apartments or plots; or
Promoter is defined as per Section 2 (zk) of the Act as follows:

(iv) an apex State level co-operative housing finance society and a primary co-operative housing society which constructs
apartments or buildings for its Members or in respect of the allottees of such apartments or buildings; or

(v) any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or
claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is
constructed or plot is developed for sale; or

(vi) such other person who constructs any building or apartment for sale to the general public.

Explanation.—For the purposes of this clause, where the person who constructs or converts a building into apartments
or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall
be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified,
under this Act or the rules and regulations made thereunder;”
Promoter is defined as per Section 2 (zk) of the Act as follows:
Therefore, Promoter includes builder, coloniser, contractor, developer, estate developer etc. who
are responsible for developing and selling real estate project.

Real Estate Project is defined as per Section 2 (zn) of the Act as follows:

“ (zn) “real estate project” means the development of a building or a building consisting of
apartments, or converting an existing building or a part thereof into apartments, or the
development of land into plots or apartment, as the case may be, for the purpose of selling all or
some of the said apartments or plots or building, as the case may be, and includes the common
areas, the development works, all improvements and structures thereon, and all easement, rights
and appurtenances belonging thereto;”

The terms “apartment” and “building” as used in the aforesaid definition which is defined under
the Act not only covers residential projects but also covers commercial projects.

This Act lays down various provisions for ensuring sale of plot, apartment or building, as the case
may be, or sale of real estate project, in an efficient and transparent manner and to protect the
interest of consumers in the real estate sector.
6.1. Registration of Real Estate Projects
One of the key foundation of the Act is Registration of Real Estate Projects.Real estate projects,
with some exceptions, need to be registered with RERAs. Promoters cannot book or offer these
projects for sale without registering them.

Section 3 of the Act provides details on Project Registration as follows:

“3. (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase
in any manner any plot, apartment or building, as the case may be, in any real estate project or
part of it, in any planning area, without registering the real estate project with the Real Estate
Regulatory Authority established under this Act:

Provided that projects that are ongoing on the date of commencement of this Act and for which
the completion certificate has not been issued, the promoter shall make an application to the
Authority for registration of the said project within a period of three months from the date of
commencement of this Act:

Provided further that if the Authority thinks necessary, in the interest of allottees, for projects
which are developed beyond the planning area but with the requisite permission of the local
authority, it may, by order, direct the promoter of such project to register with the Authority, and
the provisions of this Act or the rules and regulations made thereunder, shall apply to such
projects from that stage of registration.
6.1. Registration of Real Estate Projects
Therefore, Promoter includes builder, coloniser, contractor, developer, estate developer etc. who
are responsible for developing and selling real estate project.

Real Estate Project is defined as per Section 2 (zn) of the Act as follows:

“ (zn) “real estate project” means the development of a building or a building consisting of
apartments, or converting an existing building or a part thereof into apartments, or the
development of land into plots or apartment, as the case may be, for the purpose of selling all or
some of the said apartments or plots or building, as the case may be, and includes the common
areas, the development works, all improvements and structures thereon, and all easement, rights
and appurtenances belonging thereto;”

The terms “apartment” and “building” as used in the aforesaid definition which is defined under
the Act not only covers residential projects but also covers commercial projects.

This Act lays down various provisions for ensuring sale of plot, apartment or building, as the case
may be, or sale of real estate project, in an efficient and transparent manner and to protect the
interest of consumers in the real estate sector.
6.1. Registration of Real Estate Projects
Therefore, Promoter includes builder, coloniser, contractor, developer, estate developer etc. who
are responsible for developing and selling real estate project.

Real Estate Project is defined as per Section 2 (zn) of the Act as follows:

“ (zn) “real estate project” means the development of a building or a building consisting of
apartments, or converting an existing building or a part thereof into apartments, or the
development of land into plots or apartment, as the case may be, for the purpose of selling all or
some of the said apartments or plots or building, as the case may be, and includes the common
areas, the development works, all improvements and structures thereon, and all easement, rights
and appurtenances belonging thereto;”

The terms “apartment” and “building” as used in the aforesaid definition which is defined under
the Act not only covers residential projects but also covers commercial projects.

This Act lays down various provisions for ensuring sale of plot, apartment or building, as the case
may be, or sale of real estate project, in an efficient and transparent manner and to protect the
interest of consumers in the real estate sector.
6.1. Registration of Real Estate Projects

(2) Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be required —

(a) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments
proposed to be developed does not exceed eight inclusive of all phases:
Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square
meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act;

(b) where the promoter has received completion certificate for a real estate project prior to commencement of this Act;

(c) for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new
allotment of any apartment, plot or building, as the case may be, under the real estate project.
6.1. Registration of Real Estate Projects
Explanation.—For the purpose of this section, where the real estate project is to be developed in phases, every such
phase shall be considered a stand alone real estate project, and the promoter shall obtain registration under this Act
for each phase separately.”

Therefore, As per Section 3 of the Act, All commercial and residential real estate projects including plotted development shall
have to be registered with MahaRERA, except in projects where:

• Area of land proposed to be developed does not exceed five hundred square meters
Or

• Number of apartments proposed to be developed does not exceed eight inclusive of all phases
Or

• Promoter has received Occupancy Certificate for a real estate project prior to commencement
of this Act

Further, Entire State of Maharashtra (Rural as well as Urban) is under Planning Area of Maharashtra Regional and Town
Planning (MR&TP) Act and hence is covered under MahaRERA.
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot,
apartment or building, as the case may be, in any real estate project or part of it, in any planning area within Maharashtra,
without registering the real estate project with MahaRERA
6.2. Registration Application and Process

The entire Project Registration process is completely digital and MahaRERA commenced online registration process from 1st
May 2017.

The details of Application Form and supporting documents are listed in Section 4 of the Act as follows:

“ 4. (1) Every promoter shall make an application to the Authority for registration of the real estate project in such form,
manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority.

(2) The promoter shall enclose the following documents along with the application referred to in sub- section (1), namely:—

(a) a brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies,
partnership, companies, competent authority), and the particulars of registration, and the names and photographs of the
promoter;

(b) a brief detail of the projects launched by him, in the past five years, whether already completed or being developed, as the
case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of
type of land and payments pending;
6.2. Registration Application and Process

(c) an authenticated copy of the approvals and commencement certificate from the competent authority obtained in accordance
with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed
to be developed in phases, an authenticated copy of the approvals and commencement certificate from the competent authority
for each of such phases;

(d) the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as
sanctioned by the competent authority;

(e) the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof
including fire fighting facilities, drinking water
facilities, emergency evacuation services, use of renewable energy;

(f) the location details of the project, with clear

demarcation of land dedicated for the project along
with its boundaries including the latitude and longitude
of the end points of the project;

(g) proforma of the allotment letter, agreement for

sale, and the conveyance deed proposed to be
signed with the allottees;
(h) the number, type and the carpet area of apartments for sale in the project along with the
area of the exclusive balcony or verandah areas and the exclusive open terrace areas apartment with the apartment, if any;

(i) the number and areas of garage for sale in the project;

(j) the names and addresses of his real estate agents, if any, for the proposed project;

(k) the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the
development of the proposed project;

(l) a declaration, supported by an affidavit, which shall be signed by the promoter or any person authorised by the promoter,
stating:—

(A) that he has a legal title to the land on which the development is proposed along with legally valid documents with
authentication of such title, if such land is owned by another person;
(B) that the land is free from all encumbrances, or as the case may be details of the encumbrances on such land including any
rights, title, interest or name of any party in or over such land along with details;
(C) the time period within which he undertakes to complete the project or phase thereof, as the case may be;
(D) that seventy per cent. of the amounts realised for the real estate project from the allottees, from time to time, shall be
deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and
shall be used only for that purpose:
6.2. Registration Application and Process

Provided that the promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in
proportion to the percentage of completion of the project:

Provided further that the amounts from the separate account shall be withdrawn by the promoter after it is certified by an
engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of
completion of the project:

Provided also that the promoter shall get his accounts audited within six months after the end of every financial year by a
chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered
accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for the
project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

Explanation.— For the purpose of this clause, the term “schedule bank” means a bank included in the Second Schduled
to the Reserve Bank of India Act, 1934;

(E) that he shall take all the pending approvals on time, from the competent authorities;
(F) that he has furnished such other documents as may be prescribed by the rules or regulations made under this Act; and
(m) such other information and documents as may be prescribed.
6.2. Registration Application and Process

(3) The Authority shall operationalise a web based online system for submitting applications for registration of projects within
a period of one year from the date of its establishment.”

This section lists all the documents and information to be submitted by the Promoter for Registration of Project. MahaRERA
makes available all this information (apart from personal information of Promoters like PAN Number etc.) for public viewing
through their portal so that homebuyers can make informed decision making. In earlier chapter, the procedure to view these
details on MahaRERA web portal was listed in detail.

Another important information to be submitted by Promoter is as per Section 4 (2) (j), wherein promoter has to provide list of
Real Estate Agents allowed to facilitate booking or sale of the apartments in the projects. Only those Real Estate Agents listed
by Promoter in this section are authorized to market, advertise or facilitate sale in the real estate project. The promoter can
update this list on regular basis.
6.2. Registration Application and Process

On submission of Application for Project Registration, the Authority follows the procedure as listed in Section 5 of the Act for
granting registration.

