MahaRERA outlines key rights for homebuyers (allottees) in Maharashtra, including access to information, occupancy certificate entitlement, remedies for wrongful cancellations, and compensation claims. Allottees must also fulfill duties like timely payments, association participation, and legal compliance, ensuring a transparent and accountable real estate market in the state.
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector in India. One of the key stakeholders in the real estate industry is the allottee, commonly known as the homebuyer or purchaser. Allottees play a pivotal role in the functioning of the real estate market, and they are granted specific rights and duties under MahaRERA (Maharashtra Real Estate Regulatory Authority), which is the regulatory body for the state of Maharashtra. This article provides an in-depth exploration of the rights and duties of allottees under MahaRERA.
Rights of Allottees
1. Access to Information
Allottees, under Section 19(1) of RERA, are granted a fundamental right to access critical information related to their property purchase. This includes:
- Sanctioned Plans and Layout Plans
Allottees have the invaluable privilege of accessing the sanctioned plans and layout plans of the project, which have received approval from the competent authority. This transparency allows allottees to scrutinize and understand the physical layout and architectural design of their future homes.
- Specifications
Allottees possess the right to demand detailed information about the specifications of the property they are purchasing. This access ensures that they are fully aware of the quality, materials, and features that the developer has committed to providing, giving them a basis for evaluating the value of their investment.
- Agreement for Sale
Information within the agreement for sale, the legally binding contract between the allottee and the promoter, is readily accessible to the allottees. This document serves as a vital reference, as it lays out the terms and conditions governing the property transaction. Having access to this agreement empowers allottees with a clear understanding of their rights and responsibilities, ensuring a fair and transparent exchange.
- Time Schedule
Allottees have the right to be informed about the stage-wise time schedule for the completion of the project. This schedule encompasses various milestones, including provisions for water supply, sanitation, electricity, and other essential amenities agreed upon in the agreement for sale. This comprehensive disclosure assists allottees in monitoring the progress of the project, offering assurance that the developer is adhering to the agreed-upon timeline.
Access to this information equips allottees with the knowledge they need to make informed decisions about their property investments. It fosters transparency, accountability, and mutual trust between the parties involved in the real estate transaction. By providing such critical information, MahaRERA ensures that allottees are well-informed and can actively engage in the process of property acquisition, leading to a more fair and equitable real estate market.
2. Entitlement to Occupancy/Completion Certificate
One of the crucial rights granted to allottees under MahaRERA pertains to the acquisition of the Occupancy or Completion Certificate. The responsibility for obtaining this certificate rests with the promoter, who is responsible for the project’s development. Once obtained, it becomes the promoter’s obligation to provide this certificate to the allottees.
The Occupancy Certificate, also known as the Completion Certificate, serves as a testament to the property’s compliance with all legal, quality, and safety standards. This certificate essentially signifies that the property is ready for occupancy by its rightful owners, the allottees. Here’s why this certificate is of utmost importance:
- Compliance Assurance
The Occupancy Certificate guarantees that the property has been constructed in accordance with all the applicable laws, regulations, and building codes. It attests that the construction has met the necessary safety and quality standards, ensuring the well-being of the residents.
- Legal Standing
This certificate holds a strong legal standing. It is often a prerequisite for utility connections, such as water and electricity, to be provided to the property. It also plays a crucial role in securing necessary approvals and clearances from local authorities.
- Occupancy Rights
For allottees, the Occupancy Certificate is their ticket to taking possession of the property. It marks the completion of the project and signifies that the property is now fit for living. This right to occupy the property is a pivotal moment for any homebuyer.
- Quality Assurance
The certificate also ensures that the property is built to the quality standards promised by the developer. It offers allottees peace of mind, knowing that their investment has resulted in a property that meets the agreed-upon specifications and standards.
The Entitlement to Occupancy/Completion Certificate under MahaRERA safeguards the interests of the allottees. It ensures that they do not take possession of a property that does not meet the requisite standards and that they are protected from any potential safety or legal issues. This right is fundamental in assuring the quality and legality of the property transaction, benefiting both the allottees and the integrity of the real estate industry.
3. Remedy Against Wrongful Cancellation of Allotment
One of the significant rights granted to allottees under MahaRERA is the ability to seek redressal in cases of wrongful cancellation of their allotment by the promoter. Wrongful cancellations can lead to a great deal of stress and financial loss for allottees, and the RERA framework provides a robust remedy in such cases.
