MahaRERA directs promoters to include amenities delivery date in sale deed

In April 2024, the Maharashtra Real Estate Regulatory Authority (MahaRERA) proposed a draft order to make developers accountable for the amenities that they promise to offer homebuyers in their projects. On July 30, 2024, this order was passed by the regulatory body to make it mandatory for developers to disclose detailed information about the amenities that they would be offering as part of their project, including the date that they would hand it over to them in the sale deed. 

What acts of developers made MahaRERA pass this order?

According to an official MahaRERA statement, the regulatory body noticed that promoters in the proforma of agreement of sale as uploaded in compliance with the Act as well as agreement of sale to be executed with allottees do not mention the amenities and facilities that will be part of the project and if these are mentioned, the dates when these amenities will be available for use for the allottees and their families are not mentioned.

What does the MahaRERA order say?

As per the MahaRERA directive, it is mandatory that the amenities detailed in Annexure ‘1’ shall be the same as the list mentioned in the registration Form-A under ‘Common Areas, Facilities, and Amenities, and in Table B of Form 1 – Architect Certificate.  For any major revisions, changes, shifting or corrections in the amenities, facilities or common areas, a correction application should be submitted according to the provisions of Section 14(2) of the RERA Act. Simply put, the developer has to clearly mention the due date of the handover of the amenities to the homebuyer in the sale deed.

Vivek Rathi, national director research, Knight Frank India said, “Particularly driven by the RERA but also with participation of customer-centric real estate developers and demanding customers, the real estate development landscape has improved in a meaningful manner over the last decade. This change in industry fabric is evident in the state of affairs of this property upcycle, which is way different than the wild ways of the past upcycle. However, even these days we keep witnessing instances of disconnect between developer promise and delivery on elements of product delivery like amenities, etc. which adversely impact homebuyer experience. Defining some of such important elements like estimated date for occupancy certificate or amenities will further the cause of homebuyer protection.”

Towards a buyer-first setup

A common complaint by homebuyers is that while the apartment was delivered by the promoter, he has yet to deliver on his promise of the amenities. In June 2024, the registration of apartments measuring between 500 square foot (sqft) and 1,000 sqft accounted for 46% of all property registrations, as mentioned in a Knight Frank report. Industry experts believe that the majority of the projects offer amenities, and this number is only to be seen growing. But, what sours the real estate deal is the pain that homebuyers face when it comes to amenities. This landmark decision is expected to further safeguard buyer interests and promote transparent, efficient and compliant home-buying methods.

Gated communities by reputed developers charge a premium- a major part of which is for the amenities. Besides the premium, maintenance charges for such properties are huge. 

“When I paid the total lump sum for purchasing my flat in Seawoods, it was a factor of my flat’s total area multiplied by the per sqft rate, which includes a hidden premium for the amenities that come as part of the project. It is of utmost importance that transparency is maintained so that there is no confusion at the time of possession of the apartment about when we will be able to use the amenities,” said Ramkumar Mahadevan. 

Agreeing to this A Mahe, who has invested in a gated community in Mulund said, “There have been instances where the developer- sometimes even reputed ones (case in point is a project in Bengaluru, whose residents have filed a case with Karnataka RERA) end up not providing what they have promised, leaving the homebuyer in the lurch. With the delivery date details of the amenities provided in the sale deed and  including basic but important as type of lift and capacity it will hold, I as a homebuyer am happy with the buyer-first support offered by the MahaRERA at each and every step of home buying.”

Non-negotiable clause

The MahaRERA order directed that the clause will be incorporated as a non-negotiable clause and MahaRERA will take action if the developer fails to adhere to the directive.  This makes it very powerful and pro homebuyer who can be assured that concrete steps will be taken by the regulatory body if the promoter fails to keep up with his promise. 

Industry reactions

Developers who have to abide by the rules of the MahaRERA also have welcomed this decision, stating that it is in alignment with working towards providing transparent real estate operations. According to Prashant Sharma, president, NAREDCO Maharashtra, “As a progressive step towards enhancing transparency and accountability in the real estate sector, MahaRERA’s decision to make it mandatory for developers to specify the delivery date of amenities and the occupation certificate is a welcome move. This regulation will not only strengthen the trust between homebuyers and developers but also ensure that projects are delivered as promised. It marks a significant shift towards more consumer-centric practices, which will ultimately lead to a more robust and trustworthy real estate ecosystem in Maharashtra.”

Dhaval Ajmera, director, Ajmera Realty & Infra India said, “The MahaRERA order is a significant development in the real estate sector, providing stability and boosting the confidence of homebuyers. It requires detailed disclosure of amenities with clear deadlines, giving consumers essential information for making informed decisions. This transparency not only protects buyers’ interests but also strengthens the trust RERA has worked to rebuild within the sector.

Standardising agreements and non-negotiable clauses ensure fairness, turning promises into tangible results. As the real estate sector in India continues to grow, these reforms enhance its fundamental value, giving homebuyers the confidence they deserve when making one of life’s most significant investments.”

MahaRERA directive in detail

• According to the directive issued, it is mandatory for developers to provide detailed information of amenities provided in the common areas such as swimming pool, badminton court, tennis court, theatre, gymnasium, table tennis court, squash court, etc. 
• The home buyer should be made aware by clearly categorising whether amenities are provided by utilising free of FSI area or utilising FSI of the project under local planning rules and regulations. 
• The size and location of the amenities in the form of open spaces to be provided within the plot or in the layout should be mentioned. 
• It is the homebuyer’s right to know the proposed date of handover on which such open spaces etc., would be handed over to the common organisation of Allottee(s) or Federation of common organisations.
• Specific details of lifts that will include type of lift, capacity and speed should be made public.

Housing.com POV

The MahaRERA is one of the strongest regulatory bodies in real estate in the country, which has worked towards protecting homebuyer interests and this directive is another step in that direction that gives homebuyers confidence in the segment, thereby promoting investments.  By making it compulsory for developers to mention the amenities that are part of the project and the date when they will be handed over to the homebuyer, the MahaRERA has made it clear that equal importance will be given to amenities of a project too- seeing which most people pay a premium and invest in properties.