MAHA RERA TRAINING KEYNOTES FOR EXAM PREPARATION

Prepared By: Mohammed Javed Shaikh (Real Estate Agent In Act Refer “zm”)

Gen Secretary – Foundation Of Mira Bhayandar Property Dealers Associations

INTRODUCTION
UNDERSTANDING OF MAHA RERA & ITS FUNCTION

RERA ACT : REAL ESTATE ( REGULATION AND DEVELOPMENT ) ACT 2016

The Central Government brought in the Real Estate (Regulation and Development) Act,
2016, (RERA) to be made fully operational with effect from May 1, 2017. Some sections of
the Act were notified from 1st May 2016 and all the State Governments were given one year
to formulate their own Rules and Regulations and set up the Authority, to implement the
Act from 1st May 2017.

Real Estate Agents are the important stakeholders for the allottees and hence should
have comprehensive understanding of the real estate transaction in order to guide the
allottees and prevent disputes.

Key Components of the ACT

• Ensuring Disclosures of Real Estate Projects by Promoters

• Real Estate Projects Registration
• Real Estate Agents Registration
• Complaints Redressal

• Provide recommendations to appropriate Government on matters relating to the

development & promotion of real estate sector

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 1
Maharashtra Real Estate Regulatory Authority (Maha RERA)
KEY Pillars –TAFCC (Short Keys)

 Transparency

 Accountability

 Financial Discipline

 Customer Center city

 Compliance

Portal :https://maharera.mahaonline.gov.in/Home/Index

Website is ISO 9001:2015 CERTIFIED

FEATURES OF WEBISTE

View /Search Real Estate Project Details

Real Estate Agent /Promoters registration /Renewal

Make Complaint (Agents / Allottees /Promoter)

Search Orders

Updates

Downloads Forms

Real Estate Agents (Chapter II, Sections 3 to 10)

Who is Real Estate Agents as per RERA? As Per the Section 2 (zm) of the Act Real Estate
Agent is Any Person who negotiates between one or more parties to sell/buy /transfer a
plot Or Apartment Or Building and receives remuneration or fees or commission may be
called property dealers,brokers,middleman.

Type of Real Estate Agents

1. Individual Fees Rs 10000/-

2. Other than Individuals (Company, Partnership) Fees Rs 100000/-

Registration of Real Estate Agents

 Application in Form “G”

 Registration in Form “H”

 Renewal in Form “J” ( At Least 60 Days Prior)

 Registration of renewal In Form ‘K”

 Rejection in Form ‘I”

Real Estate Agents Should Display Registration Certificate at their offices & Branches & as
per New guidelines Display QR Code in All Advertisements.(Recent Order)

 Shall maintain Books of Accounts ,Financial & Legal records

 These records can be called by Authority during renewal.

 Order: QR code is compulsory in promotions/ advertisement.

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 2
Revocation:
A per Rule 15 on breach of any terms And conditions under the Act certificate will be
revoked in Form “I” The agent cannot apply For at least 6 months.

6. Real Estate Projects & Promoters

The Promoter is defined as per Section 2 (zk) of the Act

This Means Builders Developers Colonizer Etc

Real Estate Project is defined as per Section 2 (zn) of the Act

No Registration is required if Project

 Land Does Not exceed 500 Sq mtr

 Does not exceed Eight Apartments

 OC Received before to this act

 Repair /Redevelopment Does not involve Marketing/Sales

List of Documents required By Promoter for registration

 Company Details

 Past Expertise ,Current Status of Project ,Pending Case

 All Approvals Copy Of CC,Approve Plans,Layout Plans.

 External Amenities List ,Open Space Area

 Performa Of Allotment & Agreement for sale ( Any Changes File Deviation Report To
Authority)

 Number of Flats/Apartments Type Carpet Area Exclusive Balcony ,open

Terrace,garage .

 Name Of Estate Agents ,Contractors ,Architect, Structural Engineer.

