The Real Estate (Regulation and Development) Act of 2016 (the ‘Central Act’) made it mandatory for each State and Union Territory to notify its own RERA regulations within one year of its enactment. Following the notification of their regulations, States started establishing their own Real Estate Regulatory Authorities (RERAs). The Maharashtra government notified the regulations and established its RERA (the 'MahaRERA') in 2017.
Violation of MahaRERA provisions by a real estate agent
Under MahaRERA, t is mandatory for every real estate agent to:-
- register himself with the MahaRERA
- maintain proper books of accounts of his real estate transactions with clients
- not facilitate the sale or purchase of a property under an unregistered planning area
- not engage itself in any unfair trade practices
- provide all the documents/information to the allottee required at the time of booking
- If he fails to register himself with MahaRERA or violates any of the provisions listed above, he is liable to pay a fine of INR 10,000 or pay a fine which can amount to 5 percent of the cost of the apartment in the RERA-registered project he transacted in
- If he violates the directives of the MahaRERA, he is liable to pay a fine which can also amount to 5 percent of the cost of the plot, building or apartment
- If he fails to comply with any order issued by the State RERA Tribunal, he is liable to be imprisoned for up to a year or pay a certain penalty everyday which can amount to 10 percent of the total cost of the apartment
Image by Punid Ramesh on Unsplash
At TEAL, we are building the next generation of property due diligence using big data analytics and machine learning. We provide reliable information about property ownership, registration status, disputes, tax compliance history and all other information that you will need to make a safe and secure property investment. To learn how TEAL can help you in your journey, visit tealindia.in.