Real Estate Registration Requirements in Maharashtra: Do You Need to Register with RERA?
When developing and marketing flats in a real estate project, it is crucial to understand the requirements for registering the project with the Real Estate Regulatory Authority (RERA). In the case of a project involving 10 flats in 237 sq.m of land area, is RERA registration mandatory or not?
Key Points to Consider
Section 3 of the Real Estate Regulation and Development Act 2016: This section mandates that any project involving development and sale of more than 8 units or over 500 square meters must be registered with RERA. Land Area Requirement: Projects with a total land area less than 500 square meters and fewer than 8 units are exempt from RERA registration in Maharashtra. Project-Specific Rules: Maharashtra RERA (MAHARERA) regulations have been updated to remove the condition of 8 or more units, focusing instead on land area as the key factor.Based on these points, let’s explore the specific scenario and the applicability of RERA registration:
Scenario: 10 Flats in 237 Sq.m Land Area
Scenario Overview: You have a project involving the development and sale of 10 flats on a 237 sq.m plot of land.
Analysis:
Land Area: The land area (237 sq.m) is below the threshold of 500 sq.m.
Number of Units: The number of units exceeds the threshold of 8 units.
According to the Real Estate Regulation and Development Act 2016, any project that meets either of the two conditions must be registered with RERA:
The area of land proposed to be developed exceeds 500 sq.m. The number of apartments proposed to be developed exceeds 8.In your case, while the land area is below 500 sq.m, the number of units (10) is above the threshold of 8, making RERA registration a necessity.
Update on RERA Registration in Maharashtra
Earlier Guidelines: Prior to the recent update, projects with 8 or more flats required RERA registration, irrespective of the land area. However, this has been modified.
New Guidelines as of 9 June 2023:
According to Circular No. 25A/2023 issued by MAHARERA, the requirement for exemption from RERA registration now focuses solely on the land area:
Projects with a land area below 500 square meters are exempt from RERA registration, regardless of the number of flats or units.
This clarified that your project with a 237 sq.m land area, while involving more than 8 units, does not require RERA registration.
Conclusion: In your specific case of a project with 10 flats on 237 sq.m land, RERA registration is mandatory due to the number of units exceeding the threshold. Recognizing and complying with these regulations ensures legal compliance and protects both developers and buyers.