MahaRERA To Launch Project Grading System To Enhance Homebuying Experience

MahaRERA’S project grading system aims to empower homebuyers with transparent insights into real estate projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) had suggested last year, a project grading system in order to help homebuyers make an informed decision. That plan may soon see the light of the day, as MahaRERA is expected to launch the grading system soon.

The grading will be based on four key parameters—technical, financial, legal, and project overview; and will evaluate projects every six months in a bid to keep homebuyers aligned with the construction progress. As a part of this process, all projects launched from January 2023 onwards will be graded.

However, since this is still a pilot project, MahaRERA is expected to first provide project information/analysis without assigning a grade to the project. This information would enable homebuyers to evaluate if the project is on the right track; the actual grades could take a few more years to be rolled out.

Industry experts, however, also feel that a few more parameters should be taken into account in order to provide a holistic overview.

Some of the key parameters are as follows:

Construction Quality: Assessing the track record of the developer in terms of construction quality, materials used, and adherence to building codes and regulations.

Environmental and Sustainability Factors: Considering the project’s impact on the environment, its compliance with sustainability standards, and the incorporation of energy-efficient measures, waste management systems, and green building practices.

Track Record of Developer: Assessing the reputation and past performance of the developer, including timely completion of previous projects, compliance with regulatory norms, financial stability, and adherence to customer commitments.

Customer Feedback: Incorporating feedback from existing customers of the developer or similar projects to assess customer satisfaction, and after-sales service, and address any potential issues.

– Ritesh Mehta, senior director and head (North and West), residential services and developer initiative, JLL India

Promptly updating grades assigned to each project on MahaRERA’s website, explaining how each parameter is assessed and graded, ensuring that the website’s interface is user-friendly enabling homebuyers to check grades with ease, and an effective feedback mechanism for homebuyers to raise concerns or grievances related to project evaluations should be implemented to make this grading system more robust and effective. Additionally, engaging competent third-party agencies for these audits will make them more authentic,” adds Ravi Shankar Singh, managing director, of residential transaction services, at Colliers India.

“MahaRERA could also take initiatives to educate buyers on how to interpret these grades and reports, helping them understand what these evaluations mean for their investment. There should also be a clear and fair process for developers to appeal their grades if they believe the evaluation was not accurate or fair. MahaRERA could consider incentives for projects that achieve high grades, such as faster approval processes or recognition in MahaRERA publications, to encourage quality and compliance,” suggests Prashant Sharma, president, NAREDCO Maharashtra.

Developers are optimistic about this move, however, there are a few concerns, “The process of information seeking from developers for this rating should be minimalistic in its philosophy, as developers are already providing a vast amount of data for RERA registration. An ideal way would be to integrate the data requirement in one place rather than two separate data requirements. It should also be mandatory for every developer to display the project rating prominently along with the RERA registration number,” suggests Harmohan Sahni, CEO, Raymond Realty. “Overall, the sector will benefit from this proactive approach, which fosters responsible practices and builds trust between buyers and developers,” concludes Manju Yagnik, senior vice president, NAREDCO Maharashtra.

Uttar Pradesh Real Estate Regulatory Authority Passes 5 Orders To Safeguard Homebuyers’ Interests

UPRERA has asked realtors to sell housing units only on the basis of carpet area and register projects with the same name as recorded in the sanctioned map.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. It has directed real estate developers to sell housing units only on the basis of carpet area and has also asked them to register their projects with the same name as recorded in the sanctioned map. Another order is to do with the inclusion of names of co-allottees in homebuyers’ complaints.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The RERA Authority has also directed real estate developers to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance. This is similar to a MahaRERA order that has been in force since August last year.

Hindustan Times – your fastest source for breaking news! Read now. ALSO READ: Real estate sector will contribute 15% to the GDP and will reach a market size of $1 trillion by 2030: Puri It has also made it mandatory for the real estate developers to prove their title on the land on which they propose to develop a real estate project.

1. DEVELOPERS MUST MAINTAIN THE SAME NAME FOR PROJECT BRANDS AS MENTIONED IN THEIR MAPS

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has ordered real estate developers to maintain the same name for project brands as mentioned in their maps approved by local authorities and registered with RERA to avoid confusion among homebuyers.

UP RERA said in a statement that the promoters need to register their projects with the same name as recorded in the sanctioned map and the names of towers and blocks must also be the same as in the sanctioned map.

