MahaRERA Mandates Developers to Set Deadlines for Delivery of Amenities in Housing Projects
Developers often entice homebuyers with promises of facilities and amenities at the time of booking of an apartment. However, once they move in, homebuyers face uncertainty regarding the delivery of these promised amenities. To eliminate the lag, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued an order requiring developers to specify a delivery date for these amenities in the Agreement for Sale’s Annexure-I.
This document, which will be part of the Agreement for Sale registered with the government, makes it binding on developers to deliver the promised amenities as committed to the homebuyers. These amenities may include swimming pools, tennis courts, badminton courts, theatres, clubhouses, gymnasiums, table tennis areas, squash courts, giant chess areas, gardens, senior-citizen zones, jogging tracks, juice bars, children’s play areas, among others.
Larger housing projects are often spread over multiple phases, with many amenities only becoming available upon the completion of the final phase. To ensure that residents in the earlier phases are aware of the availability of these amenities, developers are now required to provide phase-wise, date-specific information.
Recognising the importance of this provision for homebuyers, MahaRERA has made it non-negotiable. An order to this effect has been issued and is applicable to all registered housing projects with immediate effect. Previously registered Agreements for Sale will remain non-negotiable regarding multiple provisions that have broader implications, such as the force majeure clause, defect liability period, carpet area of the apartment, Conveyance Deed, Allotment Letter, and parking provisions. Additionally, it is now mandatory to provide comprehensive details of the facilities and amenities in Schedule-II of the Agreement for Sale.
In the event of any significant revisions, changes, corrections, or relocation of the specified facilities and amenities or public areas, developers must obtain approval from MahaRERA. Without such approval, any changes will be deemed invalid and illegal. Furthermore, developers must obtain the consent of two-thirds of the residents for changes related to the location, number of families, or amenities. In other words, developers will not be able to make unilateral changes.
At the end of April, MahaRERA published a draft order on the subject, inviting suggestions and opinions from various stakeholders until May 27. Based on the feedback received and discussions with experts, several new aspects have been incorporated into the final order.
It is now mandatory to provide details regarding the expected date of the Occupancy Certificate (OC) for the project, the size of the facilities and amenities, whether they are free of Floor Space Index (FSI) as per local planning body rules, and whether they are part of the project or acquired separately. Developers must also include in Annexure-I whether the proposed facilities and amenities will be provided within the building, common areas, or the layout, the proposed completion date, the proposed handover date to the society or residents’ association, and the proposed OC date.
Additionally, developers must disclose details of recreational grounds and playgrounds within the project, as declared by local planning bodies. The disclosure of lift details, including type (passenger, service, stretcher, goods, fire evacuation), capacity, and speed, will also be mandatory.
Typically, the Agreement for Sale specifies details of the housing unit, internal and external development works, payment schedules, possession dates, and penalties for default. However, it often omits information about the facilities and amenities provided in the building, common areas, or layout, as well as the size of these areas intended for the benefit of the homebuyer. As a result, homebuyers frequently find that promised amenities are unavailable after they move in. To prevent this and protect homebuyers from deceit, while enhancing developer accountability, transparency, and orderliness, MahaRERA has mandated that these details be included in Annexure-I of the Agreement for Sale.
According to MahaRERA chairman Ajoy Mehta, “This is yet another crucial decision by MahaRERA to legally empower homebuyers and safeguard their investments. Previously, MahaRERA has emphasised the rights of homebuyers concerning various important aspects of housing projects, such as parking, standardized registration of the Agreement for Sale, and Allotment Letters. Now, the uncertainty over the availability of facilities and amenities has been eliminated, as homebuyers will also have information on the timelines for these facilities and amenities, just as they have details about the apartment. This will enhance transparency during transactions. The new provisions will ensure that 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.”