MahaRERA mandates deadline for delivering promised amenities in housing projects
MahaRERA notes that larger housing projects and complexes are spread over multiple phases, where amenities are given only when the project is completed
MUMBAI: The uncertainty surrounding facilities and amenities promised by builders to home buyers will soon come to an end. State housing regulator MahaRERA has issued an order making it mandatory for builders to specify a proposed date of delivery for these as well as the area they will cover in Annexure I of the sale agreement.
A press note issued by MahaRERA says that this provision, which is extremely important from the flat purchasers’ perspective, is non-negotiable, and the builder will not be at liberty to alter it.
‘During inquiry and booking a flat, builders tend to attract homebuyers with various facilities and amenities that will come along with the project,’ says the press note. ‘But after possession, the wait for these facilities and amenities is not certain. In an attempt to do away with this uncertainty, MahaRERA has made it mandatory for developers to specify the date of delivery.’
The note says that Annexure I will be part of the sale agreement registered with the registrar of stamps and registration, and this will make it binding on developers to not violate delivery of promised facilities. MahaRERA had published a draft order with a view to inviting suggestions and opinions from varied stakeholders at the end of April.
MahaRERA notes that larger housing projects and complexes are spread over multiple phases, and in such cases, amenities are given only when the project is completed. To ensure that residents in the earlier phases don’t lose out, it is now mandatory to provide a phase-wise and date-specific information of the same. ‘As this provision is of importance for the homebuyers, MahaRERA has ensured that it is non-negotiable,’ says the press note.
Previously registered Agreements for Sale will continue to be non-negotiable with regard to multiple provisions that have larger ramifications. These include the force majeure clause, the defect liability period to protect the rights of homebuyers in case of subpar or faulty construction, the carpet area of the apartment, conveyance deed, allotment letter and parking provisions. From now on, it will be mandatory for builders to provide comprehensive details of the facilities and amenities.
‘It has also been made mandatory to provide details of the expected date of the project’s Occupancy Certificate (OC), the size of the facilities and amenities, whether it is a project in itself or acquired and if they are free of Floor Space Index or not as per the rules and regulations of the local planning bodies,’ says the note.
MahaRERA Chairman Ajoy Mehta said that when advertising new housing projects, developers often promoted a variety of attractive facilities and amenities alongside the actual apartments, such as a swimming pool, badminton court, gymnasium, and senior citizens area. “In practice, the Agreement for Sale typically includes details about the price of the apartment, construction-linked payment plan, and penalty in case of a default in payment,” he said. “However, there is no mention of when the proposed facilities and amenities will actually be made available. MahaRERA has observed that many homebuyers have been affected by these shortcomings, and has taken a serious note of this issue.”
Mehta said that after providing all stakeholders ample opportunity to express their views, it had now been made mandatory to specify the delivery timeline of all the promised facilities and amenities in the Agreement for Sale. “The comprehensive details will have to be provided, and a model format has also been made available for this,” he said. “Any changes or modifications to these details will require MahaRERA’s approval. Moreover, any changes to the location or number of facilities and amenities will require the consent of two-thirds of the home buyers. In other words, builders will not be able to make changes unilaterally.”
Mehta said that this was yet another crucial decision by MahaRERA to legally empower home buyers and safeguard their investments. Previously, the housing regulator has underscored the rights of homebuyers with regard to various important aspects within the housing projects such as parking and standardised registration of the Agreement for Sale and Allotment Letter. “Now, the uncertainty over availability of facilities and amenities has been eliminated and as a result, transparency while entering into a transaction has been enhanced,” said Mehta. “The new provisions will ensure that the developers, just as they are obligated to deliver apartments within the stipulated time frame, will also be bound to provide the facilities and amenities within the specified time frame.”