“5. (1) On receipt of the application under sub-section (1) of section 4, the Authority shall within a period of thirty days.

(a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder, and provide a
registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to
create his web page and to fill therein the details of the proposed project; or

(b) reject the application for reasons to be recorded in writing,if such application does not conform to the provisions of this
Act or the rules or regulations made thereunder:
Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.
6.2. Registration Application and Process

(2) If the Authority fails to grant the registration or reject the application, as the case may be, as provided under sub-section
(1), the project shall be deemed to have been registered, and the Authority shall within a period of seven days of the expiry of
the said period of thirty days specified under sub-section (1), provide a registration number and a Login Id and password to
the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the
proposed project.

(3) The registration granted under this section shall be valid for a period declared by the promoter under sub-clause (C) of
clause (1) of sub-section (2) of section 4 for completion of the project or phase thereof, as the case may be.”
6.2. Registration Application and Process

On receiving the application, the authority scrutinizes the application and grants Project Registration on satisfaction of all
terms and conditions. The registration is valid from date of issuance of Registration Certificate to Date of Completion of
Project as provided by Promoter during the Registration Application.

The Authority strives to provide the registration certificate within 30 days of receipt of complete application. The promoter
may apply for withdrawal of application for registration of the real estate project before the expiry of the period of 30 days of
its submission and before MahaRERA has approved registration. Rs. 5000 is retained as administrative charges, in withdrawal
cases.
6.3. Extension of Registration

In exceptional situations, MahaRERA allows for extension of validity of Project Registrations as per provisions of Section 6
of the Act.

“6. The registration granted under section 5 may be extended by the Authority on an application made by the promoter due to
force majeure, in such form and on payment of such fee as may be prescribed:
Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of
each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers
necessary, which shall, in aggregate, not exceed a period of one year:

Provided further that no application for extension of registration shall be rejected unless the applicant has been given an
opportunity of being heard in the matter.
6.3. Extension of Registration

Explanation.— For the purpose of this section, the expression “force majeure” shall mean a case of war, flood, drought,
fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate
project.”

Due to Force Majeure reasons, Promoter can apply for extension of validity of Project Registration with such supporting
documents and fees as prescribed by authority. The authority without default on the part of the promoter based on the facts of
each case extend the registration granted to a project on scrutiny and satisfaction, and for such time provided that such period
shall not exceed more than one year in aggregate.
6.4. Revocation of Registration

In case a promoter is non-compliant with the provisions of the Act, Rules and Regulations made thereunder, then the Authority
can revoke the project registration. Subsequent to revocation, the promoter will not be able to market, advertise or sell his
project. The Bank Account of the Project may be frozen by the authority and the promoter shall be listed on the website as a
defaulter.

The Revocation procedure is as per Section 7 of the Act:

“7 (1)The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent
authority, revoke the registration granted under section 5, after being satisfied that—

(a) the promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder;

(b) the promoter violates any of the terms or conditions of the approval given by the competent authority;

(c) the promoter is involved in any kind of unfair practice or irregularities.

6.4. Revocation of Registration
Explanation.—For the purposes of this clause, the term “unfair practice means” a practice which, for the purpose of promoting
the sale or development of any real estate project adopts any unfair method or unfair or deceptive practice including any of the
following practices, namely:—

(A) the practice of making any statement, whether in writing or by visible representation which,—

(i) falsely represents that the services are of a particular standard or grade;

(ii) represents that the promoter has approval or affiliation which such promoter does not have;

(iii) makes a false or misleading representation concerning the services;

(B) the promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of
services that are not intended to be offered;

(d) the promoter indulges in any fraudulent practices.”

6.4. Revocation of Registration
Revocation proceedings can be initiated by authority on its own or on receipt of any complaint. The project registration can be
revoked if the promoter has violated any provisions of the Act, Rules and Regulations or indulged in any unfair or fraudulent
practice.

Any deceptive practice used to carry forward the sale or development of the real estate project maybe a ground for revocation
of the registration for such a project including-

• false representation of the availability of services of certain standards made through

advertisements, hoardings, brochures etc.

• false representation made by the promoter of having any approvals or affiliations which he does
not have.

• indulging in any fraudulent practice.

• publication of such services which are not intended to be offered.

6.4. Revocation of Registration

“7(2) The registration granted to the promoter under section 5 shall not be revoked unless the Authority has given to the
promoter not less than thirty days notice, in writing, stating the grounds on which it is proposed to revoke the registraton, and
has considered any cause shown by the promoter within the period of that notice against the proposed revocation.”

The project registration shall not be revoked until the complete procedure has been followed. Authority shall give thirty days
notice to the promoter and heard the submissions of the promoter, if any.

“7 (3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to
such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so
imposed shall be binding upon the promoter.”

Further, the authority may instead of revoking the registration, permit the project registration to remain in force and impose
specific terms and conditions in interest of allottees and completion of project. Such additional terms and conditions are
binding on the promoter and have to be followed diligently.
6.4. Revocation of Registration

“ 7 (4) The Authority, upon the revocation of the registration,—

(a)shall debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters
and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and
Union territories about such revocation or registration;

(b) shall facilitate the remaining development works to be carried out in accordance with the provisions of section 8;

(c) shall direct the bank holding the project back account, specified under subclause (D) of clause (I) of sub-section (2) of
section 4, to freeze the account, and thereafter take such further necessary actions, including consequent de-freezing of the
said account, towards facilitating the remaining development works in accordance with the provisions of section 8;

(d) may, to protect the interest of allottees or in the public interest, issue such directions as it may deem necessary.”
6.4. Revocation of Registration

Upon revocation of registration of the real estate project following shall be consequences:

•the promoter will not be allowed to market, advertise or sell the concerned real estate project

• The promoter will not be allowed to access the project on the MahaRERA website

• The Promoter will be listed as a defaulter on the MahaRERA website and his name and photograph shall be displayed
prominently. Further the list of defaulting promoters shall be shared to all RERAs across India.

• The Authority shall freeze projects bank account and promoter shall not have access to any of the funds.

• The Authority will inform and discuss with the State government about the project whose registration has been cancelled and
then decide if the completion of that project can be done by a suitable authority or the allotees association. The allottees will
be asked first if they prefer to self develop the project and only if they do not accept, will the Authority hand over the
completion responsibility to another competent authority as per section 8 of the Act as follows:
6.4. Revocation of Registration

“8. Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the
appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works
by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority:

Provided that no direction, decision or order of the Authority under this section shall take effect until the expiry of the period
of appeal provided under the provisions of this Act:

Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the
first right of refusal for carrying out of the remaining development works”

The appropriate Government will be consulted by authority to take such action which will also include carrying out of the
balance work by the Competent authority / Association of Allottees as in any other manner. The action as above shall have to
be taken by the authority by passing an order / direction and such order of the authority shall take effect after 60 days which is
the time period within which an appeal is required to be filed. Further, the Association of Allottees has the first right of refusal
for carrying out of the remaining development work.
6.5. Functions and Duties of Promoter

Being an intermediary, a Real Estate Agent must have full knowledge of the functions and duties of promoter, hence this
section is included in this handbook.

The Act emphasizes on accountability and therefore, provides list of responsibilities for all stakeholders. Various Functions
and Duties of Promoters are detailed in section 11, 12, 13,14,15, 17 and 18 of the Act. In this section, we shall list various
functions and duties of Promoters.

(i) Ensuring Quarterly update of progress of the Project

“11. (1) The promoter shall, upon receiving his Login Id and password under clause (a) of sub-section (1) or under sub-section
(2) of section 5, as the case may be, create his web page on the website of the Authority and enter all details of the proposed
project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including—
6.5. Functions and Duties of Promoter

(a) details of the registration granted by the Authority;

(b) quarterly up-to-date the list of number and types of apartments or plots, as the case may be, booked;

(c) quarterly up-to-date the list of number of garages booked;

(d) quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement
certificate;

(e) quarterly up-to-date status of the project; and

(f) such other information and documents as may be specified by the regulations made by the Authority”
6.5. Functions and Duties of Promoter

In order to ensure that homebuyers can track the progress of the project online, promoter has to keep updating the progress of
the project on quarterly basis. Upon receiving registration certificate, the promoter has to ensure quarterly updates of various
details of project including

• list of number and types of apartments or plots, as the case may be, booked;

• list of number of garages booked;

• list of approvals taken and the approvals which are pending subsequent to commencement
certificate;

• Financial and Physical status of the project

• Other updates in the project

• such other information and documents as may be specified by the regulations made by the
Authority
6.5. Functions and Duties of Promoter

(ii) Veracity of Advertisements or Prospectus.

“11(2) The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of
the Authority, wherein all details of the registered project have been entered and include the registration number obtained from
the Authority and such other matters incidental thereto”

All the marketing collaterals of the Promoter should prominently mention the MahaRERA Project Registration number so that
Allottee can easily verify the details of the project online.
6.5. Functions and Duties of Promoter

“12. Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or
prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by
reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided
under this Act:

Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or
the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned
his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under
this Act.”

If any allottee has been adversely affected due to wrong information provided in the advertisement or prospectus, he shall be
compensated by the promoter in the manner as provided under this Act. Further, if allottee wants to withdraw due to wrong
information, he can withdraw and he shall be returned his entire investment along with interest at such rate as may be
prescribed.
6.5. Functions and Duties of Promoter

(iii) End to End Responsibility till Conveyance of the Project.