For an allotment cancellation to be considered wrongful, it must meet specific criteria:
a. Non-Alignment with the Agreement of Sale
The cancellation must not align with the terms and conditions outlined in the Agreement of Sale, which is the legally binding contract governing the property transaction. If the cancellation deviates from the agreed-upon terms, it can be considered wrongful.
b. Unilateral Cancellation
The cancellation must be unilateral, meaning that it is not a result of mutual agreement between the parties involved. If the promoter cancels the allotment without the consent or agreement of the allottee, it is considered wrongful.
c. Lack of Sufficient Cause
The cancellation must be without sufficient cause. In other words, there should be no justifiable reason for the cancellation. This ensures that allottees are protected from arbitrary cancellations that could negatively impact their property investment and future plans.
In cases where these conditions are met, allottees have the right to approach the regulatory authority, RERA, seeking a remedy for the wrongful cancellation of their allotment. This remedy can take various forms, including reinstating the allotment, seeking compensation, or pursuing any other action deemed appropriate by RERA.
This right to seek redressal is pivotal in protecting the interests of allottees and ensuring that they are not unfairly treated by promoters. It provides a clear avenue for allottees to address disputes and grievances related to allotment cancellations, promoting transparency and fairness in the real estate sector. Ultimately, this right underscores the significance of adhering to the terms and conditions of the Agreement of Sale, providing a legal framework to address any deviations from the agreed-upon terms.
4. Claim Compensation and Interest
Under Section 19(4) of RERA, allottees are bestowed with a vital right – the ability to claim compensation, interest, and a refund under specific circumstances. This provision is designed to protect the interests of allottees when the promoter fails to fulfill their obligations as per the Agreement for Sale. The circumstances under which allottees can exercise this right include:
- Failure to Complying with the Agreement for Sale
If the promoter breaches the terms and conditions outlined in the Agreement for Sale, the allottees are entitled to claim compensation, interest, and a refund. This right ensures that allottees are not left in the lurch if the developer deviates from the agreed-upon terms.
- Delayed Possession
When the possession of the property is not provided in accordance with the schedule outlined in the Agreement for Sale, allottees can claim compensation and interest. This protects the interests of allottees who may have made financial commitments based on the promised possession date.
- Project Discontinuation
In the unfortunate event of the promoter discontinuing the project due to the suspension or revocation of their registration under RERA, allottees have the right to claim compensation, interest, and a refund. This provision safeguards the interests of allottees who may be left in limbo if the project ceases due to regulatory or legal issues.
The interest rate is prescribed by RERA, ensuring that allottees receive fair compensation for the financial impact of delayed possession or project discontinuation. Additionally, the calculation of compensation is governed by the provisions of Section 19(4) of the Act.
Furthermore, in cases where the promoter fails to provide physical possession according to the Agreement of Sale, and the allottee wishes to continue in the project, the promoter is liable to pay monthly interest at a prescribed rate. This ensures that allottees are not unduly burdened by delays and are compensated for any financial inconveniences they may face.
The right to claim compensation and interest is a crucial safeguard for allottees, assuring them that their financial interests are protected under RERA. It acts as a deterrent against promoter misconduct and delays, ensuring that allottees are fairly compensated for any deviations from the agreed-upon terms and schedules. This right is a cornerstone of RERA’s commitment to securing the investments and interests of homebuyers in the real estate sector.
5. Claim Compensation for Loss Caused by Defective Title
Another critical provision under RERA grants allottees the right to claim compensation if they incur losses due to a defective title of the land on which the project is developed. This is a significant protection for allottees, as the title of the land on which the property is constructed is fundamental to the legality and security of the investment. Here’s an in-depth look at this right:
- Defective Title
A defective title refers to a situation where the promoter does not have clear and marketable ownership of the land on which the project is developed. This could arise due to legal disputes, encumbrances, or any other issues that cast doubt on the promoter’s rightful ownership.
- Loss Compensation
If the defective title leads to any loss or financial harm for the allottees, they are entitled to claim compensation from the promoter. This compensation helps offset the losses incurred by the allottees due to the defective title, ensuring that they do not bear the financial burden of the promoter’s title issues.
- No Limitation on Claim
Importantly, the claim for compensation in cases of defective title is not barred by the law of limitation. This means that allottees can pursue their claims for compensation even if a significant amount of time has passed since the discovery of the defective title. This provision ensures that allottees have a long-term legal recourse to protect their interests.
The right to claim compensation for loss caused by defective title is a crucial protection for allottees. It holds the promoter accountable for any issues related to the title of the land on which the property is constructed. This provision underlines RERA’s commitment to ensuring that allottees are not left vulnerable to legal disputes or financial losses arising from defective titles, thereby bolstering confidence in the real estate market.
