In a notable effort to safeguard homebuyers and enhance transparency within the real estate industry, the Maharashtra Real Estate Regulatory Authority (“Maha RERA”) vide Order No.57/2024 dated 30 July 2024 (“Order”) has mandated that future housing project sale agreements should include detailed information about facilities and amenities. The Order follows a draft proposal released in April 2024, which invited suggestions and opinions from the public and stakeholders. After reviewing the feedback and consulting with experts, Maha RERA incorporated additional items into the final Order to enhance transparency and accountability in the sector. This regulation seeks to remove ambiguities regarding the availability of promised amenities and ensure that developers fulfil their obligations.
Mandatory Inclusions for Registration of Projects
Under MahaRERA's newly issued Order, developers are now required to incorporate comprehensive information about the facilities and amenities in a housing project within Annexure-I of the sale agreement. This annexure must detail:
- The type and extent of amenities, including swimming pools, sport courts, gyms and other recreational facilities;
- The anticipated dates when these amenities will be accessible to residents;
- The phased availability of these amenities in projects developed in stages;
- The date when these amenities will be transferred to the housing project association or residents' group.
This initiative ensures that homebuyers are thoroughly informed about the availability and transfer timelines of amenities, thereby safeguarding their interests and promoting greater accountability among developers.
Enforcement and Due Compliance:
To ensure compliance with the new regulations, MahaRERA has established several enforcement measures:
- Non-negotiable Provisions and its Compliance: MahaRERA has designated this provision of mandatory disclosures regarding comprehensive details about the said housing projects as non-negotiable, highlighting its significance for consumer protection. The inclusion of these details is now a mandatory component of the sales contract, alongside other essential elements such as carpet area, liability period, and parking provisions. Additionally, developers are obligated to provide a comprehensive list of amenities in Schedule II of the Model Sale Agreement.
- Penalties for Non-compliance: Developers who fail to include the required details in the sale agreements or do not adhere to the stipulated timelines for amenity availability and transfer may face penalties. These penalties could include fines and other legal actions as deemed appropriate by MahaRERA.
- Inspection and Audit: MahaRERA will conduct regular inspections and audits of housing projects to verify that developers are meeting the required standards and timelines for amenities.
- Legal Recourse for Buyers: Homebuyers will have the right to take legal action against developers who do not fulfil their commitments regarding amenities. MahaRERA will provide support and guidance to buyers in pursuing their claims.
- Public Disclosure: Information regarding the status of amenities and compliance with the new regulations will be made publicly available, enhancing transparency and allowing buyers to make informed decisions.
These measures are designed to enforce the new rules effectively, ensuring that developers are accountable and homebuyers are protected.
Approval for Changes in Amenities:
To prevent arbitrary modifications to the promised amenities, the Order requires that any significant revisions, shifts, or corrections must obtain MahaRERA's approval. Additionally, changes to the location and number of amenities must receive the consent of at least twothirds of the residents of the residents of the society or allottees or a federation of organisations, as the case may be. This clause ensures that developers cannot unilaterally alter the project's offerings, thereby safeguarding the interests of all stakeholders.
MHCO Comment:
Developers are now required to provide detailed disclosures about the anticipated date of the Occupancy Certificate (OC), the project's ownership status, and any concessions granted by local planning authorities. Annexure-One of the said sale agreement will outline the proposed facilities, their availability dates, and their eventual transfer to the relevant housing project organization.
Additionally, to further ensure transparency, developers must disclose specifications related to recreational grounds, playing fields, and elevator systems, including capacity, speed, and intended use. This landmark regulation by MahaRERA represents a significant step towards protecting consumer rights and fostering trust in the real estate sector. By ensuring that all promised amenities are clearly documented and delivered, MahaRERA aims to promote a more transparent and responsible development environment.
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