“11(3) The promoter at the time of the booking and issue of allotment letter shall be responsible to make available to the
allottee, the following information, namely:—

(a) sanctioned plans, layout plans, along with specifications, approved by the competent authority, by display at the site or
such other place as may be specified by the regulations made by the Authority;

(b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water,
sanitation and electricity.
6.5. Functions and Duties of Promoter

11(4) The promoter shall—

(a) be responsible for all obligations, responsibilties and functions under the provisions of this Act or the rules and
regulations made thereunder or to the allottees as per the agreement for sale, or to the association of allottees, as the case
may be, till the conveyance of all the apartments, plots or buildings, as the case may be, to the allottees, or the common areas
to the association of allottees or the competent authority, as the case may be:

Provided that the responsibility of the promoter, with respect to the structural defect or any other defect for such period as is
referred to in sub-section (3) of section 14, shall continue even after the conveyance deed of all the apartments, plots or
buildings, as the case may be, to the allottees are executed.

(b) be responsible to obtain the completion certificate or the occupancy certificate, or both, as applicable, from the relevant
competent authority as per local laws or other laws for the time being in force and to make it available to the allottees
individually or to the association of allottees, as the case may be;
6.5. Functions and Duties of Promoter

(c) be responsible to obtain the lease certificate, where the real estate project is developed on a leasehold land, specifying the
period of lease, and certifying that all dues and charges in regard to the leasehold land has been paid, and to make the lease
certificate available to the association of allottees;

(d) be responsible for providing and maintaining the essential services, on reasonable charges, till the taking over of the
maintenance of the project by the association of the allottees;

(e) enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a
federation of the same, under the laws applicable:

Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a
period of three months of the majority of allottees having booked their plot or apartment or building, as the case may be, in the
project;
6.5. Functions and Duties of Promoter

(f) execute a registered conveyance deed of the apartment, plot or building, as the case may be, in favour of the allottee along
with the undivided proportionate title in the common areas to the association of allottees or competent authority, as the case
may be, as provided under section 17 of this Act;

(g) pay all outgoings until he transfers the physical possession of the real estate project to the allottee or the associations of
allottees, as the case may be, which he has collected from the allottees, for the payment of outgoings (including land cost,
ground rent, municipal or other local taxes, charges for water or electricity, maintenance charges, including mortgage loan
and interest on mortgages or other encumbrances and such other liabilities payable to competent authorities, banks and
financial institutions, which are related to the project):

Provided that where any promoter fails to pay all or any of the outgoings collected by him from the allottees or any liability,
mortgage loan and interest thereon before transferring the real estate project to such allottees, or the association of the
allottees, as the case may be, the promoter shall continue to be liable, even after the transfer of the property, to pay such
outgoings and penal charges, if any, to the authority or person to whom they are payable and be liable for the cost of any legal
proceedings which may be taken therefor by such authority or person;
6.5. Functions and Duties of Promoter

Provided that where any promoter fails to pay all or any of the outgoings collected by him from the allottees or any liability,
mortgage loan and interest thereon before transferring the real estate project to such allottees, or the association of the
allottees, as the case may be, the promoter shall continue to be liable, even after the transfer of the property, to pay such
outgoings and penal charges, if any, to the authority or person to whom they are payable and be liable for the cost of any legal
proceedings which may be taken therefor by such authority or person;

(h) after he executes an agreement for sale for any apartment, plot or building, as the case may be, not mortgage or create a
charge on such apartment, plot or building, as the case may be, and if any such mortgage or charge is made or created then
notwithstanding anything contained in any other law for the time being in force, it shall not affect the right and interest of the
allottee who has taken or agreed to take such apartment, plot or building, as the case may be;”
6.5. Functions and Duties of Promoter

The promoter shall be responsible for be responsible for all obligations, responsibilities and functions under the provisions of
this Act or the rules and regulations including:

• Completion of all obligations as listed in Agreement of Sale or Allotment Letter or as per Act, Rules and Regulations till the
conveyance of all the apartments, plots or buildings, as the case may be, to the allottees, or the common areas to the
association of allottees or the competent authority, as the case may be.

• Obtaining Occupancy Certificate from the relevant competent authority

• Obtaining the lease certificate, where the real estate project is developed on a leasehold land, specifying the period of lease,
and certifying that all dues and charges in regard to the leasehold land has been paid

• pay all outgoings until transfer of physical possession of the real estate project to the allottee or
the associations of allottees

• other obligations as defined in agreement of sale or allotment letter

6.5. Functions and Duties of Promoter

(iv) Formation of Association of Allottees

Promoter is responsible for formation of Association of Allotees within 3 months of the majority of allottees having booked
their plot or apartment or building. This is an important responsibility empowering association of allottees to work with
promoter in completion of project.

(v) Conveyance of Common Areas

Promoter is responsible for conveyance of all common areas in favour of association of allottees or competent authority

Promoter is responsible for executing a registered conveyance deed in favour of the allottees along with the undivided
proportionate title in the common area to the association of the allottees or the competent authority as the case may be, within
30 days from the date of issuance of occupancy certificate.

As per Rule 9 (2) (ii) of the MAHARERA Rules, 2017, if no period for conveying the title of the Promoter to the legal entity of
the allottees is agreed upon, the promoter shall execute the conveyance within three months from the date of issue of
occupancy certificate or 50% of the total number of allottees in such a building or a wing, have paid the full consideration to
the promoter, whichever is earlier.
6.5. Functions and Duties of Promoter

(vi) Cancellation of Allotment

Promoter can cancel allotment to an allottee only as per agreement of sale. Allottee shall have the right to approach authority
in case of grievance.

(vii) Not more than 10% deposit or advance to be taken by promoter without first entering into agreement for sale.

As per Section 13 of the Act:

“13. (1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case
may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale
with such person and register the said agreement for sale, under any law for the time being in force.
6.5. Functions and Duties of Promoter

(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the
particulars of development of the project including the construction of building and apartments, along with specifications and
internal development works and external development works, the dates and the manner by which payments towards the cost
of the apartment, plot or building, as the case may be, are to be made by the allottees and the date on which the possession of
the apartment, plot or building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee
to the promoter in case of default, and such other particulars, as may be prescribed.”

Promoter shall not accept more than 10% of the cost of the Apartment from the Allottees as and by way of advance
/application fee without executing and registering the agreement for sale.
The Agreement for Sale shall be in a form and manner prescribed by MahaRERA in the Rules.
6.5. Functions and Duties of Promoter

(viii) Adherence to Plans

As per Section 14(1) and 14(2) of the Act:

“14. (1) The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans,
layout plans and specifications as approved by the competent authorities.

(2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans, layout plans and
specifications and the nature of the fixtures, fittings, amenities and common areas, of the apartment, plot or building, as the
case may be, as approved by the competent authority, are disclosed or furnished to the person who agree to take one or more
of the said apartment, plot or building, as the case may be, the promoter shall not make—
6.5. Functions and Duties of Promoter

(i) any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and
amenities described therein in respect of the apartment, plot or building, as the case may be, which are agreed to be taken,
without the previous consent of that person:

Provided that the promoter may make such minor additions or alterations as may be required by the allottee, or such minor
changes or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by an
authorised Architect or Engineer after proper declaration and intimation to the allottee.

Explanation.—For the purpose of this clause, “minor additions or alterations” excludes structural change including an addition
to the area or change in height, or the removal of part of a building, or any change to the structure, such as the construction or
removal or cutting into of any wall or a part of a wall, partition, column, beam, joist, floor including a mezzanine floor or
other support, or a change to or closing of any required means of access ingress or egress or a change to the fixtures or
equipment, etc.
6.5. Functions and Duties of Promoter

(ii) any other alterations or additions in the sanctioned plans, layout plans and specifications of the buildings or the common
areas within the project without the previous written consent of at least two-thirds of the allottees, other than the promoter,
who have agreed to take apartments in such building.

Explanation.—For the purpose of this clause, the allottees, irrespective of the number of apartments or plots, as the case may
be, booked by him or booked in the name of his family, or in the case of other persons such as companies or firms or any
association of individuals, etc., by whatever name called, booked in its name or booked in the name of its associated entities
or related enterprises, shall be considered as one allottee only.”

Promoter shall not make any additions and/or alterations in the sanctioned plans, layout plans and specifications in an
apartment, without obtaining the previous consent of the Allottee concerned.

Further, Promoter shall not make any major additions and/or alterations in the sanctioned plans, layout plans and
specifications of the buildings or the common areas without previous sanction of at least 2/3rd of the allottees (other than the
promoter);
6.5. Functions and Duties of Promoter

(ix) Defect Liability Period of five years

As per Section 14(3) of the Act:

“14 (3) In case any structural defect or any other defect in workmanship, quality or provision of services or any other
obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter
within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to
rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects
within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under
this Act.”