6. Execution of Registered Conveyance Deed
The right to execute a registered conveyance deed is a pivotal component of the rights granted to allottees under RERA. This right is instrumental in the process of property ownership transfer and the physical possession of the property. Here’s a comprehensive look at this vital right:
- Entitlement to Possession
After the issuance of the Completion or Occupancy Certificate, allottees are entitled to claim possession of their respective apartments, plots, or buildings, as per the terms of the Agreement for Sale. This signifies that the property is now legally ready for the allottees to take possession and commence their usage.
- Claiming Common Areas
In addition to their individual properties, the association of allottees is also entitled to claim possession of the common areas within the project. This ensures that allottees have access to and control over the shared amenities and spaces within the project.
- Legal Transfer
The execution of a registered conveyance deed is a legal process through which the ownership of the property is transferred from the developer (promoter) to the allottee. It is a critical step in the property transaction, as it officially establishes the allottee as the legal owner of the property.
- Ownership and Control
With the registered conveyance deed in place, the allottee gains not only ownership but also control over the property. They can make decisions regarding its use, maintenance, and alterations, providing them with the autonomy to manage their investment.
This right ensures that allottees can take possession of their properties promptly and without hindrance once the property is deemed legally ready for occupancy. It also underscores the importance of the legal transfer of property ownership, which is a fundamental aspect of property transactions. In summary, the execution of a registered conveyance deed empowers allottees with the legal rights and ownership they need to fully enjoy and utilize their real estate investments.
Obligations of Allottees
1. Timely Payments
While allottees enjoy several rights under RERA, they also bear specific responsibilities, one of which is making timely payments. This obligation is crucial for maintaining the integrity of the property transaction and the smooth functioning of the real estate project. Here’s a detailed exploration of this duty:
- Payment Compliance
Allottees are responsible for making the necessary payments as outlined in the Agreement for Sale. These payments include several components, such as:
- Share of Registration Charges
This pertains to the fees associated with the registration of the property transaction, which is typically divided between the allottee and the promoter as per the agreement.
- Municipal Taxes
Allottees are required to pay their share of municipal taxes, which fund local services and infrastructure in the area where the property is located.
- Water and Electricity Charges
Payment of water and electricity charges is essential for the provision of these essential utilities to the property. Allottees are expected to fulfill their financial obligations in this regard.
- Maintenance Charges
Maintenance charges contribute to the upkeep of the project, including common areas and shared amenities. Timely payment of these charges ensures that the project remains in good condition for all residents.
- Ground Rent
In cases where ground rent is applicable, allottees are responsible for paying this charge as specified in the Agreement for Sale.
- Other Relevant Charges
If any other charges are applicable, whether they are specified in the Agreement for Sale or arise during the course of the project, allottees are expected to make these payments promptly.
- Adherence to the Agreement
Timely payments are essential for adhering to the terms and conditions outlined in the Agreement for Sale. These payments are part of the financial commitments made by allottees as part of the property transaction.
- Ensuring Project Viability
Timely payments contribute to the financial viability of the real estate project, enabling the promoter to meet project expenses, pay for essential services, and continue project development without disruptions.
- Collective Responsibility
Allottees’ adherence to their payment obligations is not only an individual responsibility but also a collective one. It ensures that the project can function smoothly, benefiting all residents.
Failure to make payments as specified in the Agreement for Sale can lead to financial and legal consequences, including interest on delayed payments. Therefore, allottees must diligently fulfill their payment obligations as agreed upon to support the successful execution of the real estate project. This duty is fundamental for maintaining the transparency and efficiency of the real estate market, contributing to a fair and equitable property transaction for all parties involved.
2. Interest for Delayed Payments
One of the critical obligations of allottees under MahaRERA is the requirement to make timely payments as specified in the Agreement for Sale. This duty not only contributes to the smooth functioning of the real estate project but is also backed by the provision of charging interest in the event of delayed payments.
- Interest for Delayed Payments
In cases where an allottee experiences a delay in making their payments as stipulated in the Agreement for Sale, they become liable to pay interest. This interest is charged at a rate prescribed under the Act, and its purpose is to compensate the promoter for the financial inconvenience and any associated costs incurred due to the delay.
- Timely Payments and Project Progress
Timely payments by allottees are not only an obligation but a vital necessity for the smooth progress of the real estate project. The financial contributions made by allottees are essential for covering project expenses, ensuring the provision of services and utilities, and maintaining the overall project viability.
- Penalizing Delay
The charging of interest for delayed payments serves as a means of penalizing delays, encouraging allottees to fulfill their payment obligations within the agreed-upon timeframes. This practice safeguards the financial health of the project, preventing financial strains on the promoter.