“RERA had to issue these directions because in the wake of differences between the name of the projects and the towers registered with it and the names in the OC (occupancy certificate) or CC (completion certificate), it was finding difficult to ascertain the completion status of the projects as also to decide the promoter’s application for closure of the project accounts,” it said in a statement.

“It was also observed that promoters were using project brand names which were different from the names registered with RERA and this was creating doubts amongst the existing and prospective home buyers. Therefore, to address such anomalies, RERA has now directed the promoters to market the projects with the same name as registered with RERA,” it added.

2. HOMEBUYERS MUST INCLUDE NAMES OF CO-ALLOTTEES IN THEIR COMPLAINTS

UPRERA has asked homebuyers to include the names of co-allottees also in their complaints. It observed that in some cases the complainants had not included the co-allottees as co-complainants and the RERA Benches had disposed of the complaints after hearing the respective parties which in such cases meant hearing only one of the allottees.

“… UP RERA has decided that the name of the co-allottee shall henceforth be included as co-complainant in the complaints filed by the allottees. Necessary facility is being provided on the portal for this purpose,” UP RERA said in a statement.

It said it has observed that joint allotment of houses or shops is a common practice in which husband and wife, father and son, brother and sister and other blood relations are co-allottees and there are cases where a person other than blood relation, such as partner, and sometimes more than two persons are co-allottee.

“Their interests do not necessarily coincide always and disputes between such co-allottees or co-owners do sometimes arise. The absence of the name of the co-allottee in the complaint lodged in RERA is a lacuna due to which resolution of complaints, execution of orders and further proceedings takes more time than required,” UP RERA observed.

UP RERA has created a facility on its portal where a complainant can file such an application online using his dashboard, it added.

3. UPRERA TO TRAIN NEW AND EXISTING REAL ESTATE AGENTS

The state RERA authority has said that it will train new as well as existing real estate agents across the state and will provide them certificates. It said that it will start a special training and certification program for agents where they will be taught the provisions of RERA Act and UPRERA rules. This is similar to a MahaRERA circular issued last year that had made it mandatory for real estate agents to undergo training and appear for an exam.

4. UP RERA ASKS PROMOTERS TO PROVIDE QR CODE WITH PROJECT DETAILS TO HOMEBUYERS

UPRERA has also asked real estate developers in the state to provide project registration certificates embedded with QR code to existing and prospective homebuyers.

“The registration certificate includes relevant details of the project, including its name, name of the promoter, registration number with details of month and year, its duration, including the start and completion date, the project and the promoter addresses,” it said in a statement.

“The QR code is also loaded with the important conditions of registration like the obligation of the promoter to deposit 70 per cent of the amount realized from the allottees and all the moneys raised through project finance, in a separate bank account for being utilized only to cover the cost of construction and that of the project land,” it said.

UP RERA has directed the promoters to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance, it said.

“The homebuyers can scan the QR code of the certificate using their mobile phones and see the details of the project, including details relating to the land, approvals, quarterly progress report, etc, on the web portal of the authority. The project registration certificate is being issued in Form-C,” it added.

5. UP RERA DIRECTS HOUSING PROJECT DEVELOPERS TO SELL UNITS ON CARPET AREA BASIS

UPRERA has directed real estate developers to sell housing units or apartments as per carpet area only. As per the provisions of the RERA Act and pursuant to other legal agreements and contracts, there is no justification of ‘Super Area’, UP RERA said in a statement.

The sale of apartments on this basis will be considered illegal and according to the provisions of RERA Act, buying and selling of apartments is legal only on the basis of carpet area, it said in a statement.

“There is no abbreviation or definition of Super Area in the RERA Act. It is indeed necessary for allottees to consider Carpet Area as the actual area of the unit or apartment and pay the promoter according to this area,” UP RERA Chairman Sanjay Bhoosreddy has said.
For an agreement for sale between a promoter and an allottee, a model agreement for sale has been provided on the UP RERA portal. This model agreement for sale is also based on carpet area. In this way, selling apartments or units on the base of ‘Super Area’ is contrary to the provisions of the RERA Act, according to the statement.

“Hence, promoters must ensure the sale of units according to the Carpet Area only. Violation of this provision may cause legal action,” the UP RERA added.

A few weeks back, Forum for People’s Collective Efforts (FPCE), a pan-India homebuyers’ association had suggested that a unit within the housing ministry be set up to monitor the functioning of all state real estate regulatory authorities (RERAs).

