RERA in Maharashtra - What Every Property Buyer Needs to Know

One of the most crucial financial safeguards established by the MahaRERA legislation is the ability to properly fund a buyer’s home. Generally, buyers do not have a clear understanding of this provision of the Act. It requires developers to open a separate project-specific escrow account and deposit into it all sums (including booking fees, progress payments and additional amounts paid to the buyer) received from buyers of a particular project, within a period of 60 days from the date received by the developer. Therefore, all of the funds / payments received by the developer on behalf of the buyer in connection with the buyer’s purchase of an apartment in a particular project must remain in that project’s escrow account. Additionally, the developer may only withdraw from the escrow account funds for the construction expenses of the particular project. Prior to the statutory enactment of RERA, somewhat commonly builders would use moneys received from the sale of an apartment in Project A to purchase land for Project B, and therefore leave Project A underfunded and not completed. The creation of the 70% escrow provision in RERA makes this unlawful. The monthly payments you make on your apartment are confined solely to your apartment.

2. The 10% Cap on Advance Payments:   
Under the Real Estate (Regulation and Development) Act, no developer shall request from a buyer an advance deposit greater than 10% of the total property price as an advance payment for any property prior to entering into a valid and binding purchase agreement with the buyer. In the past, developers were known to collect approximately 20% to 30% of purchase price prior to executing an agreement, often without any legal documentation. Now this practice is no longer permitted, and any developer requesting more than 10% prior to executing and registering a purchase contract has violated the law.

3. Mandatory Possession Date in the Agreement:   According to the Real Estate (Regulation and Development) Act (hereafter referred to as RERA) a signed Agreement for Sale must include an exact schedule of the possession date. The possession date in the Agreement must correspond to the possession date given by the builder in the MahaRERA project registration portal, and it becomes binding on both parties once the Agreement is signed.

If the builder fails to deliver possession according to the schedule, you have two options available to you under Section 18 of the RERA: you can choose either the withdrawal option, where you can withdraw from the project and receive the full amount of money you paid together with interest (calculated at the State Bank of India’s (hereinafter referred to as SBI) MCLR+2%) for each month from your first payment until you are refunded; or you can choose to stay in the project and receive interest at the same rate for every month of delay until you receive possession.In a major December 2025 ruling by Manoj Saunik (MahaRERA Chairperson), he clarified that if an extension is given to a builder for the project’s overall completion date by MahaRERA, you are still entitled to receive interest on your deposit for the time of delay, as per Owner’s Agreement. Thus, your rights will rely upon your Agreement for Sale, not on the blanket regulatory extension granted by MahaRERA.

4. A 5-Year Structural Defect Warranty:    

The Developer must correct all Structural Deficiencies: Within five years from the completion date, any and all deficiencies in structure, workmanship, leaks and poor quality (collectively “Deficiencies”) on the home, as reported by you to the Developer will be repaired at no cost to you by the Developer. The Developer is obligated to respond within thirty (30) days of your report of a Deficiency to determine whether there is a valid Deficiency, and if so, to repair the Deficiency at no cost to you. This Protection is significant because it protects you from the poor construction quality that may reveal itself after moving in.

5. No Changes to Sanctioned Plans Without Buyer Consent:  

 A developer must obtain the written consent of two-thirds of the purchasers who have previously purchased a unit before he may modify the approved layout, floor plans, or specification of a common area for a particular project. As a result, builders cannot change an entire building after collecting money, either by eliminating certain amenities or reducing the amount of common space.