Homebuyers empowered by MahaRERA against builders' cheating: Sale agreement to include all these mandatory details
Aug 1, 2024
Synopsis
MahaRERA: Now a promoter can't cheat you with false promises of various facilities and amenities like lifts, gym, etc. As per Subham Chatterjee, ALMT legal, "The homebuyers, especially those who had booked under construction flats, would feel deprived while receiving possession of the project without the amenities as promised at the time of purchase. This issue has been resolved to a large extent in view of this MahaRERA order."
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has now made it mandatory for property developers to provide a more transparent flow of information regarding the flat being sold. It is now (effective from July 30, 2024) mandatory for property developers to disclose the amenities and facilities proposed to be provided in the property and a proposed date of handover for such amenities and facilities, when the buyer and seller sign an Agreement for Sale.
What were some promoters doing which prompted such an order by MahaRERA
This order by MahaRERA comes against the backdrop of certain property developers not mentioning the facilities and amenities provided by them.
"It is noticed by MahaRERA, that promoters in the proforma of the agreement for sale… as well as in the agreement for sale to be executed with the allottees do not mention the facilities and amenities provided either in the building and/ or in the common areas and/ or in the layout as the case may be, and if mentioned the dates when the same would be made available for the use of the allottees, their family members and residents are not disclosed," said MahaRERA in its order.
"This MahaRERA Order would to a great extent address home buyers concerns with respect to the timelines for completion and handover of the amenities/facilities and the common areas by the promoter in a real estate project. There have been instances where the amenities/facilities and/or common areas were not completed and/or handed over by the promoters for several years even after delivering apartments to the home buyers. To make any major revisions, changes, shifting or corrections in the amenities/facilities or common areas would now require the prior written consent of at least two-third of the homebuyers in the project," says Rishiraj Bhatt, Partner, Cyril Amarchand Mangaldas.
What did MahaRERA order promoters to do
According to the MahaRERA order dated July 30, 2024, the following details need to be included in the agreement for sale:
Facilities/Amenities details and compliance with local planning rules: The facilities/ amenities provided/ to be provided either in the building and/ or provided in the common areas and/or in the layout as the case may be, such as (list not exhaustive) swimming pool, badminton court, tennis court, theatre, gymnasium, table, tennis court, squash court, etc;
"For the facilities/ amenities which are provided/ to be provided by utilising 'free of FSI' area and FSI of the project available (as the case maybe) under local planning rules and regulations shall be provided," said MahaRERA in its order.
Mention of Facilities/Amenities Size and Location: The size and location of the facilities/ amenities in form of open spaces (RG/PG, etc) to be provided within the plot and/ or in the layout and proposed date on which such open spaces etc shall be handed over to the common organisation of Allottee(s) or Federation of common organisations as the case may be.
Details of lift: Number of lifts to be provided with details as to
a) Type of life: passenger/stretcher/service/fire evacuation/ goods, etc
b) Capacity in the form of number of passengers.
c) The speed of life specified as Metre per second.
According to Subham Chatterjee Associate Partner, ALMT Legal, "This order was necessary considering the developers were not mentioning the facilities and amenities in the agreement for sale. The homebuyers, especially those who had booked under construction flats, would feel deprived while receiving possession of the project without the amenities as promised at the time of purchase. They had limited recourse against the developers in the absence of these amenities, with size and handover date, absent from the agreement for sale. This issue has been resolved to a large extent in view of this order."
Where can you find the facilities and amenities details
According to the MahaRERA order, the facilities/amenities shall be detailed/ mentioned in the Annexure '1' and this shall be the same as the list mentioned in the registration Form-A under 'Common Areas, Facilities and Amenities," and in Table B of Form 1- Architect Certificate.
"This order is very beneficial for homebuyers as it ensures that developers are clear and transparent about the amenities they promise, including when they will be completed. Moreover, this MahaRERA order requires developers to specify the exact dates for the delivery of amenities and the expected date of obtaining the occupation certificate (OC). This measure is indeed aimed at protecting homebuyers by ensuring that developers cannot alter these dates arbitrarily. By mandating this level of detail in the agreements, it adds a layer of accountability and transparency, thereby safeguarding the interests of homebuyers and ensuring they receive what was promised within the stipulated timeframe," says Rishabh Gandhi, Managing Partner, Rishabh Gandhi and Advocates.
"For any major revisions, changes, shifting or corrections in the amenities, facilities, or common areas, a correction application should be submitted," said MahaRERA in its order.
Further, MahaRERA directed that all the clauses incorporated in Annexure-1 are non-negotiable, meaning that the promoter cannot make a false and empty promise.
"The clause to be incorporated in the manner as stated in Annexure-1 shall be considered as non-negotiable clause and the Authority shall take such action as enumerated in MahaRERA Order 38/2022, if same are not provided in the proforma of the agreement of sale and in the agreement of sale to be executed between the promoter and the allottees or if the same is/are modified," said MahaRERA in its order.
Chatterjee opined that "the developer would still be in a position to apply for occupancy certificate (OC) or part occupancy certificate (part OC) with the amenities remaining incomplete. It would be noteworthy to see whether the municipal commissioner views this aspect strictly while granting OC or part OC to the project of the developer."
[The Economic Times]
