Role of RERA in Protecting Homebuyers in Maharashtra
Buying a home in Mumbai or its suburbs like Chembur, Wadala, or Kurla used to be a risky process, especially with delayed projects, false promises, and a lack of transparency. But the introduction of RERA (Real Estate Regulatory Authority) changed the game for homebuyers across Maharashtra.
Let’s understand how RERA protects you:
What is RERA?
- A regulatory act passed in 2016 to ensure transparency and accountability in the real estate sector
- Applicable to both residential and commercial projects
- Maharashtra RERA (MahaRERA) was the first to go live in India
Website: https://maharera.mahaonline.gov.in
Key Protections RERA Offers Buyers
Mandatory Registration
- Builders must register all new projects above 500 sq.m. or 8 apartments
- Only registered projects can be legally advertised or sold
Advance Limit Set at 10%
- Developers cannot demand more than 10% of the property cost before signing a sale agreement
Project Completion Timelines
- Developers must commit to a possession date
- Any delay can lead to penalties and compensation to buyers
Escrow Account for Funds
- 70% of funds collected from buyers must be kept in an escrow account—used only for that specific project
Right to Information
- Buyers can view all project details like approvals, plans, possession dates, and past records on the MahaRERA website
Defect Liability Period
- Builders are liable to fix any structural defect or poor workmanship for 5 years post-possession
Grievance Redressal
- Buyers can file complaints online
- RERA decisions are binding and faster than traditional courts
Why RERA Matters in Mumbai Real Estate
- Mumbai’s market was infamous for delays and disputes
- RERA has brought in discipline, especially in emerging hotspots like Chembur, Bhandup, and Ghatkopar
- Helps buyers make informed, secure, and transparent decisions
How to Use RERA for Your Benefit
- Always check if a project is RERA registered
- Review the builder’s compliance history on MahaRERA
- If there’s a delay or deviation, you have the legal right to seek compensation
Conclusion
RERA has empowered buyers and made real estate in Maharashtra more buyer-friendly. It’s now easier to buy a home in Mumbai with confidence.
At Upgrade Realty, we only deal in RERA-approved projects and guide buyers through compliant, safe investments, whether you’re eyeing Chembur or South Mumbai. Let’s make your homebuying journey secure and stress-free!