Maharashtra: No MahaRERA Registration Required for Projects Under 500 Square Meters
MahaRERA Project Exemption Rules: In a move to simplify the real estate registration landscape, the Maharashtra Real Estate Regulatory Authority (MahaRERA) recently clarified its stance on registration requirements. Under this revised order, projects covering a land area of 500 square meters or less, or those containing up to eight units, are now exempt from mandatory registration. Issued on October 22, 2024, this directive replaces previous regulations and clarifies ambiguities for developers across Maharashtra.
What is MahaRERA?
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a governing body established under the Real Estate (Regulation and Development) Act of 2016. MahaRERA enforces guidelines that ensure accountability, transparency, and fairness in real estate transactions.
Overview of the New MahaRERA Directive
The recent MahaRERA directive eliminates mandatory registration for real estate projects occupying 500 square meters or fewer or containing up to eight units. This exemption reduces the administrative burden on developers, allowing projects that fall within these criteria to proceed without registration-related obstacles.
Why Was the Registration Requirement Changed?
The MahaRERA directive aims to streamline project registration, reduce compliance costs for developers, and simplify the regulatory landscape. By exempting smaller projects, MahaRERA intends to promote real estate development while ensuring customer protection.
Key Criteria for MahaRERA Exemption
Projects meeting either of the following criteria qualify for exemption:
- Land Area: Projects on 500 square meters or fewer
- Units: Projects containing no more than eight residential units
Clarification on Project “Completion”
The order clarifies that a project’s completion status includes a finalized sub-division layout, necessary authority approvals, and non-agricultural use permissions (if applicable). Once these conditions are met, the project is deemed complete and exempt from additional regulatory requirements.
Impact on Plotted Projects
For plotted developments, the new order removes the requirement to register the Agreement for Sale or Sale Deed if the project is complete according to MahaRERA standards. This simplifies the process for developers, as they can avoid further administrative steps.
Comparison with Previous Regulations
Earlier MahaRERA rules required all projects, regardless of size or unit count, to register, resulting in a more complex and costly process. The latest directive supersedes prior regulations from 2019, 2022, and 2023, offering a clearer framework for smaller projects.
How This Affects Real Estate Developers
Developers working on small-scale projects now face fewer regulatory hurdles. This change can expedite project timelines, reduce compliance costs, and provide a faster path to market.
Impact on Property Buyers
While the directive benefits developers, buyers should exercise caution. Projects exempt from MahaRERA registration may lack some of the data transparency provided by registered projects, making thorough due diligence essential for prospective buyers.
Is This a Step Towards Transparency?
The streamlined approach may be perceived as reducing transparency, as fewer projects undergo the scrutiny of MahaRERA. However, by focusing on large-scale developments, MahaRERA can potentially improve oversight where it matters most.
Advantages of the New MahaRERA Directive
- Reduced Compliance Costs: Developers save time and resources.
- Clear Guidelines: The directive removes previous ambiguities.
- Encouragement of Small-Scale Projects: Incentivizes smaller developments.
Potential Risks and Limitations
While beneficial for developers, the new rule may increase the risk for buyers, as unregistered projects may not provide full project data in the public domain.
Expert Opinions on the Directive
Dhiraj Mandal, Director of Mumbai Realtors, advises caution when purchasing unregistered properties due to limited transparency. He stresses that registered projects typically offer greater assurance to buyers.
How to Verify if a Project Meets Exemption Criteria
Prospective buyers can inquire about the project’s land area and unit count. Developers should also be able to provide documentation confirming the exemption criteria under the latest MahaRERA directive.
Final Thoughts
The updated MahaRERA guidelines represent a shift toward simplified, development-friendly regulation in Maharashtra. By relieving small projects of mandatory registration, MahaRERA aims to encourage growth while ensuring that compliance for larger projects remains robust.
- What is the new MahaRERA registration exemption rule? Projects under 500 square meters or with up to eight units are now exempt from registration.
- Does this exemption apply to all real estate projects? No, only projects meeting the land area or unit criteria are exempt.
- Is buying an unregistered property safe? Due diligence is essential, as unregistered properties may lack some transparency.
- Does the new rule affect existing registered projects? No, this exemption applies only to qualifying new projects.
- How can I verify if a project qualifies for MahaRERA exemption? Confirm with the developer that the project meets the size and unit criteria specified in the order.
