After the central Real Estate (Regulatory & Development) Act, 2016 came into force in May 1, 2017; Maharashtra is considered as one of the first RERA notifying states and the rules under the state Act is established as Maha RERA. Now under the Maha-RERA co-promoters will also have to maintain separate account to deposit 70% of the sale progress derived from the home buyers. The Maharashtra Real Estate Regulatory Authority (RERA) has notified a clause for the real estate co-promoters with an objective of restraint the fund diversion.
Any person or firm related to the project promoter through any agreement or arrangement is liable to share total revenue or total area, will be treated henceforth as co-promoter of the project. This will also include land owners, who work in an agreement with the builder to jointly construct a project.
The agreement with the promoters will decide the accountabilities of such co-promoters; they will be at par with the promoter of the project for any withdrawals from the allotted bank account. Such Individual or organization should submit a form B of Maha RERA rules, 2017.
The regulator of Maha RERA notification declares that co-promoters are those people who are related with the project development thorough any agreement or arrangement of the promoter. These people are designated to a share of the total area developed in the realty project. Such agreements should distinct the share of the co-promoters and ac copy of the same should be uploaded on the regulators’ portal during the time of project registration.
With the booking land prices, most of the developers are seen coming up with the joint development ventures. Such joint development agreements are materializing in an extensive proportion in Mumbai and Pune. Under these agreements, developers land into a deal with the landlords to jointly develop land parcels in exchange of a direct payment and a share in the proceeds of the complete construction.
According to the Maharashtra state notification Act, “The sale proceeds to these individuals or organizations should not be considered as cost of the project and withdrawn from designated bank account merely by the virtue of this arrangement.”
“West Bengal will soon finalize its respective RERA rules. Market will witness an upsurge in the sale volume with the RERA implementation as people willing to buy property in to Kolkata want to stalk the market change after state RERA declaration. With RERA implementation much-awaited positive buying sentiment will be drawn nearer, as the consumers won’t have any headache related to project deliverance and project quality,”- said West Bengal RERA expert Mr. Mahesh Somani.
– LNN(Liyans News Network)