Defect liability period shall be 5 (five) years from handing over possession of the apartments to allottees.
In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations,
within a period of five years , the promoter would have to rectify such defects without further charge, within thirty days of
complaint by allottee.
6.5. Functions and Duties of Promoter

(x) Assignment / Transfer of Project

As per Section 15 of the Act, Promoter shall not transfer or assign his majority rights and liabilities in a project without prior
written consent of 2/3rd allottees and the Authority

Any transfer / assignment does not result in extension of time and the incoming promoter shall be required to comply with all
the pending obligations of the erstwhile promoter, and in case of default, such incoming promoter shall be liable to the
consequences of breach or delay,
6.5. Functions and Duties of Promoter

(xi) Interest for delayed posession

As per Section 18(1) of the Act:

“18. (1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building ,—

(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein;
or

(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this
Act or for any other reason, he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the
project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment,
plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the
manner as provided under this Act:

Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for
every month of delay, till the handing over of the possession, at such rate as may be prescribed.”
6.5. Functions and Duties of Promoter

In case of delay in completion of project, allottee shall

be paid, by the promoter, interest for every month of
delay, till the handing over of the possession, at such
rate as may be prescribed.

In case Allottee doesn’t want to continue due to

delayed possession, the promoter shall refund the
amounts invested by the allottee along with interest as
prescribed.
7. Allottees and their responsibilities

For any query or problem, the allottees will first contact the
real estate agent through whom they have booked or
purchased the apartment. The agent may be required to
intervene, guide the allottee and help him in seeking
remedy or in dispute resolution. Hence, Real Estate Agent
Should be equipped with knowledge on rights and duties of
allottees

According to the Real Estate (Regulation and

Development) Act 2016, an Allotee is a person to
whom, a plot, an apartment or a building has been
allotted, sold or transferred by the promoter.
In common words we term them as Home buyer or
purchaser. It also includes person who subsequently
acquires the said allotment through sale, transfer or
otherwise. But the definition of

“Allottee” does not include a person to whom land or

apartment is give on rental basis.
The various rights and duties of allottees are provided below:

The Act provides for various Rights and Duties of the allottees in Section 19, which are detailed in following sections.

7.1. Rights of Allottees

The various rights and duties of allottees are provided below:

(i) Access To Information

“19 (1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the
specifications, approved by the competent authority and such other information as provided in this Act or the rules and
regulations made thereunder or the agreement for sale signed with the promoter.

(2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for
water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance
with the terms and conditions of the agreement for sale.”
The various rights and duties of allottees are provided below:

Allottees are entitled to obtain information on project including the following.

• Information regarding sanctioned plans, layout plans along with specifications approved by the
competent authorities,

• Information regarding stage wise completion of project including provisions of water, sanitation,
and electricity and other amenities and services according to the clauses of Agreement of Sale.
The various rights and duties of allottees are provided below:

MahaRERA provides all information made available by promoter online, ensuring online access by allottees.

(ii) Entitled to Occupancy / Completion Certificate

Promoter is responsible to acquire Completion / Occupancy Certificate from competent authority and make available the same
to the allottees

(iii) Entitled to Remedy by Approaching Rera against Wrongful Cancellation of Allotment: The cancellation by the
promoter can be said to be wrongful only if all these conditions are satisfied

a. It is not in accordance with the Agreement of Sale

b. If is unilateral i.e. it not a cancellation by mutual agreement of parties

c. It is without sufficient cause.

The allottees may approach the authority for getting remedy against wrongful cancellation of agreement by promoters.
The various rights and duties of allottees are provided below:

(iv) Entitled to Claim Compensation & Interest

“19 (4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed
and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to
give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or
due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the
provisions of this Act or the rules or regulations made thereunder.”

The allottees are entitled to get back their amount invested, along with interest and compensation if promoters are not giving
possession as per schedule or in accordance with the Agreement of Sale or if promoters have breached any terms and
conditions of the Agreement of Sale. The interest shall be payable at prescribed rate and the compensation will be calculated
according to the provisions of
Section 19(4) of the Act.

In case of failure by the promoter, to hand over the physical possession according to the terms of Agreement of Sale and the
allottee intends to continue in the project, then the promoter is liable to pay allottee monthly interest at such rate as may be
prescribed by the RERA.
The various rights and duties of allottees are provided below:

(v) Entitled To Claim Compensation for Loss Caused By Defective Title

If a project has been developed on a land for which promoter has defective title then any loss caused to the allottees, will be
compensated by the promoter and claim of such compensation will not be barred by law of limitation.

(vi) Entitled To Execution of Registered Conveyance Deed

The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of
allottees shall be entitled to claim the possession of the common areas.
7.2. Obligations of Allottees

Under the Act, Allottees also have some obligations which they have implement. These include:

“19 (6) Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case may be,
under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said
agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and
electricity charges, maintenance charges, ground rent, and other charges, if any”

Allottees are responsible to make necessary payments as per the schedule in the agreement for sale on timely basis.

Allottees are also responsible to pay their share of the registration charges, municipal taxes, water and electricity charges,
maintenance charges, ground rent, and other charges.

“19 (7) The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any
amount or charges to be paid under sub-section (6).”

Incase of delay in payment by allottee, they are liable to pay interest for delay at such rate as maybe prescribed.
7.2. Obligations of Allottees

“19 (9) Every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an
association or society or cooperative society of the allottees, or a federation of the same.”

Every allottee shall participate towards formation of Association of Allottees

“19 (10) Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of
two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be”

Every allottee shall be responsible to take physical possession take physical possession of the apartment, plot or building
within a period of two months of the occupancy certificate

- “19(11) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the
case may be, as provided under sub-section (1) of section 17 of this Act.”

Every allottee shall participate towards registration of the conveyance deed

- Every Allottee has to follow the provisions of Act, Rules and Regulations made thereunder including orders of Authority.
7.3. Dispute Resolution

One of the key objectives of the act is to ensure speedy dispute resolution. Therefore, MahaRERA provides four forums for
dispute resolution namely complaints, adjudication, conciliation and appeals. The details of these forums are explained in
following sections.
7.3.1. Complaints

As per 31(1) of the Act, any aggrieved person may file a complaint with the Authority for any violation or contravention of the
provisions of this Act or the rules and regulations made thereunder against any promoter allottee or real estate agent.

“31. (1) Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any
violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter
allottee or real estate agent, as the case may be.

Explanation.—For the purpose of this sub-section “person” shall include the association of allottees or any voluntary
consumer association registered under any law for the time being in force.”

MahaRERA accepts complaints against MahaRERA Registered projects only.

The aggrieved person can file complaints online. The fees for filing a complaint is Rs. 5000. The mode of payment is NEFT or
RTGS System or any other digital transaction mode.

Any interested party including Allottee, Promoter and Real Estate Agents can file complaints.
7.3.1. Complaints

The aggrieved person can file an application online as per format provided by MahaRERA. It shall include the following details:

• Registration number of the project to which the complaint pertains

• Particulars of the complainant and respondent

• Facts of the case

• Relief Sought

• List of Enclosures and so on

Complainant can appear and plead his/her/its case

in person or authorize one or more chartered
accountants or company secretaries or cost
accountants or legal practitioners or any of its
officers (hereinafter referred to as “the authorized
representatives” ) to present his/her/their case before
the Authority or the Adjudicating Officer, as the case
mav be.
The detailed SoP ( Standard Operating Procedure) for filing a complaint is as follows:

Steps Description Details

Step 1 Complainant files com- plaint online through Ma- — Complaints can only be filed against registered projects by aggrieved persons
haRERA portal- having interest in the said regis- tered project.

https://maharerait.maha- online.gov.in/ — While filing the complaint, the complainant shall upload all relevant
documents and supportings.

Step 2 Once complaint is re- ceived online, it is as- — Chairperson, Member 1 and Member 2 shall each be as- signed a legal officer
signed automatically by the software to Chairper-
— Incase if a person seeks compensation, then as per sec- tions 12,14, 18 and 19
son, Member 1 and Mem- ber 2 respectively
of the Real Estate (Regulation and Development) Act, 2016, the case can be
transferred to the adjudicating officer for hearing

— If there are numerous complaints based on same facts and for same relief
received against the same promoter, then these complaints can be clubbed and
assigned to any one bench for hearing
The detailed SoP ( Standard Operating Procedure) for filing a complaint is as follows:

Step 3: Legal Wing of MahaRERA shall schedule first - Notice of hearing to parties(complainant and re- spondent) shall be issued.

hearing date and communicate to the

- The complaint details shall also be visible at the complainant and
parties(complainant and respondent)
promoter dashboards.

Step 4: After hearing, Ruling of the authority shall be - The orders shall be uploaded online against the re- spective registered

upload- ed and mailed to the par- ties projects

Step 5 In case, hearing is ad- journed, step 3 and 4 shall Step 5

be repeated
7.3.2. Adjudication

For the purpose of adjudging compensation under sections 12, 14, 18 and section 19, the Authority has appointed
Adjudicating officers for holding an inquiry.

Any aggrieved person may file a complaint, including the claim for compensation with the Authority, for any violation or
contravention of the provisions of this Act or the rules and regulations and such matters where an adjudication regarding
compensation under section 12, 14, 18 and 19 of the Act is to be made, such matters are referred by the Authority to an
adjudicating officer

The application for adjudging compensation is dealt with by the adjudicating officer as expeditiously as possible
7.3.3. Conciliation

As per Section 32 (g) of the Real Estate (Regulation and Development) Act 2016, Maharashtra Real Estate Regulatory
Authority must take measures to facilitate amicable conciliation of disputes between the promoters and the allottees through
dispute settlement forums set up by the consumer or promoter associations.

With this objective, MahaRERA Conciliation and Dispute Resolution Forum was established to facilitate.

resolution of disputes amicably, thereby saving cost and time of litigation to parties and State, promoting greater public
satisfaction with legal system and dispute resolution.

