With the Real Estate (Regulation and Development) Act (RERA) coming into effect, real estate developers and brokers across Maharashtra are hastening to comply with the Act’s registration requirements. The state has witnessed the registration of housing projects by more than 400 developers in the first three days of the Act’s rollout. Meanwhile, over 700 brokers have also applied for getting themselves registered under the Act. The rush amongst developers and brokers is due to the fact that the new Act does not allow them to practice until they get registered with the authority.
Experts applaud the enthusiasm of the realtors and brokers in the state and expect all ongoing residential projects to be registered in the next three months. It must be noted that Maharashtra was the first state to notify its RERA rules and one of the first to appoint an intermediate authority. Gautam Chatterjee, a senior IAS officer, has been appointed as the interim regulator in the state.
Coming into effect on May 1, the ambitious legislation requires all under-construction projects to be registered with the authority by July 2017 to comply with the regulations. The Act does not permit the launch of any projects without registration, which is a major shift from the earlier trend of prelaunch sales.
Other notable mentions in the Act are the mandatory disclosure of project-related information, including project plan, layout, and approvals, and the requirement for an escrow account. Further, RERA discourages major changes in a project until they have been received the consent of two-third homebuyers in that project.