- Transparency and Accountability
The provision of charging interest for delayed payments is in line with RERA’s broader objectives of promoting transparency and accountability in the real estate sector. It ensures that allottees are held accountable for their financial commitments, contributing to a fair and equitable property transaction.
- Legal Framework
The specific rate at which interest is charged for delayed payments is prescribed by the Act. This ensures that the charging of interest is carried out in accordance with established legal parameters.
The obligation to pay interest for delayed payments underscores the importance of adhering to the agreed-upon payment schedules. It serves as both a deterrent against delays and a mechanism for the promoter to recoup any financial losses resulting from payment delays. Ultimately, this obligation reinforces the principles of accountability and transparency in the real estate sector, contributing to the efficient functioning of property transactions and projects.
3. Participation in Association Formation
Active participation in the formation of an association or society of allottees is a significant responsibility bestowed upon allottees under MahaRERA. This duty fosters a sense of collective decision-making and ensures that the interests of allottees are effectively represented. Here’s a closer look at this obligation:
- Collective Representation
The formation of an association, society, or cooperative society of allottees is a collective endeavor aimed at representing the unified interests of all the individuals who have invested in the real estate project. It ensures that the voices and concerns of allottees are heard and addressed cohesively.
- Decision-Making Power
Active participation in such associations grants allottees decision-making power over matters that directly impact their living environment. This includes decisions related to common areas, amenities, maintenance, and other shared responsibilities.
- Strengthening Allottees’ Position
By coming together and participating in association formation, allottees strengthen their position in negotiations with the promoter. This collective strength can be especially valuable in addressing common issues, grievances, and maintenance concerns.
- Ensuring Accountability
Associations play a vital role in holding the promoter accountable for the promises made during the project’s development. They act as a mechanism for ensuring that the project continues to meet the agreed-upon standards and that any issues are addressed promptly.
- Facilitating Communication
Associations serve as a platform for effective communication between allottees and the promoter. They can facilitate discussions, agreements, and dispute resolutions, contributing to a more harmonious living environment.
- Legal Compliance
The obligation to participate in association formation is in line with legal requirements and the provisions of RERA. It ensures that the promoter and the allottees adhere to the legal framework established for the real estate sector.
The duty to actively participate in the formation of an association or society of allottees serves as a means of empowerment and representation for allottees. It promotes the collective well-being of residents within a real estate project and ensures that their interests are safeguarded through unified action and decision-making. This duty reinforces the principles of community and cooperation in the real estate sector, ultimately leading to a more harmonious and accountable living environment for all allottees.
4. Timely Possession
Allottees are entrusted with a vital responsibility – taking physical possession of their apartments, plots, or buildings within a prescribed timeframe. This obligation is a cornerstone of MahaRERA, and it plays a pivotal role in ensuring the efficient utilization of the property and project amenities. Here’s an in-depth exploration of this responsibility:
- Prescribed Timeframe
Allottees are required to take physical possession of their allotted properties within two months from the issuance of the Occupancy Certificate. The Occupancy Certificate signifies that the property is legally ready for occupancy, and this time frame ensures a prompt transition to the property.
- Efficient Property Utilization
Timely possession ensures that the property can be efficiently utilized for its intended purpose, whether it’s for residential, commercial, or any other use. It allows allottees to enjoy the benefits of their investment and the amenities provided within the project.
- Compliance with Legal Framework
This obligation aligns with the legal framework established by RERA. It not only safeguards the interests of allottees but also ensures that the project adheres to the regulatory requirements for timely handover.
- Minimizing Project Delays
Timely possession is also a measure to minimize project delays. It contributes to the orderly progression of the project, as delayed possessions can lead to operational challenges for both allottees and the promoter.
- Access to Amenities
Timely possession grants allottees access to the amenities and services agreed upon in the Agreement for Sale. It enables them to make use of common areas, utilities, and facilities within the project.
- Ensuring Property Value
The prompt possession of the property by allottees can also contribute to maintaining and potentially increasing the property’s value. An unoccupied property can lead to depreciation and maintenance challenges.
The responsibility of taking timely possession of the property is pivotal for the efficient functioning of the real estate project. It not only ensures that allottees can enjoy the benefits of their investment but also contributes to the overall project’s success and compliance with regulatory standards. This obligation is a fundamental aspect of RERA, designed to protect the interests of allottees and promote transparency and accountability in the real estate sector.