Forms for Promoters

 Form 1 (Architect’s certificate for withdrawal from designated bank account)

 Form 2 (Structural Engineer’s Certificate for withdrawal from designated bank

account)

 Form 3 (CA Certificate for withdrawal from designated bank account)

 Form 4 (Architect's certificate on completion of Registered project)

 Form 5 (Annual report of withdrawal from designated bank account)

 Form 2A (Engineer’s Certificate on Quality Assurance submitted annually)

 Legal Title to the land

 Encubrances (Free from All Encumbrances)

 Delivery Period (Possession Date)

 Declaration for 70% in Escrow Account for Construction

After Submission Certificate in 30 days Or In next 7 days Certificate will be released.

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 3
Application can be withdrawal by promoter before 30 days of submission Rs 5000 is
retained as administrative charges.

Extension of Project

Under Sec 6 “Force Majeure” shall mean Case of War,Flood,Fire Cyclone Earthquake any
other calamity caused by nature like Covid 19. Extension Allowed for 1 year as fees
Describe by Authority.

Extension is allowed if Promoter not default Max 1year

Under Sec 7 (3) Association of Allotters by majority can Allow Promoter to Extend further

Revocation Of Registration

As Per Sec 7 ,”Suo Motu” on the receipt of Complaint

Promoters makes Default in doing anything required by Authority.

Any unfair practice

After Revocation Of registration

Name/Photo in the Defaulter list on Website

Facilitate Remaining Development Works ( By Association Of Allotees Or Competent

Authority)

Holding /Freeze Bank Account

Function & Duties Of Promoters

 Quarterly Update Progress of the Project

 Quarterly Up to date list of Booked Apartments/Garages.

 Quarterly Up to date List of Approval Plans

 Financial Physical Status of Project

 Project Completion on Date Given

 Obtaining the OC / Lease Certificate ( If Any)

 Paying All outgoing Until transfer to Association of Allottees

 Maintaining the Essential services till Formation of Association

 Formation Association of Allottees After 51 % Apartments Booked within 3 months

 As per Sec 17 After OC Conveyance Deed within The 30 days

 As per Rule 9 (2) (ii) of the MAHARERA Rules, 2017, if no period for conveying the
title of the Promoter to the legal entity of the allottees is agreed upon, the promoter
shall execute the conveyance within three months from the date of issue of
occupancy certificate or 50% of the total number of allottees in such a building or a
wing, have paid the full consideration to the promoter, whichever is earlier.

 Shall Not Accept more than 10% Payment of the cost without Executing agreement
for Sale

 Project should be developed as per Sanctioned Plans.

 No change in plans without consent of Allottees at least two third consent of allottees

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 4
DLP (Defect Liability Period) Of Five Years.

Defect liability period shall be 5 (five) years from handing over possession of the apartments
to allottees.

Latest Orders:

 QR code is henceforth compulsory for promotions and advertisement.

 Every promoter should establish Grievance Redressal Cell for allotees.

Transfer of Project

Promoter shall not transfer or assign his majority rights and liabilities in a project without
prior written consent of 2/3rd allottees and the Authority

Promoter fails To Complete Or Unable To Give Possession on given period then

Pay Monthly Interest Or Return the Payment with as per Prescribed Interest as allottee
wishes

7.Allotees & Their Responsibilities

Rights Of Allottees

 Access To Information

 Project Related Sanction Plans

 Stage Wised Schedule of Completion of project & Amenities

 Entitled to OC

 Entitled to remedy from RERA against Wrongful Cancellation

 Entitled to claim refund/Compensation & Interest

 Claim Compensation for Loss Caused By Defective Title

 Entitled to Execution of Conveyance deed

 Claim the possession of Common Areas

Obligation of Allottees

 Responsible To Make Payments As per Schedule

 Responsible To Pay their Share of the Registration Charges Maintenance & other
charges

 Shall be Liable to pay interest for any delay payments

 Shall Participate in Formation of Association & Conveyance Deed.