The key objective of MahaRERA Conciliation and Dispute Resolution Forum is to facilitate amicable resolution of disputes
including

a) Constitute / Establish panel of eminent conciliators representing consumer association and promoters’ association

b) Promote and popularise the amicable and effective settlement of disputes arising with reference to Real Estate (Regulation
and Development) Act 2016, with various Alternate Dispute Resolution (ADR) mechanism.
7.3.3. Conciliation

c) Popularize conciliation as an effective dispute resolution mechanism with moderate cost (cost effective) and speedy
settlement of commercial disputes.

d) Co-ordinate/Assist ADR proceedings by establishing facilities and providing administrating services.

e) Finally, providing the best platform for ADR.

Composition and Location of Conciliation

At the beginning, in January, 2018, 15 conciliation benches were established of which 10 benches were in Mumbai
Metropolitan Region (MMR) and 5 benches in Pune Region. Each bench has one conciliator representing the Consumer body
and one from promoter body.
Having observed the benefits of this initiative, MahaRERA received requests to enhance conciliation benches in other cities
also. Accordingly, MahaRERA has now increased the number of benches.
Procedure of Conciliation

The following procedure is prescribed in the matter of hearing to be conducted by the MahaRERA

Conciliation and Dispute Resolution Forum in referred conciliation matters (online complaints) transferred
by MahaRERA so as to achieve speedy disposal of complaints.

1) Only Disputes between promoters and allotees which are under purview of Real Estate (Development and Regulation) Act
2016, Rules and Regulations made thereunder shall be admissible by the Forum.

2) The procedure for online application and subsequent closure shall be as prescribed.

• The allottee needs to register on the conciliation forum application portal.

• After successful login, he/she needs to complete the conciliation request form for raising his/
her request.

• The other party will be intimated regarding the request through both SMS and e-Mail. After
getting the request they need to click on the confirmation link.
Procedure of Conciliation

Online Cancellation Process

Online
Conciliation Mutually
Request Online Online Conciliation
win-win
application by Consent by Payment by Hearings
Settlement
grieving party Other Party First Party

• After the confirmation is received, the payment option will be made available against the conciliation
request for the allottee.

• After successful payment, a conciliation bench will be allocated based upon availability. Same will
be intimated to both the parties via SMS & e-mail.

• In case of successful conciliation, after the conciliation hearing the parties will be required to sign a
conciliation agreement, which will be uploaded for closing the request.
Procedure of Conciliation

3) Role of conciliator

• The conciliators shall assist the parties in an independent and impartial manner in their attempt to
reach an amicable settlement of their dispute.

• The conciliators shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other
things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the
dispute, including any previous business practices between the parties.

• The conciliators may conduct the conciliation proceedings in such a manner as they consider appropriate, taking into account
the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliators hear
oral statements, and the need for a speedy settlement of the dispute.

• The conciliators may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such
proposals need not be writing and need not be accompanied by a statement of the reasons therefore.
Procedure of Conciliation

4) Settlement of Dispute

• If the parties reach agreement on a settlement of the dispute, they may draw up and sign Terms of
Settlement.

• When the parties sign the settlement agreement, it shall be final and binding on the parties and
persons claiming under them respectively.

• The conciliators shall authenticate the settlement agreement and furnish a copy thereof to each of
the parties.
Procedure of Conciliation

5) Non-Compliance - The parties concerned shall comply with the terms of settlement. Non-compliance of the terms by either
party shall give the other party right to approach the MahaRERA. In case of further complaint to MAHARERA by the parties
in the same subject, MAHARERA authority shall take cognizance of any such agreed terms of Conciliation.

6) Resort to arbitral or judicial proceedings - the parties shall not initiate, during the conciliation proceedings, any arbitral or
judicial proceedings in respect of a dispute that is the subject-matter of the conciliation proceedings except that a party may
initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving his rights.
7.3.4. Appeals

State government appointed permanent Maharashtra Real Estate Appellate Tribunal (MahaREAT) vide notification dated
8th May 2018. Oath Ceremony of the first Appellate Tribunal was undertaken on 24th December 2018.

As per the Act, any person aggrieved by any direction or order or decision of the Authority or the adjudicating officer may
prefer an appeal to the Appellate Tribunal.

Every appeal should be preferred within a period of sixty days from the date on which a copy of the direction or order or
decision made by the Authority or the adjudicating officer is received by the aggrieved person. However, the Appellate
Tribunal may entertain any appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not filling it
within that period.

On receipt of an appeal, the Appellate Tribunal may after giving the parties an opportunity of being heard, pass such orders,
including interim orders, as it thinks fit.

Any person aggrieved by the order of Appellate Tribunal can file an appeal to High Court.
7.4. Penal Provisions

The Act provides for penal provisions against various stakeholders including promoter, agents and allottees for non-
compliance of provisions of the Act.

7.4.1. Penal Provisions for Promoters

The Act Provides for five main types of penal provisions against promoter, under Section 59, 60, 61, 63 and 64, as
follows:

(i) Punishment for non-registration of Real Estate Project: If any promoter doesn’t register the project and indulges in
marketing or advertisement or sale of project then he shall be liable to a penalty upto ten per cent. of the cost of the real
estate project

If it continues to violate the provisions and doesn’t comply with the orders of authority in this matter then he shall be
punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further
ten per cent. of the cost of the real estate project, or with both.
7.4.1. Penal Provisions for Promoters

(ii) Penalty for false information in registration application: If any promoter provides false information during registration
application, he shall be liable to a penalty which may extend up to five per cent of the estimated cost of the real estate project.

(iii) Penalty for contravention of the provisions of the Act: If any promoter contravenes any other provisions of this Act or the
rules or regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent of the estimated cost
of the real estate project.

(iv) Penalty for failure to comply with orders of Authority by promoter: If any promoter fails to comply with, or contravenes
any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default
continues, which may cumulatively extend up to five per cent of the estimated cost of the real estate project.

(v) Penalty for failure to comply with orders of Appellate Tribunal by promoter If any promoter fails to comply with, or
contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for
a term which may extend up to three years or with fine for every day during which such default continues, which may
cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both.
7.4.2. Penal Provisions for Real Estate Agents

The Act Provides for three main types of penal provisions against Real Estate Agents, under Section 62, 65 and 66, as
follows:

(i) Punishment for non-registration & Contravention of provisions of Act: If any real estate agent fails to register or comply
with or contravenes the provisions of Act, he shall be liable to a penalty of ten thousand rupees for every day during which
such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, for which
the sale or purchase has been facilitated.

(ii) Penalty for failure to comply with orders of Authority by agent: If any agent fails to comply with, or contravenes any of the
orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which
may cumulatively extend up to five per cent of the estimated cost of the cost of plot, apartment or buildings, for which the sale
or purchase has been facilitated.

(iii) Penalty for failure to comply with orders of Appellate Tribunal by agent: If any agent fails to comply with, or contravenes
any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term
which may extend up to one year or with fine for every day during which such default continues, which may cumulatively
extend up to ten per cent. of the estimated cost of plot, apartment or building for which the sale or purchase has been
facilitated.
7.4.3. Penal Provisions for Allottees

The Act Provides for two main types of penal provisions against Allottees, under Section 67 and 68, as follows:

(i) Penalty for failure to comply with orders of Authority by allottee: If any allottee fails to comply with, or contravenes any of
the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default
continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost.

(ii) Penalty for failure to comply with orders of Appellate Tribunal by allottee: If any allottee, fails to comply with, or
contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be punishable with
imprisonment for a term which may extend up to one year or with fine for every day during which such default continues,
which may cumulatively extend up to ten per cent. of the plot, apartment or building cost.
7.4.4. Offence by Companies

As per Section 69 of the Act, if an Offence under this Act has been committed by a company, every person who, at the
time, the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of
the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly.

If an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the
company, such director, manager,
secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
8. Due Diligence before Facilitating Sale of Property

One of the key objectives of MahaRERA

is to empower real estate agents and
homebuyers with information regarding
real estate projects to ensure informed
decision making. This chapter details some
of the important aspects of the project
which Real Estate Agent should scrutinize
before facilitating sale of any project. All
this information is available on the
MahaRERA website and can be viewed on
it.
8.1. Verify Promoter Identity and Project Details on MahaRERA Website

MahaRERA mandates that all marketing collaterals of project should carry MahaRERA Project Registration number.

Before facilitating any sale, agent should verify the MahaRERA project Registration number provided by the promoter against
the details on the MahaRERA web portal.
It should ascertain the identity of the promoter and ensure that all information being provided to the allottee are as per those
uploaded on the portal.

Promoter should ensure that all common areas and facilities promised by the promoter are as per details on MahaRERA portal.
8.2. Title of Property

Title is a legal term; it means the ownership right to property. Title is the evidence of the right of ownership or the
ground of right of ownership.

Clear title to a property is one of the most important factors to be considered before purchase. Homebuyer should undertake
due diligence, to ascertain the existence of the title with the promoter, the nature of the title and its marketability and the
ability of the promoter to convey clear and marketable title, free from encumbrance.

MahaRERA has prescribed a format for Legal Title Report which is prepared on basis of following documents:

• Description of the property.

• The documents of allotment of plot.
• 7 /12 extract or Property card issued by competent authority
• Search report for 30 years and so on

The legal title report on MahaRERA website provided by promoter details on whether the title clear, marketable and without
any encumbrances. In case there are encumbrances, the same are listed in the title report.

