MahaRERA gets cracking, issues first notice
The Maharashtra Real Estate Regulatory Authority (RERA) has issued its first showcause notice to a property broker for violating provisions of the Real Estate (Regulation & Development) Act 2016 and the state rules formed under the Act.
The property broker Sai Estate Consultants has been issued the notice for advertising about multiple residential projects that have not been registered under the Maharashtra Real Estate Regulatory Authority (MahaRERA).The broker, however, has already registered itself with the authority. The Act requires brokers to sell or facilitate such activity in registered projects only.
“Even though ongoing projects have a 90-day window to advertise, sell and also get registered with the authority, if any broker has got registered during this period, he as per the rules can facilitate the sale only in such projects that are registered,“ Gautam Chatterjee, chairperson, MahaRERA, said.. “The broker has violated Sections 9 and 10 of the Act and Rule 14 of the registration regulation.“
The broker confirmed receiving the notice, following which it has already communicated its explanation to the authority.
A total of 22 real estate projects and over 1,100 property brokers have registered under the newly implemented Real Estate Regulatory Authority (RERA) in Maha rashtra. The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1, this year. Maharashtra was one of the first to notify its rules under the Act and establish MahaRERA.
While around 100 project proponents have filled in the details of their projects for registration, they have not completed the last step of payment and submission so far. The regulator expects the process of registration to gain momentum and see a substantial number of projects getting registered by June 15.
“They have no option but to complete the process of registration. The issue is not about confusion, they are still waiting to see what would be the opportune time to get registered. As soon as the project gets registered, they will have to start maintaining a separate account for 70% of money received from the said project,“ Chatterjee said.
The state housing body, Maharashtra Housing and Area Development Authority (MHADA), itself is expected to get around 20 of its projects registered with MahaRERA.
Realty developers are not allowed to launch any Real estate project without registering it with the authority.
Apart from this, ongoing projects, or under-construction projects, are expected to be registered with the authority within three months up to July 2017 to comply with the regulations. Real estate brokerages and agents are also not allowed to practise until they get registered with the authority.
According to RERA, which aims to improve transparency in the real estate sector and protect home-buyers' interest, builders are expected to disclose projectrelated information, including project plan, layout, and government approvals-related information to customers.
Any major change in the project will be done only after receiving the consent of two-third home buyers in that project. To avoid diversion of funds, RERA mandates developers to maintain 70% of the funds collected from buyers in a separate bank account in case of new projects.
The property broker Sai Estate Consultants has been issued the notice for advertising about multiple residential projects that have not been registered under the Maharashtra Real Estate Regulatory Authority (MahaRERA).The broker, however, has already registered itself with the authority. The Act requires brokers to sell or facilitate such activity in registered projects only.
“Even though ongoing projects have a 90-day window to advertise, sell and also get registered with the authority, if any broker has got registered during this period, he as per the rules can facilitate the sale only in such projects that are registered,“ Gautam Chatterjee, chairperson, MahaRERA, said.. “The broker has violated Sections 9 and 10 of the Act and Rule 14 of the registration regulation.“
The broker confirmed receiving the notice, following which it has already communicated its explanation to the authority.
A total of 22 real estate projects and over 1,100 property brokers have registered under the newly implemented Real Estate Regulatory Authority (RERA) in Maha rashtra. The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1, this year. Maharashtra was one of the first to notify its rules under the Act and establish MahaRERA.
While around 100 project proponents have filled in the details of their projects for registration, they have not completed the last step of payment and submission so far. The regulator expects the process of registration to gain momentum and see a substantial number of projects getting registered by June 15.
“They have no option but to complete the process of registration. The issue is not about confusion, they are still waiting to see what would be the opportune time to get registered. As soon as the project gets registered, they will have to start maintaining a separate account for 70% of money received from the said project,“ Chatterjee said.
The state housing body, Maharashtra Housing and Area Development Authority (MHADA), itself is expected to get around 20 of its projects registered with MahaRERA.
Realty developers are not allowed to launch any Real estate project without registering it with the authority.
Apart from this, ongoing projects, or under-construction projects, are expected to be registered with the authority within three months up to July 2017 to comply with the regulations. Real estate brokerages and agents are also not allowed to practise until they get registered with the authority.
According to RERA, which aims to improve transparency in the real estate sector and protect home-buyers' interest, builders are expected to disclose projectrelated information, including project plan, layout, and government approvals-related information to customers.
Any major change in the project will be done only after receiving the consent of two-third home buyers in that project. To avoid diversion of funds, RERA mandates developers to maintain 70% of the funds collected from buyers in a separate bank account in case of new projects.
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