UP RERA Mandates Consistent Project Naming Across All Documents

In a significant move aimed at enhancing transparency and reducing confusion among homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has mandated that promoters must use consistent naming for their projects across all official documents and marketing materials. This directive, issued on March 16, requires that the project names on maps sanctioned by development authorities and those registered with RERA remain the same.

The decision comes in response to discrepancies observed between the names of projects and towers as registered with RERA and those mentioned in occupancy certificates (OC) or completion certificates (CC). Such inconsistencies have made it challenging for UP RERA to verify the completion status of projects and process applications for the closure of project accounts.

UP RERA’s statement highlighted that promoters were marketing their projects under brand names different from those registered, leading to confusion among potential and existing homebuyers. To rectify this issue, promoters are now required to ensure that the names of projects, including towers and blocks, align with those recorded in the sanctioned map and RERA registration. The authority also addressed a common issue where development authorities sanction maps in the name of entities other than the landowners.

According to the RERA Act, promoters must hold title over the project land, necessitating that maps be sanctioned in the name of the landowner. Development authorities are urged to sanction maps accordingly and ensure that project registration applications with RERA include identical particulars to those in the sanctioned map.

Sanjay Bhoosreddy, Chairman of UP RERA, has called upon planning authorities and promoters to adhere strictly to these guidelines. This initiative is part of UP RERA’s ongoing efforts to solve problems faced by allottees and stakeholders in the real estate sector. By ensuring consistency in project naming, UP RERA aims to eliminate confusion among allottees regarding the actual condition of projects, thereby fostering a more transparent and trustworthy real estate market.

This directive is expected to significantly impact how projects are marketed and registered in Uttar Pradesh, bringing much-needed clarity and confidence to homebuyers navigating the real estate landscape.

Source: https://rprealtyplus.com/news-views/up-rera-mandates-consistent-project-naming-across-all-documents-114508.html

UP Replicates Maharashtra’s Real Estate Policies: All About 3 Key MahaRERA Decisions Implemented as Pilot

Uttar Pradesh has adopted three important policy decisions by the Maharashtra Real Estate Regulatory Authority, or MahaRERA, including mandatory QR code for each real estate project’s information; mandatory training and certification for agents; option to deregister non-viable projects subject to conditions.

These are among a host of decisions the MahaRERA has taken the lead, which have a pro-homebuyer long-term impact on the real estate sector. As a result, there is higher transparency in Maharashtra’s real estate sector and also makes developers accountable for their decisions as well as actions. The successful outcome of homebuyers benefiting from the decisions has led other states to adopt MahaRERA’s policies.

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has decided to implement three key policies of its Maharashtra counterpart. The mandatory display QR code along with all project advertisements has been in force in Maharashtra since August 1, 2023. MahaRERA tracks all advertisements across platforms, initiating punitive action against erring developers. Due to the QR code system, homebuyers get comprehensive project information in one click.

In January last year, the MahaRERA had issued a circular making it mandatory for real estate agents to undergo 20 hours of training and appear for an examination. This is another decision, now also applicable in Uttar Pradesh. An agent plays a crucial role during a property sale and is a link between the homebuyer and developer. Hence, it is important to understand legal provisions pertaining to an immovable property as well as regulatory affairs.

Starting January 1, 2024, all agents in Maharashtra cannot conduct business without this certificate. Recently, the MahaRERA cancelled the licences of 13,785 agents registered back in 2017. After the fourth exam conducted for agents, there are more than 10,000 certified agents in the state now.

The third decision to come into force in UP is to cancel a project’s registration if it becomes unviable. The MahaRERA has allowed builders to deregister their projects subject to certain conditions that protects the rights of homebuyers and other investors. In case of a project becoming unfeasible or a change in plan due to regulations or legal disputes, construction comes to a standstill. Such a situation leaves homebuyers and investors in the lurch.

In the interest of all stakeholders, opportunity is given to a developer to deregister a project only after they have met certain criteria, including holding a hearing, as per a circular issued on February 10, 2023. Apart from UP, other states have also shown their willingness to replicate MahaRERA initiatives – standardised agreement for sale, allotment letter, establishment of micro-control room for compliance with regulatory provisions, submission of promoter’s DIN number along with an affidavit detailing promoter’s previous performance as well as other directors involved in the project, appointment of a retired additional collector for compensation-related recovery warrants, grievance cell for homebuyers, reconciliation forum to resolve disputes between homebuyers and developers, suo motu penal action against projects printing ads without MahaRERA registration number and QR code, ‘MahaRERA Grading Matrix’ or grading of real estate projects from April, publication of consultation paper to maintain construction quality, guidelines for senior citizen housing among others.