Therefore, an allottee must review the title report before entering into a transaction.
8.3. Building Approvals and Commencement Certificate

There are multiple approvals required for development of Real Estate Project. Some of the approvals include:

– ConversionandLand–UsePermissions: Withincreasingurbanisationandmergingofrevenuelands with urban conglomerates,

conversion of property for non-agricultural use assumes crucial significance. In such cases, developer needs to get approval
from concerned authority to convert agricultural land to non-agricultural (NA) purpose.

Secondly, the buyer must examine the Master Plan and satisfy that the property is developed in accordance with the zoning
plan - such as residential, commercial, industrial, public/semi- public, parks and open spaces, etc. Where actual use is different
from the notified zoning, obtaining orders from the Town Planning Authority permitting change of land use, is mandatory.

– Layout Approval: The promoter has to get approval oflayout plan from concerned authorities. The layout plan provides
general blueprint of land development including number of buildings, various facilitiess, open area, parks etc on the project
land.
8.3. Building Approvals and Commencement Certificate

– Intimation of Disapproval (IOD) is basically building permit approving the proposed building plan subject to some
conditions like obtaining a list of “no-objection certificates” (NOCs) from various departments and government authorities.
Final clearance to build (Commencement Certificate) will only be given once the promtoer obtains all NOCs and meets all
IOD conditions.

Major NOCs/IOD conditions are listed below:

a) Non-Agriculture (NA) permission

b) Tree Authority
c) Storm Water and Drain Department
d) Sewerage Department
e) Hydraulic Department
f) Environmental Department (concerned with debris management)
g) Consent to Establish & Operate
h) Ancient Monument Approval
i) Airports Authority of India
j) Traffic and Coordination Department
k) CFO (fire clearance)
l) Structural Plan Approval etc
8.3. Building Approvals and Commencement Certificate

– Commencement Certificate: Commencement Certificate in layman terms, is the permission to start construction. A
promoter cannot lay the foundation stone or start any construction without commencement certificate.

Further, MahaRERA registration is not provided without Commencement Certificate.

Commencement certificates may be obtained in stages including the Commencement Certificate up to a Plinth /Zero FSI / or
commencement certificate upto a particular floor level.
Homebuyer should be aware, if the commencement certificate for construction upto the floor, where the proposed apartment is
situated, is with the promoter or not.

MahaRERA as prescribed Declaration “Format -D” which the promoter is required to upload while Registering the project,
alongside the Commencement certificate.
Further, the promoter is required to update it as soon as further Commencement certificate / Approvals are obtained by him, at
every later stage

– Occupancy Certificate: After completion of construction, Occupancy Certificate is mandatory ensuring that the developer
has constructed the building as per approved plan.
An allottee should review all the approvals obtained by the promoter ( these are available on MahaRERA website), before
making informed choices.
8.4. Status of Tax Payments

Non-payment of property taxes constitute a charge on the property, affecting its marketability. So, the homebuyer must verify
that the promoter has not defaulted on payment of property taxes. Do ask for the receipts of all utility bills from the promoter.

8.5. Litigations against the Project

On the MahaRERA website, the promoter provides list of all litigations ( if any), against the project, the same should be
reviewed before making a decision to buy an apartment

8.6. Allotment Letter and Model Form of Agreement

The Allottee should also ensure that the allotment letter / Agreement of Sale are as per proforma of Allotment Letter and
Agreement of sale provided in the MahaRERA website.
8.7. MahaRERA Carpet Area

Prior to RERA, there was no industry wide standard definition for calculation of apartment area. Now, RERA
provides a standard formula to calculate carpet area.

It is now mandated the developers sell their apartments based upon the MahaRERA carpet area.
According to the Act, Carpet Area means net usable floor area of an apartment, excluding the area covered by the external
walls, area under services shaft, exclusive balcony or verandah area and exclusive open terrace area, but including the area
covered by internal partition walls of the apartment.

This standardisation of the carpet area definition ensures that homebuyers buyers are not misled. Pre- RERA the loading
factor was high; therefore, the saleable area was inflated. The effect of this is that the rate per square feet on the saleable area
is reduced. Using the above- mentioned standard for carpet area will ensure that there is clarity on the usable area. This also
helps in the analysis of cost per square feet. Comparison between the different projects also becomes easier.

Therefore, the allottees must ascertain the carpet area of the apartment under consideration.
9. Sales Process, Forms and Agreements

9.1. Allotment Letter

An allotment letter is a crucial

document during the purchase of
apartment. If an allottee is buying
an under-construction property,
then an allotment letter is
provided by the promoter to the
prospective allottee. It is issued
once the buyer pays upto 10% of
the property value to the
promoter.
9.1. Allotment Letter

MahaRERA has prescribed a model allotment letter comprising of following details:

• Details of the proposed apartment / plot

• Details of parking space allotted (if any)
• Amount of Payment received by Promoter
• Various Documents including sanctioned plans, stagewise schedule of completion and so on
• List of Encumbrances
• Proposed Date of Possession
• Terms for Cancellation of allotment
• Other terms and condition governing the allotment letter

The proforma of Allotment letter is uploaded by the developer during the project registration and can be viewed by the
Allottee.
9.1.1. Model Allotment Letter

The Model Allotment letter prescribed by authority is as follows:

 ANNEXURE ‘1’
MODEL FORM OF ALLOTMENT LETTER

Note:
No……………………… Date: ………………………..
i) For compliance of the provisions of
clause (g) of sub-section (2) of section 4
of the Real Estate (Regulation and
Development) Act, 2016 (the Act), the
proforma of the allotment letter to be
uploaded along with the application for
registration of the real estate project shall
be as per this model form of allotment
letter.

ii) It shall be mandatory to issue allotment

letter in this format whenever a sum not
more than 10% (ten per cent) of the cost of Sub: Your request for allotment of flat / commercial premises /plot in the project
the apartment, plot or building as the case
may be, is collected as deposit or advance. known as ………………, having MahaRERA Registration No………………
MODEL FORM OF ALLOTMENT LETTER

Sir/Madam,

1. Allotment of the said unit:

This has reference to your request referred at the above subject. In that regard, I/ we have the
pleasure to inform that you have been allotted a BHK flat/villa/bungalow/ commercial

premises bearing No. admeasuring RERA Carpet area sq. mtrs equivalent to
sq.ft. situated on floor in Building / Tower /Block /Wing
in the project known as , having MahaRERA Registration No. ,
hereinafter referred to as “the said unit”, being developed on land bearing C. S. No(s) /CTS No(s) /Final
Plot No(s) /Survey No(s) , Hissa No(s) /Gat No(s) /Khasra No(s) / Plot No(s) lying and being at
Village Taluka , Dist. admeasuring sq. mtrs. for a total consideration of Rs.
in figures (Rupees. in words only) exclusive of GST, stamp duty and registration charges.
OR
MODEL FORM OF ALLOTMENT LETTER

2. Allotment of the said unit:

This has reference to your request referred to at the above subject. In that regard, I/we have the pleasure to inform that you
have been allotted a plot bearing No. admeasuring sq.
mtrs. equivalent to sq. ft. in the project known as , having MahaRERA Registration No ,
hereinafter referred to as “the said unit” carved out from the land bearing C. S. No(s) /CTS No(s) /Final Plot
No(s) /Survey No(s) ,Hissa No(s) /Gat No(s) /Khasra No(s) / Plot No(s)
lying and
being at Village Taluka ,Dist. admeasuring sq. mtrs. fora total

consideration of Rs. in figures (Rupees. in words only) exclusive of GST,

stamp duty and registration charges.
MODEL FORM OF ALLOTMENT LETTER

2. Allotment of garage / covered parking space(s):

Further I/ we have the pleasure to inform you that you have been allotted along with the said unit, garage(s)
bearing No(s) admeasuring sq. mtrs equivalent to sq ft./covered car
parking space(s) at level basement /podium bearing No(s) admeasuring sq.
mtrs. equivalent to sq. ft./stilt parking bearing No(s) , admeasuring sq. mtrs
equivalent to sq. ft. / mechanical car parking unit bearing No(s) admeasuring
sq. mtrs. equivalent to sq. ft. on the terms and conditions as shall be enumerated
in the agreement for sale to be entered into between ourselves and yourselves.
OR
MODEL FORM OF ALLOTMENT LETTER

Allotment of open car parking:

Further I/We have the pleasure to inform you that you have been allotted an open
car parking bearing No…………..without consideration.

3. Receipt of part consideration:

I / we confirm to have received from you an amount of Rs. in figures (Rupees. in words
only), (this amount shall not be more than 10% of the cost of the said unit) being
% of the total consideration value of the said unit as booking amount /advance payment on
dd/mm/yyyy , through mode of payment .
OR
MODEL FORM OF ALLOTMENT LETTER

1. Receipt of part
consideration:

B. If you fail to make the balance

% of the booking
amount /advance payment within
the time period stipulated above
further action as stated in Clause 12
hereunder written shall be taken by
us as against you.
4. Disclosures of information:

I/We have made available to you the following information namely: -

i) The sanctioned plans, layout plans, along with specifications, approved by the competent authority are displayed at the
project site and has also been uploaded on MahaRERA website.

ii) The stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water,
sanitation and electricity is as stated in Annexure - A attached herewith and

iii) The website address of MahaRERA is

https://maharera.mahaonline.gov.in/#
5. Encumbrances:

I/ We hereby confirm that the said unit is free from all encumbrances and I/we hereby further confirm that no encumbrances
shall be created on the said unit.