5. Registration of Conveyance Deed
Participating in the registration of the conveyance deed is a vital responsibility assigned to every allottee under MahaRERA. This step serves as the final and formal process of legal property ownership transfer from the promoter to the allottee. Let’s delve deeper into this important duty:
- Legal Property Transfer
The registration of the conveyance deed is a legal procedure through which the ownership of the apartment, plot, or building is officially transferred from the developer (promoter) to the allottee. This is a critical step in the property transaction, as it establishes the allottee as the legal owner of the property.
- Ensuring Ownership Rights
By actively participating in the registration of the conveyance deed, the allottee secures their ownership rights and legal standing in the property. This registration provides a clear and unambiguous record of property ownership.
- Protecting the Investment
Property ownership is a significant investment, and the registration of the conveyance deed is a safeguard that ensures the allottee’s investment is protected and recognized under the law.
- Facilitating Property Transactions
A registered conveyance deed is a fundamental requirement for any future property transactions, such as resale or transfer. It ensures that the property’s title is clear and can be easily verified, making future transactions more straightforward.
- Compliance with Legal Framework
This responsibility aligns with the legal requirements set forth by RERA. It ensures that the property transaction is carried out in accordance with the legal framework established for the real estate sector.
- Ownership and Control
With the registration of the conveyance deed, the allottee not only gains ownership of the property but also full control and decision-making authority over it. This includes the right to make alterations, rent or lease the property, and enjoy all associated ownership benefits.
Participation in the registration of the conveyance deed is a crucial responsibility that underlines the legal transfer of property ownership from the promoter to the allottee. It solidifies the allottee’s position as the rightful owner of the property and serves as a cornerstone of property transactions, contributing to the transparency and integrity of the real estate sector. This duty reinforces the principles of legal compliance and property rights protection, benefitting both allottees and the overall real estate market.
6. Compliance with Laws and Regulations
Allottees are entrusted with a fundamental responsibility – to adhere to the provisions of the Real Estate (Regulation and Development) Act (RERA), as well as the rules, regulations, and orders made by the regulatory authority. This compliance is crucial for ensuring transparency and accountability in the real estate sector. Here’s a more detailed look at this essential duty:
- Legal Compliance
Compliance with the laws and regulations set forth by RERA is not only a duty but a legal obligation for allottees. These laws and regulations are designed to protect the interests of homebuyers, promote fairness in property transactions, and establish a framework for the real estate sector.
- Transparency and Accountability
Compliance with these provisions is pivotal for maintaining transparency and accountability within the real estate market. It ensures that all parties involved, including allottees, promoters, and regulatory authorities, follow a standardized set of rules and regulations, which in turn minimizes disputes and grievances.
- Protection of Rights
Adhering to RERA provisions safeguards the rights of allottees. It ensures that they are protected from unfair practices and that their investments are secure and legally recognized.
- Fair Property Transactions
By complying with the legal framework, allottees contribute to the promotion of fair property transactions. This is essential for fostering trust in the real estate market and encouraging more individuals to invest in properties.
- Regulatory Compliance
It is important to note that RERA rules and regulations are not arbitrary; they are carefully crafted to ensure the smooth functioning of the real estate sector. Compliance with these rules is essential for the effectiveness of the regulatory framework.
- Dispute Resolution
In the event of disputes or grievances, adherence to RERA provisions simplifies the process of dispute resolution. It provides a clear legal framework for addressing issues and seeking remedies.
The responsibility of compliance with the laws and regulations established by RERA is a fundamental duty for allottees. It upholds the principles of fairness, transparency, and accountability within the real estate sector. Compliance ensures that the interests of allottees are protected and that they can invest in properties with confidence, knowing that they are operating within a well-regulated and legally sound environment. This duty is a cornerstone of RERA’s commitment to creating a fair and transparent real estate market for all stakeholders.
Conclusion
MahaRERA, through the Real Estate (Regulation and Development) Act, has established a comprehensive framework that outlines the rights and duties of allottees in the real estate sector. These provisions are designed to protect the interests of homebuyers, promote transparency, and provide clear guidelines for the functioning of real estate transactions and projects. Understanding and exercising these rights and fulfilling the associated duties is essential for both allottees and promoters to ensure a fair and efficient real estate market in Maharashtra.
This framework, along with the active participation of all stakeholders, contributes to the growth and stability of the real estate industry, fostering trust and confidence among homebuyers and developers alike. As the real estate sector continues to evolve, the rights and duties of allottees will remain a critical component in upholding the principles of accountability and transparency in the industry.
MahaRERA, through its stringent regulations and the diligent observance of rights and duties by all parties, is instrumental in building a thriving real estate ecosystem that benefits all stakeholders. In the long run, adherence to these guidelines ensures the creation of a real estate sector that is marked by reliability, integrity, and lasting customer satisfaction.
