Mandatory Registration of Agreement: MahaRERA’s Directive for Buyer Protection

Introduction: The Real Estate (Regulation and Development) Act, 2016 (RERA) has ushered in a new era of transparency and accountability in the real estate sector. One of the crucial provisions under RERA, implemented by the Maharashtra Real Estate Regulatory Authority (MahaRERA), is the mandatory registration of the agreement between the buyer and the promoter. This registration becomes obligatory once the buyer pays an amount exceeding 10% of the property value to the promoter. In this article, we will explore the significance of this directive and the protections it offers to buyers in the real estate market.

Understanding MahaRERA’s Directive on Agreement Registration: As per MahaRERA’s guidelines, once the buyer pays an amount in excess of 10% of the property’s total value to the promoter, the agreement between the two parties must be registered. This registration ensures that both parties are legally bound by the terms and conditions of the agreement, providing clarity and safeguarding the interests of the buyer.

Importance of Agreement Registration:

1. Legal Sanctity: The registration of the agreement grants it legal sanctity, making it a valid and enforceable document in case of any disputes or discrepancies.
2. Binding on Both Parties: Once registered, the agreement becomes binding on both the buyer and the promoter, ensuring that both parties are held accountable for fulfilling their respective obligations.
3. Buyer Protection: Registration protects the buyer’s investment and interests by providing legal recourse in case of any breaches or deviations from the agreed terms.
4. Transparency and Clarity: Agreement registration promotes transparency by clearly outlining the rights, responsibilities, and obligations of both parties, leaving no room for ambiguity.

Process of Agreement Registration: The process of registering the agreement involves the following steps:

1. Drafting the Agreement: The buyer and the promoter draft the agreement, detailing the terms and conditions of the property transaction.
2. Stamp Duty Payment: The agreement is then printed on stamp paper of the requisite value, as per the stamp duty rates applicable in the state.
3. Executing the Agreement: Both parties sign the agreement, indicating their acceptance of the terms mentioned therein.
4. Submission for Registration: The registered document is submitted to the relevant authorities within the stipulated timeframe, along with the necessary registration fees.

Consequences of Non-Registration: Failure to register the agreement can have severe repercussions:

1. Legal Validity: An unregistered agreement holds no legal value and cannot be used as evidence in case of disputes.
2. Financial Loss: Non-registration can lead to the loss of legal protection and make it difficult for the buyer to claim their rights or seek remedies in case of any issues.

Conclusion: MahaRERA’s directive on the mandatory registration of agreements once the buyer pays more than 10% of the property value to the promoter is a significant step towards buyer protection and promoting transparency in the real estate sector. Buyers are advised to adhere to this directive to secure their interests and ensure a hassle-free property buying experience. By registering agreements, both buyers and promoters can foster trust and accountability, thereby transforming the real estate market into a more secure and consumer-friendly domain.