OR
a)
b)

6. Further payments:

Further payments towards the consideration of the said unit as well as of the garage(s)/covered car parking space(s) shall be
made by you, in the manner and at the times as well as on the terms and conditions as more specifically enumerated / stated in
the agreement for sale to be entered into between ourselves and yourselves.
7. Possession:

The said unit along with the garage(s)/covered car parking spaces(s) shall be handed over to you on or before subject to the
payment of the consideration amount of the said unit as well as of the garage(s) /covered car parking space(s) in the manner
and at the times as well as per the terms and conditions as more specifically enumerated / stated in the agreement for sale to be
entered into between ourselves and yourselves.

8. Interest payment:

In case of delay in making any payments, you shall be liable to pay interest at the rate which shall be the State Bank of India
highest Marginal Cost of Lending Rate plus two percent.
 9. Cancellation of allotment:
i. In case you desire to cancel the booking an amount mentioned in the Table hereunder written* would be deducted and the balance
amount due and payable shall be refunded to you without interest within 45 days from the date of receipt of your letter requesting to
cancel the said booking.

ii. In the event the amount due and payable referred in Clause 9 i) above is not refunded within 45 days from the date of receipt of your
letter requesting to cancel the said booking, you shall be entitled to receive the balance amount with interest calculated at the rate which
shall be the State Bank of India highest Marginal Cost of Lending Rate plus two percent.
10. Other payments:

You shall make the payment of GST, stamp duty and registration charges, as applicable and such other payments as more
specifically mentioned in the agreement for sale, the proforma whereof is enclosed herewith in terms of Clause 11 hereunder
written.

11. Proforma of the agreement for sale and binding effect:

The proforma of the agreement for sale to be entered into between ourselves and yourselves is enclosed herewith for your
ready reference. Forwarding the proforma of the agreement for sale does not create a binding obligation on the part of
ourselves and yourselves until compliance by yourselves of the mandate as stated in Clause 12.
12. Execution and registration of the agreement for sale:

i) You shall execute the agreement for sale and appear for registration of the same before the concerned Sub-Registrar within a
period of 2 months from the date of issuance of this letter or within such period as may be communicated to you.* The said
period of 2 months can be further extended on our mutual understanding.

* In the event the booking amount is collected in stages and if the allottee fails to pay the subsequent stage installment, the
promoter shall serve upon the allottee a notice calling upon the allottee to pay the subsequent stage installment within 15
(fifteen) days which if not complied, the promoter shall be entitled to cancel this allotment letter. On cancellation of the
allotment letter the promoter shall be entitled to forfeit the amount paid by the allottee or such amount as mentioned in the
Table enumerated in Clause 9 whichever is less. In no event the amount to be forfeited shall exceed the amount mentioned in
the above referred Table. Except for the above all the terms and conditions as enumerated in this allotment letter shall be
applicable even for cases where booking amount is collected in stages.
12. Execution and registration of the agreement for sale:

ii) If you fail to execute the agreement for sale and appear for registration of the same before the concerned Sub-Registrar
within the stipulated period 2 months from the date of issuance of this letter or within such period as may be communicated to
you, I/we shall be entitled to serve upon you a notice calling upon you to execute the agreement for sale and appear for
registration of the same within 15 (Fifteen) days, which if not complied, I/we shall be entitled to cancel this allotment letter
and further I /we shall be entitled to forfeit an amount not exceeding 2% of the cost of the said unit and the balance amount if
any due and payable shall be refunded without interest within 45 days from the date of expiry of the notice period.

iii) In the event the balance amount due and payable referred in Clause 12 ii) above is not refunded within 45 days from the
date of expiry of the notice period, you shall be entitled to receive the balance amount with interest calculated at the rate
which shall be the State Bank of India highest Marginal Cost of Lending Rate plus two percent.
13. Validity of allotment letter:

This allotment letter shall not be construed to limit your rights and interest upon execution and registration of the agreement
for sale between ourselves and yourselves. Cancellation of allotment of the said unit thereafter, shall be covered by the terms
and conditions of the said registered document.
14. Headings:

Headings are inserted for convenience only and shall not

affect the construction of the various Clauses of this
allotment letter.

CONFIRMATION & ACKNOWLEDGEMENT

I/We have read and understood the contents of this allotment

letter and the Annexure. I/We hereby agree and accept the
terms and conditions as stipulated in this allotment letter.
 Annexure - A
Stage wise time schedule of completion of the Project

Sr. No. Stages Date of Completion

1. Excavation

2. Basements (if any)

3. Podiums (if any)

4. Plinth

5. Stilt (if any)

6. Slabs of super structure

7. Internal walls, internal plaster, completion of floorings, doors and

windows
8. Sanitary electrical and water supply fittings within the said units

9. Staircase, lifts wells and lobbies at each floor level overhead and
underground water tanks
10. External plumbing and external plaster, elevation, completion of terraces
with waterproofing.
 Annexure - A
11. Installation of lifts, water pumps, firefighting fittings and equipment, electrical fittings, mechanical
equipment, finishing to entrance lobby/s, plinth protection, paving of areas appurtenant to building
/ wing, compound wall and all other requirements as may be required to complete project as per
specifications in agreement of sale, any other activities.
12. Internal roads & footpaths, lighting

13. Water supply

14. Sewerage (chamber, lines, septic tank, STP)

15. Storm water drains

16. Treatment and disposal of sewage and sullage water

17. Solid waste management & disposal

18. Water conservation / rain water harvesting

19. Electrical meter room, sub-station, receiving station.

20. Others

* Promoter (s) /Authorized Signatory

Model Form of Agreement

The ‘Agreement For Sale’ is a contract to transfer property from the promoter to the allottee. It is a legal document that
outlines the terms of a real estate transaction,
This is a very important document for property transactions and that is the reason why allottee needs to understand all the
terms and conditions included in it and it should be obeyed throughout the sale process.

• It is a contractual property agreement between the promoter to sell a particular property on

particular terms and an agreed-upon price to the allottee.

• Registered under the Indian Contract Act, 1872, the sale contract is legally binding on both the
parties.
Model Form of Agreement

• It is a roadmap on how property transaction will be completed in the future.

• To maintain the legal sanctity of the document, both parties need to mutually agree on what clauses
to be added to the contract.

• These clauses can be related to penalty for not honouring the contract, terms and conditions
pertaining to who will pay the outstanding dues, right to call off the deal, etc.

• This agreement needs to clearly state the names of the promoter and the allottee, the size of the
property, its direction, carpet area, and other necessary information.

• This document is dated and is signed by both the parties in the presence of two witnesses.
Model Form of Agreement

S.No Payment Schedule Construction Milestone

1. Amount not exceeding 10% of the total consideration Before Execution of Agreement for Sale

2. Amount not exceeding 30% of the total consideration After Execution of Agreement for Sale
3. Amount not exceeding 45% of the total consideration On completion of the Plinth of the building or wing in which
the said Apartment is located
4. Amount not exceeding 70% of the total consideration On completion of the walls, internal plaster, floorings, doors
and windows of the said Apartment.
5. Amount not exceeding 80% of the total consideration On completion of the Sanitary fittings, staircases, lift wells,
lobbies upto the floor level of the said Apartment
6. Amount not exceeding 85% of the total consideration On completion of the external plumbing and external plaster,
elevation, terraces with waterproofing, of the building or wing
in which the said Apartment is located
7. Amount not exceeding 95% of the total consideration On completion of the lifts, water pumps, electrical fittings,
electro, mechanical and environment requirements, entrance
lobby/s, plinth protection, paving of areas appertain and all
other requirements as maybe prescribed in the Agreement of
sale of the building or wing in which the said Apartment is
located.
8. Balance Amount At the time of handing over of the possession of the Apartment
to the Allottee on or after receipt of occupancy certificate or
completion certificate.
Model Form of Agreement

i. Terms for Termination of Agreement by Allottee or Promoter

ii. Procedure for taking possession of the apartment

iii. Rights and Duties of Promoter and allottees

The Model Form of Agreement also states that “In case the transaction being executed by this agreement between the
promoter and the allottee is facilitated by a Registered Real Estate Agent, all amounts (including taxes) agreed as payable
remuneration / fees/ charges for services/ commission/ brokerage to the said Registered Real Estate Agent, shall be paid by the
Promoter/ allottee/ both, as the case may be, in accordance with the agreed terms of payment”.

The Real Estate Agents should ensure the above clause is also part of Model Form of Agreement. Authority has also
prescribed Model Agreement for Sale
Applicability of TDS to purchase of apartment and brokerage payment.

TDS (Tax Deducted at Source) shall be deducted whenever any property is sold/ purchased. The buyer needs to deduct the
amount (called TDS) and pay the balance to the seller. The amount to be deducted depends on the residential status of the
seller.

It’s pretty interesting to know that with the laws put forth by the government right now, the power to deduct the TDS rate on
property purchase is with the buyer and not the seller. If the buyer does not discharge this duty, they can be penalized.
Properties that are covered

According to 194IA of the Income Tax Act, “Any person, being a transferee, responsible for paying a resident transfer any
sum by way of consideration, for the transfer of any immovable property (other than agricultural land), shall, at the time of
credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by the issue of a cheque or
draft or by any other mode, whichever is earlier, deduct an amount equal to 1% of such sum as income-tax thereon.”

