The Real Estate (Regulation and Development) Act 2016 — commonly known as RERA — brought plotted developments under its regulatory ambit, mandating that developers register projects with the respective state authority before commencing marketing or accepting bookings. In Maharashtra, this authority is MahaRERA.
For a plotted development to fall under RERA's jurisdiction in Maharashtra, either of two thresholds must be met: the total land area of the layout exceeds 500 sq mt, or the project comprises more than 8 plots. Most commercial plotted layouts easily meet both thresholds.
Under MahaRERA registration, developers are required to disclose: the sanctioned layout plan, NA conversion orders, encumbrance certificates, proposed infrastructure details, possession timelines, and the RERA registration number — all of which buyers can independently verify at maharera.mahaonline.gov.in.
Before purchasing a plot in any layout, buyers should: (1) Verify the RERA registration number directly on the MahaRERA portal, (2) Confirm that the 7/12 extract for the land shows NA zone designation, (3) Review the layout plan approved by the local authority, (4) Check for litigation or encumbrances through the EC (Encumbrance Certificate), and (5) Engage an independent advocate for title opinion.
One critical protection RERA provides buyers is the escrow mechanism — developers are required to deposit 70% of buyer funds collected into a designated escrow account, which can only be drawn down for actual construction expenses. This reduces the risk of fund diversion that plagued pre-RERA developments.
Possession timelines committed at the time of RERA registration are legally binding. If a developer delays beyond the committed date without buyer consent, the buyer has the right to seek a refund with interest, or continue with the project and claim compensation.
Buyers are strongly advised to read the RERA registration documents — particularly the Schedule of Payment, Disclosure Documents, and the Sale Agreement — carefully before signing or making any payment.