Source: https://www.news18.com/india/up-replicates-maharashtra-real-estate-policies-all-about-3-key-maharera-decisions-implemented-as-pilot-8817678.html

RERA Certification now a must for all agents in UP

UP RERA will start a training and certification programme for real estate agents in April and allow only agents it certifies to operate from next year. Prior certification will be mandatory for new agents while the ones already registered will have a year to take the course and get a certificate, failing which their registration will be cancelled. Officials said this will help to bring transparency in the real estate sector and boost the credibility of agents, two areas that need serious regulatory intervention to make the process of buying property easier.

“At present, there are more than 6,700 registered agents and their training and certification is essential to bring transparency and credibility in the real estate sector,” Sanjay Bhoosreddy, UP RERA Chairman, said.

Bhoosreddy said the regulatory authority will organise batches of three-day training programmes on the RERA Act, 2016, its provisions and compliance. Agents will have to take an examination after that, and certificates will be issued post-evaluation. The first phase of the training will commence in Lucknow. All real estate agents have to register on RERA portal for the certification programme.

Source: https://timesofindia.indiatimes.com/city/ghaziabad/rera-certification-now-mandatory-for-all-agents-in-up-ghaziabad/articleshow/108358396.cms

More developers filing timely quarterly reports after strict warning: MahaRERA

The Maharashtra Real Estate Regulatory Authority’s (MahaRERA) strict action against erring developers violating RERA rules have resulted in developers filing the quarterly progress reports (QPR) on the MahaRERA portal on their own, the authority said in a statement.

The quarterly progress report (QPR) provides quarterly updates on project status to home buyers and prospective investors about the way the project will be developed. It is imperative that all developers registered under the RERA update the QPR on time. However, even after notices on strict actions, a sizable number of developers don’t update their QPR page on the MahaRERA portal.

The MahaRERA had taken stringent action against developers including serving notices on suspending their projects in January 2023 when the ratio was 2 out of 746 developers (0.03%) complying with MahaRERA. In June 2023, the number improved with 333 out of 633 developers (52.6%) following the rules mentioned under the RERA Act and filing QPRs on time.

“In order to closely and effectively monitor these regulatory provisions, MahaRERA has implemented a financial quarter-based project progress reporting system from the first quarter of the projects registered from January 2023. MahaRERA has also taken action to suspend direct registration of projects that do not submit quarterly forms,” mentioned Ajoy Mehta, chairman, MahaRERA, according to media reports.

MAHARERA Collabs with ASCI to Identify Non-Compliant Real Estate Developers

In a significant move towards enhancing transparency and accountability in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MAHARERA) has entered into a collaboration with the Advertising Standards Council of India (ASCI). The partnership aims to identify and address non-compliance issues among real estate developers, reinforcing regulatory measures and ensuring adherence to established standards.

The collaboration between MAHARERA and ASCI is designed to scrutinize advertising content and promotional materials used by real estate developers. By leveraging ASCI’s expertise in advertising standards, the initiative seeks to identify instances of non-compliance with regulations and ethical standards within the real estate advertising space.

The partnership is expected to empower regulatory authorities to take corrective actions against developers found in violation of advertising norms. This proactive approach aligns with MAHARERA’s commitment to creating a fair and transparent real estate market by holding developers accountable for accurate and responsible advertising.

As the real estate sector continues to evolve, the collaboration with ASCI provides a mechanism to ensure that consumers receive accurate and reliable information about property offerings. The initiative also contributes to the overall credibility of the real estate industry by addressing concerns related to misleading advertising and promoting a culture of responsible marketing practices.

Stakeholders, including homebuyers, real estate developers, and industry observers, will closely monitor the outcomes of this collaboration and the impact it has on promoting transparency in the real estate advertising domain. MAHARERA’s partnership with ASCI is a noteworthy step in enhancing consumer protection and reinforcing ethical standards within the real estate sector in Maharashtra.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/maharera-collabs-with-asci-to-identify-non-compliant-real-estate-developers/51155

MahaRERA Simplifies Registration Process

In a significant move, Maharashtra Real Estate Regulatory Authority (MaharERA) has streamlined the registration process for builders with over 50 housing units. The initiative aims to simplify the administrative procedures, making it more convenient for large-scale developers to comply with regulations.

Under the new guidelines, builders overseeing projects with more than 50 housing units can now complete their registration at their doorstep, eliminating unnecessary bureaucratic hurdles. This progressive step by MaharERA aligns with the government’s ongoing efforts to promote transparency and efficiency in the real estate sector.

