What Happens if You Don't Register under MAHARERA? Consequences Explained
Non-registration under MAHARERA can lead to severe consequences. This article explains the penalties, legal actions, and other implications of non-compliance in detail.
MAHARERA (Maharashtra Real Estate Regulatory Authority) is a regulatory body that was established to regulate the real estate sector in Maharashtra. The authority was set up to ensure transparency and accountability in the real estate sector, which had been plagued with malpractices for many years. The MAHARERA Act, 2016, mandates the registration of all real estate projects and agents with the authority. Non-registration under MAHARERA can have severe consequences, which we will discuss in this article.
Consequences of Non-Registration under MAHARERA:
Penalties for Builders and Developers:
The MAHARERA Act, 2016, mandates that all real estate projects must be registered with the authority. If a builder or developer fails to register a project, they may face penalties, which can be up to 10% of the project's total cost. Additionally, the authority can also revoke the registration of a project, which can lead to the cancellation of the project altogether.
Non-registration under MAHARERA can also lead to legal actions against the builders and developers. The aggrieved parties, such as buyers or sellers, can approach the authority and file a complaint against the builder or developer. The authority can then take legal action against the builder or developer, which can include fines, imprisonment, or both.
Implications for Buyers and Sellers:
Non-registration under MAHARERA can also have implications for buyers and sellers. If a buyer purchases a property that is not registered under MAHARERA, they may not have the legal right to seek redressal in case of any disputes. Similarly, if a seller sells a property that is not registered under MAHARERA, they may face legal action and penalties.
Non-registration under MAHARERA can also have other implications, such as the inability to advertise the project, difficulty in obtaining financing, and negative impact on the reputation of the builder or developer.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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