MOFA (Maharashtra Ownership of Flats Act) and MahaRERA (Maharashtra Real Estate Regulatory Authority) are two important laws that govern the real estate sector in the state of Maharashtra.
The key differences between MOFA and MahaRERA are as follows:
- Applicability: MOFA applies only to residential properties, while MahaRERA applies to both residential and commercial properties.
- Registration: Under MOFA, developers are required to register their projects with the local authorities, while under MahaRERA, developers are required to register their projects with the Maharashtra Real Estate Regulatory Authority.
- Project Disclosure: MahaRERA requires developers to provide detailed information about their projects, such as the project timeline, approvals, and the status of the construction. However, under MOFA, developers are only required to provide basic information about the project, such as the carpet area of the flat, the price, and the possession date.
- Escrow Account: MahaRERA mandates that developers must deposit 70% of the funds collected from homebuyers in an escrow account to ensure that the funds are used only for construction and development purposes. However, MOFA does not have any such provision.
- Grievance Redressal: MahaRERA provides for the establishment of a regulatory authority and an appellate tribunal to hear complaints and grievances from homebuyers, while MOFA does not have such a provision.
In summary, MOFA is an older law that primarily deals with the sale and purchase of residential flats, while MahaRERA is a newer law that provides more comprehensive regulation of the real estate sector, including both residential and commercial properties. MahaRERA also provides greater transparency, accountability, and protection to homebuyers.