The simplification of the registration process is expected to benefit both builders and homebuyers. Builders will experience a more streamlined and efficient registration, saving time and resources. On the other hand, homebuyers can anticipate quicker approvals and enhanced accountability from developers.

This move comes at a crucial time for the real estate industry, as it navigates challenges and adapts to changing market dynamics. By reducing bureaucratic complexities, MaharERA aims to boost the overall growth of the sector, attracting more investments and fostering a conducive environment for real estate development.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/maharera-simplifies-registration-process/50975

Centre asks states to follow ‘Gujarat model’ for recovery of dues in case builders defy Rera orders

Amid rising instances of builders not complying with orders passed by Real Estate Regulatory Authorities (Rera), the housing ministry has advised state governments to follow the “Gujarat model”, which has an effective recovery mechanism and appoints officers under the state laws for retrieving the dues. Gujarat Rera has appointed two officers vested with all the powers for execution of recovery warrant orders.

It has also notified detailed execution proceedings, which provides for arrest and detention. There have also been suo moto proceedings by the authority issued in some cases for attachment of the property which has ensured promoter paying the penalty with interest. The ministry has also advised states to designate additional district magistrates or additional collectors as “revenue recovery officers” for enforcement especially in districts where the pendency of such cases is high.

Recovery warrant orders are issued against errant developers for not completing a project. These warrants are forwarded by the regulators to collectors for attachment of properties and recover the dues. The issue of non-compliance of orders passed by regulators came up at a recent meeting chaired by Union housing secretary Manoj Joshi. As per the minutes of the meeting issued on Tuesday, the ministry has written to states along with the recovery model being implemented by the Gujarat Rera. It sought an update on action taken on the advisory as well.

FPCE, an umbrella homebuyers group, which had studied the recovery model of different RERAs and suggested the adoption of Gujarat model, Tamil Nadu and Maharashtra, welcomed the Centre’s move. “Homebuyers pan India are suffering as regulatory authorities are unable to get their orders enforced. Homebuyers are running pillar to post to get a refund even though they have orders in their favour for refund from authorities. Now since the ministry has written to states, we hope state regulators will adopt the recommendations to give relief to homebuyers,” said Abhay Upadhyay, president of FPCE.

As per the minutes of the meeting, Abrar Ahmed, principal adviser to UP RERA cited how they have recovered over Rs 800 crore in 4,000 recovery certificates from builders whose projects were launched from 2012 to 2014. He suggested that a provision may be made in Rera, similar to the provisions existing in the income tax law wherein if the recoveries are not possible from assets of the company or the project, the regulator can pass a special order holding the director accountable for the payment of the dues.

Source: https://timesofindia.indiatimes.com/india/centre-asks-states-to-follow-gujarat-model-for-recovery-of-dues-in-case-builders-defy-rera-orders/articleshow/107467716.cms

MahaRERA To Launch An Improved Portal In February

In a move to enhance transparency and efficiency in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) is gearing up to launch its new regulatory portal, MahaRERA Complaint and Regulatory Integrated Technology Implementation (MahaRERA CRITI), in February 2024. The upgraded website aims to simplify the home purchasing process for both homebuyers and developers, offering a more user-friendly experience.

Streamlined Grievance Redressal:

MahaRERA CRITI will facilitate easy navigation for users, providing a streamlined grievance redressal process. The portal will include a dedicated section called ‘project health summary,’ offering critical project-related information, including the current status, to existing and potential customers. This feature aims to enhance transparency in ongoing projects.

Efficient Document Upload for Developers:

The new platform will also simplify the document submission process for developers, who are required to file quarterly reports (Forms 1, 2, and 3) and an annual report (Form 5). This enhancement is expected to make the submission of statutory information smoother and more efficient.

Temporary Unavailability of Current Website:

During the transition to the new system, the current MahaRERA website, which has been operational for five years since the implementation of the RERA Act in the state, will be temporarily unavailable for a brief period due to technical reasons.

Improved User Experience:

The initiative to upgrade the website aligns with MahaRERA’s commitment to adapt to the evolving property market scenario. The new features aim to offer a more user-friendly experience, catering to the needs of homebuyers and developers alike.

The MahaRERA-CRITI website is expected to be fully operational by the end of February, heralding a new era of efficiency and transparency in the real estate regulatory landscape.

Source: https://timesproperty.com/article/post/maharera-to-launch-improved-portal-in-feb-blid6650