In a significant move towards protecting homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced stringent new regulations that require property developers to provide detailed and transparent information about the amenities and facilities associated with a property. Effective from July 30, 2024, these measures aim to address the recurring issue of developers not delivering on their promises, thereby safeguarding the interests of buyers.

Why This Order Was Necessary

MahaRERA’s decision stems from increasing complaints about developers failing to specify the amenities and facilities included in their projects. Many promoters were either omitting this crucial information from the Agreement for Sale or providing vague details without any mention of completion timelines. This lack of transparency left homebuyers in the dark, often leading to prolonged delays in the delivery of promised amenities.

Rishiraj Bhatt, Partner at Cyril Amarchand Mangaldas, explains the significance of the order: “This order by MahaRERA addresses homebuyers’ concerns regarding the timelines for completion and handover of amenities and common areas. There have been instances where amenities were not completed or handed over years after apartments were delivered. The new mandate requires developers to obtain the written consent of at least two-thirds of the homebuyers for any major revisions or changes to the promised amenities.”

Key Provisions of the MahaRERA Order

The new regulations are comprehensive and include several mandatory disclosures that developers must now incorporate into the Agreement for Sale:

1. Detailed Listing of Amenities: Developers are required to list all amenities and facilities to be provided, such as swimming pools, gyms, sports courts, and common areas. This list must also include the size and location of these amenities, along with the proposed handover date.
2. Lift Specifications: Developers must specify details about the lifts provided, including their type (e.g., passenger, stretcher, service, fire evacuation), capacity (in terms of passengers), and speed (measured in meters per second).
3. Compliance with Local Planning Rules: The agreement must outline how the project complies with local planning rules, including the Floor Space Index (FSI) and ‘free of FSI’ areas.
4. Annexure and Architect Certificate: The facilities and amenities must be detailed in Annexure ‘1’ of the Agreement for Sale, which should correspond to the registration Form-A under ‘Common Areas, Facilities, and Amenities,’ and in Table B of Form 1 – Architect Certificate.
5. Non-Negotiable Clauses: MahaRERA has emphasized that these clauses must be included exactly as stated, without any changes. If a developer leaves out or alters these details in the agreement, they will face strict penalties according to MahaRERA’s rules 38/2022.

Impact on Homebuyers and Developers

The implications of this order are far-reaching. By mandating a clear and detailed disclosure of amenities and their delivery timelines, MahaRERA is ensuring that developers are held accountable to their promises. This added transparency not only protects homebuyers but also builds trust in the real estate market.

Moving Forward: What Homebuyers Need to Know

With the implementation of this order, homebuyers now have a powerful tool to ensure that the property they are investing in meets all the promised specifications. They can demand transparency and accountability from developers, knowing that MahaRERA is committed to enforcing these new regulations.

For any major changes or corrections to the amenities, developers must now submit a correction application and obtain the consent of a significant majority of homebuyers. This ensures that buyers have a say in any alterations that could impact the value or usability of their property.