Table of Contents
Maharashtra Real Estate Regulatory Authority (MahaRERA) was in the news recently for issuing an order that is expected to ensure timely payment of brokerage to real estate agents and reduce disputes over commission promised by developers for property transactions enabled by them.
The Authority has issued an order that mandates the inclusion of a provision in the agreement of sale where the property transaction facilitated by a registered agent must mention the commission, brokerage and the charges that the promoter or the allottee has promised to pay.
In the last one week , MahaRERA has issued at least five regulatory orders to safeguard the interests of homebuyers, landlords and real estate agents in Maharashtra. These pertain to the brokerage amount payable by all the parties in the agreement for sale to the real estate agent, two clarifications regarding projects constructed on plots up to 500 sq mtrs and bank accounts maintained by landlords.
1. MahaRERA order makes it mandatory to mention brokerage amount to be paid to real estate agents in the agreement for sale
According to the order issued by MahaRERA on October 22, the agreement for sale executed between the developer and purchaser that is facilitated by the registered real estate agent, should mention the amount (including tax) to be paid as fees, commission, brokerage, to the agent by the developer, buyer or both as the case may be.
This order by MahaRERA will enable agents to receive their fees and commission on time and reduce disputes that arise on account of non-payment of brokerages, say real estate agents.
Also Read: Mumbai real estate pros miffed over withheld brokerage fees, boycott imminent
2. RERA registration not required for plots measuring 500 sq m
Another order issued by MahaRERA on October 22 has clarified that where the proposed construction is on land equal to or less than 500 sq m RERA registration irrespective of the number of apartments that are to be built on it as per the permissions issued by the competent authority may not be required.
Legal experts say that by exempting projects less than 500 sq m from RERA registration, these buyers may have fewer remedies available especially with regard to completion timelines.
3. MahaRERA circular provides clarity on what denotes receipt of commencement and completion certificates for plotted development projects
In a circular issued on October 22, MahaRERA has defined what constitutes a commencement certificate (CC) and a completion certificate for plotted development projects under the Unified Development Control and Promotion Regulations (UDCPR). This is expected to help those wanting to invest in plotted development projects. The authority has said that final approval accorded to the land subdivision layout in form D-3 of Unified Development Control and Promotion Regulations for Maharashtra State (UDCPR) or the approval of similar nature with non-agricultural permission shall be considered as commencement certificate for plotted development project.
In case of completion certificate, the certificate issued by the competent authority mentioning the commencement date and completion date with the conditions laid along with Form 4 of MahaRERA duly filled and signed is to be considered as completion certificate.
Also Read: Real estate sector is full of ‘horror storiesโ, says former MahaRERA chief Ajoy Mehta
4. Landlords do not need to open three bank accounts
The MahaRERA had earlier said that starting July 1, real estate developers will not be able to deposit the amounts received from homebuyers in different bank accounts. It had made it mandatory for them to maintain three different bank accounts for every project in a single bank to ensure financial discipline and timely completion of projects. However, considering even the landlords are considered to be promoters (developers) by the MahaRERA, there was doubt whether landlords too would need to maintain three different bank accounts.
Owing to this, MahaRERA said on September 4 that if the landlords are not promoters (developer) it will not be compulsory for them to open three different bank accounts.
5. Parking details in agreement and allotment letter
MahaRERA had earlier also asked real estate developers to mandatorily include details of parking space allotted or sold to homebuyers in the sale agreement and issue an allotment letter to prevent any ambiguity and future disputes. This direction was formally notified by the authority on September 3.
Also Read: Mumbai real estate: This is how MahaRERA plans to fix leakage issues in apartments
The regulator passed the order after it received several complaints from homebuyers such as building beams obstructing parking of vehicles, inability to park in the allotted slot, inadequate maneuvering space. Consequently, the regulator decided to make it mandatory for developers to include all details such as size, height, width related to parking in annexures to the allotment letter and sale agreement.