Form For Dispute Resolutions

Complaints for Only Maha RERA Register Projects

File complaint on Online with registration number of project

 1St Maha RERA Adjudicating Officer

 2nd Appellate Tribunal (From Dec 2018)

 3rd High Court

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 5
Conciliation

Promote and popularise the amicable and effective settlement of disputes arising with
reference to Real Estate (Regulation and Development) Act 2016, with various Alternate
Dispute Resolution (ADR) mechanism With Moderate Cost And Speedy Settlements .

15 conciliation benches were established of which 10 benches were in Mumbai

Metropolitan Region (MMR) and 5 benches in Pune Region. Each bench has one conciliator
representing the Consumer body and one from promoter body.

Appeals :

Maharashtra Real Estate Appellate Tribunal (Maha REAT) 2018

The Parties an opportunity of being Heard pass such order

Any person aggrieved by the order of Appellate Tribunal can file an appeal to High Court.

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 6
Penal Provision for Promoter:

1. Punshiment for Non Registration: Up to 10 % of the project cost. If continues the three
years imprisonment or with fine extended up to further 10% of the project cost, Or with
both.

2. For false Information 5% for the project Cost.

3. For Contravention of the Act 5% of the Project Cost.

4. Failure to Comply with orders Every day Penalty which may cumulatively extend up to
5% of the project cost.

5. Failure to comply with order of Appellate Tribunal Punishable with Imprisonment for a
term which may extend up to three years with fine for every day which may cumulatively
continue up to 10% of project cost or with Both.

Penal Provision for Real Estate Agents:

1. Non Registration & Contravention Ten thousand for everyday default continues which
may cumulatively up to 5% of the Deal

2. Failure to comply with orders every day Penalty which may cumulatively extend up to
5% of the deal.

3. Failure to comply with order of Appellate Tribunal Punishable with Imprisonment for
a term which may extend up to one Year Imprisonment with fine every day may
cumulatively extend up to 10% cost of deal.

Penal for Allotteees:

1. Failure to Comply with orders up to 5% of deal.

2. Failure to comply with order of Appellate Tribunal Punishable with Imprisonment for
a term which may extend up to one Year Imprisonment with fine every day may
cumulatively extend up to 10% cost of deal.

Offence by Companies:

1. any director, manager, secretary or other officer of the company, such director,
manager, Secretary or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.

8. Due Diligence:

1. Verify Promoter Identity

2. Title Of Property : 7/12 ,Search report of 30 Years Etc.

3. Building Approvals

A ) NA B) Zonal Plan C) layout Plans, Approvals

D ) CC ( See Form D(from promoter) for CC Levels )

E) IOD (If Req)

Major NOCs listed

 Non-Agriculture (NA) permission

 Tree Authority
 Storm Water and Drain Department
 Sewerage Department
 Hydraulic Department
Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 7
  Environmental Department (concerned with debris management)
 Consent to Establish & Operate
 Ancient Monument Approval
 Airports Authority of India
 Traffic and Coordination Department
 CFO (fire clearance)
 Structural Plan Approval etc.

4.Status Of Tax payments : Must Check Any Payment Pending from Promoters

5.Litigations :Promoters Provides list of All Litigation on Maha RERA website

6.Allotment Letter & Model AFS : As Per Performa on Maha RERA Website

7.Maha RERA Carpet : Net Usable floor Area ,Only Including internal partition walls of the
apartments.

9.Sales Process forms / Agreements

Allotment Letter : model allotment letter comprising of following details:

• Details of the proposed apartment / plot

• Details of parking space allotted (if any)
• Amount of Payment received by Promoter
• Various Documents including sanctioned plans, stage wise schedule of completion and so
on
• List of Encumbrances
• Proposed Date of Possession
• Terms for Cancellation of allotment
• Other terms and condition governing the allotment letter

Model of Agreement for Sale (AFS): Register Under Indian Contract Act 1872

A road map on how property transaction will be completed

The Key Details on AFS needs to be reviewed by Agent & Allotees

 Details of the Project Plans ,Apartment Layout Etc.