This section states that the buyer needs to deduct 1% on the sale if the TDS on purchase property is above 50 lakhs. The
properties covered in this section include residential property, commercial property and land. But this does not include
agricultural land.

Note that the TDS on the purchase of property for NRIs is different because the government deducts capital gains and TDS for
the NRIs.
When to Deduct TDS and How to Pay it?

There are two times where the buyer can pay the TDS; one is when he/she is executing the conveyance deed or if he/she is
paying an advance before the execution of the conveyance deed. The buyer needs to pay the TDS to the credit of the central
government, this needs to be done within 30 days from the end of the month, wherein the tax is also deducted. When filling
the forms for the TDS payment on property purchase and the furnishing for other parts, you will need to fill out form
no.26QB, a form- cum-challan. If there is more than one buyer or seller, you need to fill out no.26QB with all the details
necessary.
Details Required for the Payment of the TDS

Every person responsible for deducting TDS is needed to obtain a Tax deduction account number (TAN). But for TDS on a
property purchase of immovable property, the buyer does not require a TAN. When filling the form, you will need to submit
the names, addresses, PAN, phone number and email id of both the buyer and the seller. You will need to submit the complete
address of the property, the date of the agreement, the date of the payment, and the total value of consideration. You can make
the payment online via net banking or physically at the bank.
 Different types of TDS deduction based on the property
Lower Deduction of TDS on Purchase of Property

According to some provisions, the seller can approach the income tax officer for a certificate so that the buyer can deduct tax
at a lower or nill rate. If not this, the seller can also furnish a declaration for nil TDS. There is no TDS on property purchase
for immovable property; the buyer will need to deduct tax for a TDS on property purchase above 50 lakhs.

According to the Union Budget of 2021, a new section, i.e. 194Q , was introduced to levy TDS of 0.1% on a property
purchase of more than 50 lakhs in a year. According to this, the responsibility of the deduction will lie only with the person
whose turnover is more than 10 crores.
With this, the TDS payment on the property purchase needs to be deducted by the buyer on the entire amount.
TDS on Purchase of Immovable Property

This applies to everyone who is buying property from a resident Indian. This applies to the TDS on flat purchase, TDS on land
purchase and buildings and land along with facilities and flats. The only exception here is agricultural land. The seller has
been an Indian resident. The buyer must give the seller a TDS certificate 15 days before the due date to deposit the tax sheet.

TDS on Property Purchase from NRI

When an NRI sells a property, the buyer can deduct the TDS on property purchase from NRI at 20%. If the property was sold
two years from the date of the purchase, the TDS on purchase of property could be increased to 30%. Long term capital gains
are taxed at 20%, and short-term gains are taxed at the applicable income tax slab rates for NRI based on the total income tax
for NRIs in India.
Key Things to Remember about TDS

• The buyer must deduct and pay the government for TDS on property purchase above 50 lakhs.

• The power and responsibility of deducting the TDS are with the buyer, not the seller.

• If the buyer does not discharge this duty, they can be penalised by the authorities.

• The buyer needs to fill form no.26QB to credit the TDS.

• If there are more than one buyer and seller, multiple forms need to be filled by each party.
Basic Knowledge of Home and Mortgage Loan

In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals,
organizations etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is
repaid as well as to repay the principal amount borrowed.

The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of
money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the
subject asset(s) for a period of time, between the lender and the borrower.

The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and
restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants.
Although this article focuses on monetary loans, in practice, any material object might be lent.

Acting as a provider of loans is one of the main activities of financial institutions such as banks and credit card companies.
For other institutions, issuing debt contracts such as bonds is a typical source of funding.

In real estate the cheapest mode of financing happens through home loan.
Home Loans

When one wishes to purchase a home, applying for a home loan can help to a great extent in financing the home. A loan
provides financial support and helps allottee buy a house. Home loans generally come with longer tenures (20 years to 30
years). The rates offered by some of the top banks in India with their home loans start at 6.30%. Allottee’s credit score is
checked before the loan request is approved by the lender. If Allottee has a good credit score, there is a fair chance that he will
be able to enjoy lower rates of interest.

Home loans are primarily taken for buying new homes. However, these loans can also be used for home renovations, home
extensions, purchasing land property, under-construction houses, etc.

Loans are offered by banks and non-banking finance companies. The lender provides principal loan amount and charges
interest on it. One can repay the loan in affordable monthly instalments. The property serves as collateral and it stays in
possession of the lender until the loan is repaid in full. As such, the lender has a legal claim over the property for the tenure of
the loan, and if the borrower defaults in paying off the loan, the lender has the right to seize it and auction it off.
Types of interest rates on loans

One can pay off its loan, either by opting for a fixed interest rate or a floating interest rate. Let’s understand the meaning of the
two.

• Fixed interest rate: As the name suggests, a fixed interest rate remains the same for the entire loan tenure. Allottee may be
allowed to opt for a fixed interest rate if he opts for shorter tenures. In case allottee is looking for a longer tenure loan, then he
may not be able to avail a fixed interest rate.

• Floating interest rate: The interest rates are adjusted according to the prevailing market rates. One cannot predict the rate of
interest but can get an idea of the current interest rate on the lender’s website. This is a rate of interest that can change
periodically and it is directly linked to the Marginal Cost of Funds based Lending Rate or MCLR.
Features of a Home loan

Now that we know what is meant by a Home loan, and the interest rates associated with them, let’s take a look at its important
features.

• Not all types of properties, real estate or otherwise, are accepted by lenders.

• The property should possess marketable value and be a freehold property i.e. one which gives the property owner the full
legal right to transfer the ownership of the property.

• Since the lender provides the loan amount by taking your property as collateral, a home loan is regarded as a secured loan.

• Home loans are available for longer tenures lasting up to 30 years and can be repaid in affordable monthly payments or
EMIs.

• A Home loan can be customised to suit your requirements

Real Estate Calculations

This chapter provides overview of various Real Estate Calculations that agent must be aware as they facilitate real estate
transaction.

Taxation/Government Fees and Levies

While registration and stamp duty are the familiar taxes, there are additional ones too. Let’s understand more about all the tax
components involved in the home buying process.
Goods and Services Tax (GST)

For Under-construction properties

Under the new unified tax regime implemented by the Central Government, under-construction units were initially taxed at 18
percent. The government has also added a provision, allowing deduction of land value equivalent to one-third of the total
amount charged by a developer, thus, resulting in the effective GST rate on such units at 12 percent. However, the government
revisited the tax slab prevalent on real estate and slashed it to five percent for under-construction units and one percent for
affordable homes in February 2019 without input tax credit.

It should be noted that stamp duty and registration charges are imposed in addition to GST on purchase of under-construction
units, as these are State levies.
For Ready-to-move properties

All ready-to-move properties across the country are outside GST ambit.

Tax Deduction at Source (TDS)

The government amended section 194-IA of Income Tax Act to include all residential society-based charges such as club
membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar
nature, which are incidental to transfer of the immovable property, for levy of TDS. Since September 1, 2019, the TDS is
levied at one percent, if the value of the property exceeds Rs 50 lakh.

TDS was introduced under a new section, 194 (A) included in the Income Tax Act, 1961 by the Finance Act, 2013. This tax
deducts some percentage of amounts during a sale transaction by an individual. As per this section, any individual buying a
property has to pay the TDS to the seller by way of consideration for transfer of an immovable property, excluding agricultural
land. The TDS must be submitted in the name of the seller of the property.
Registration charge

Registration process includes recording the Sale documents with a registering officer. Registering the documents relating to
the transfer, sale or lease of a property is mandatory by law under Section 17 of the Indian Registration Act, 1908. According
to the law, if the property documents are not duly registered, the owners will not be able to contend any case in court. The
document is the final agreement which is signed between the two parties, subsequent to which the buyer will become the
rightful owner of the property. This document protects the buyer in incidence of alleged transactions and fraudulence.

The property registration charges in Maharashtra are 1% of the total cost for the properties priced below Rs 30 lakh and
capped at Rs 30,000 for properties priced above Rs 30 lakh.
Stamp duty

The Maharashtra Stamp Act was passed in 1958 and applies to all the instruments mentioned in Schedule 1, on which the
stamp duty Maharashtra is payable to the state. It is also known as the Bombay Stamp Act 1958. The Act also details the
amount of stamp duty Maharashtra to be paid to the government. The buyer has to pay this amount at a designated bank or
collection center before the registration of the property and any delay can attract a penalty. This charge is calculated on the
basis of the Ready Reckoner rates issued by the government and unless paid, the property would not receive a legal status.
This tax is paid on every transaction including exchange of documents and execution of instruments.

According to the Maharashtra Stamp Act, all instruments chargeable with stamp duty in Mumbai and executed in
Maharashtra, should be stamped before or at the time of execution, or on the next working day following the date of
execution.

The stamp duty in Maharashtra varies between 5% and 7%, depending on various factors. Women buyers are provided a
concession of 1% over the prevailing stamp duty in Maharashtra on property transactions, if the transfer of house property or
registration of sale deed, is done in the name of women.
External Development
Charges

Cost Sheet Sample and

Component details

A cost sheet is a statement which

represents the various costs incurred
at different stages of business
operations, in a tabular format.
 Sample 2

These are the different cost sheets sample to understand how the
payments are done and what all different components are involved wh
buying a property
THANK YOU!