MahaRERA eliminates penalty fees for booking cancellations.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has given homebuyers grounds to rejoice by revising penalty amounts for cancelling a booking. The cap has been established at 2% of the entire cost of the unit price, which will be subtracted before the booking payment is refunded. Continue reading to learn about the new fees!
Homebuyers should be pleased with the Maharashtra Real Estate Regulatory Authority’s (MahaRERA) decision to restrict the penalty rates for terminating flat reservations. In a few recent instances evaluated by the Authority, it was discovered that developers impose greater fees on homeowners. To minimise such disagreements, the Authority has ruled that the developer may impose a fee of up to 2% for cancelling a booking.
What are the new cancellation fees for buyers?
In August 2022, MahaRERA issued a decree stating that the developer cannot penalize the whole money due to booking cancellation. The penalty amount is determined by the number of days reserved. The rule states that homebuyers would not be penalised if they cancel within 15 days of booking. Furthermore, just a percentage of the unit’s cost will be taken between 16 and 30 days, 1.5 percent between 60 and 61 days, and two percent after 61 days.
Why has MahaRERA changed the cancellation fees for homebuyers?
According to Section 18 of the Real Estate (Regulation and Development) Act of 2016, MahaRERA received six complaints from purchasers in August 2020 requesting a full refund and interest. The concerns were founded on the fact that the developer of Kalpaturu Avana was unable to meet the deadline for the project. The purchaser called the developer to cancel the reservation and requested a full refund. According to the Letter of Intent between the developer and the homebuyer, a 10% fee will be charged in the event of a booking cancellation.
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