 Carpet Area Parking Allotted, Fixtures & Fitting Annexure

 Total Consideration ,Payment Schedule

Payment Schedule Construction Milestone

Not Exceeding 10% Before Agreement for Sale
Not Exceeding 30% After Agreement for Sale
Not Exceeding 45% Completion of the PLINTH
Slabs, Walls .Internal Plaster ,Flooring, Doors
Not Exceeding 70% ,Windows
Sanitary Fittings staircase, Lift Wells, Lobbies up to
Not Exceeding 80% the Floor Levels
External Plumbing, Plaster ,Elevation, Terraces
Not Exceeding 85% with Waterproofing
Lifts, water Pumps, Electrical fitting All Finishing
Not Exceeding 95% Work as per AFS
Balance Amount Handing Over the Possession OR OC OR CC

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 8
Deduction after Allotment Letter (Cancellation of Apartment)

 15 days Nil

 16 -30 Days 1% Of Cost

 31-60 days 1.5% of the Cost

 After 60 days 2% of the Cost

Should Return in 45 days Late payment Interest MCLR +2%

Taxes
TDS :194 IA of the Income Tax Act

 Buyers Need to Deduct 1% on 50 lakhs & Above.

 As Per Union Budget of 2021 New Sec 194 Q, TDS 0.1% on property purchase of
more than 50 lakhs in one Year the person whose turnover is more than 10 Crores.

 TDS for NRI 20%

 If NRI Property Sold two years from the date of the Purchase then TDS 30%

 Long term Capital gain Taxed 20%

 TDS Fill form 26QB to Credit.

Home Loan:

Cheapest Mode of Financing

 Tenure Generally 20 Years To 30 Years

 Interest Type Fix & Floating

GST : Goods & Service tax

Earlier 12% after April 2019

Type GST
Affordable Housing 1% without ITC
Non Affordable Housing 5% without ITC

GST On Commercial Property

Type GST
GST On Commercial Properties In Residential Real
Estate Projects 5%
GST on other commercial properties 12%

Registration charges

Indian Registration Act 1908

The property registration charges in Maharashtra are 1% of the total cost for the properties
priced below Rs 30 lakh and capped at Rs 30,000 for properties priced above Rs 30 lakh.

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 9
Stamps Duty

 Stamp Duty Act 1958 Also Know As Bombay Stamp Act

 charge is calculated on the basis of the Ready Reckoner rates issued by the
government

 The stamp duty in Maharashtra varies between 5% and 7%, depending on various
factors.

 Women buyers are provided a concession of 1% over the prevailing stamp duty

Stamp Duty Calculations Mumbai

Buyer Stamp Duty rates Registration Charges

For properties above Rs 30
Male 6% (Stamp duty 5% + metro cess 1 ) lakh - Rs 30,000
For properties below Rs 30
lakh - 1% of the property
Female 5% (Stamp duty 4% + metro cess 1% + ) value

Stamp Duty Calculations For Thane/Pune/Nagpur/Navi Mumbai/Pimpri

Buyer Stamp Duty rates Registration Charges

For properties above Rs 30
7% (Stamp duty 5% + metro cess 1 + Local Body
lakh - Rs 30,000
Male Tax (LBT) 1%)
For properties below Rs 30
6% (Stamp duty 4% + metro cess 1% + Local lakh - 1% of the property
Female Body Tax (LBT) 1%) value

Disclaimer:

 Above Notes are Extract of Maha RERA Real Estate Agent Handbook

 But added some Updates/New orders.

 Some Short sentences are for fast review.

 Notes are for Revision Purposes & overview.

 I ensured that every single corner of the handbook was covered in these notes.

 Kindly let me know if there are any corrections Or Addition

 These notes are free to circulate for Learning.

Regards

Javed Shaikh

Gen Secretary – Foundation Of Mira Bhayandar Property Dealers Associations

Mumbai Property Guru & Future Properties & Investments

Contact/WAP: 9867557176 Email Id: grtfuture@gmail.com , javed.activist@gmail.com

Social Media Id: javed.activist OR Javed Shaikh

Key Notes for Maha RERA Exam By Javed Shaikh-Mo: 9867557176 Page 10