The state government is in the process of finalizing rules for implementation of the Real Estate (Regulatory & Development) Act, 2016. Once these rules are in place, the government will appoint a three-member authority to ensure registration of developers, look into complaints and regulate the real estate industry. A tribunal will also be set up where orders of the authority can be challenged and an adjudicating would be appointed to ensure adjudication of fines.
Officials said while a Supreme Court order based on the Maharashtra Ownership of Flats Act today does not allow a developer to sell a parking slot, under the RERA Act, it is identified as a unit and can be sold. A developer will not be able to advertise or sell flats unless the project is registered with the authority. Even ongoing projects that have not been issued a completion certificate will need to register with RERA within 90 days of the Act coming into force.
For a project to be registered, the developer will be required to disclose land details, sanctioned layout plan, sanctioned building plans, commencement certificate and also total number of buildings that will be finally constructed. The developer will also need to register details of real estate agents, including their registration numbers, who will market the flats. Estate agents have to independently register with the authority.
“The developer can sell flats only up to the floor that has a commencement certificate. Even if he plans to build a 100-storey building but has a CC only for the first ten floors, he can sell only up to the tenth floor,” said officials.
The developer will need to declare the time frame within which the project will be completed. Under the proposed rules, the authority can allow an extension of one year provided the developer gives an explanation for the delay. Beyond one year, the developer will be fined for every single day of delay. The maximum fine that is proposed is 10% of the project cost, said officials.
The authority will enable buyers to make an informed choice. They will only need to download information from RERA before purchasing a flat. Details of the entire layout with open spaces, parking lots and amenities will be available on the website. The developer will be required to update sale figures every three months. So, buyers will know exactly how many flats have been sold.
The authority will be in place by April-end and the website in three months, said officials.
Credits ET Realty