MahaRERA has made the information about the flats sold public
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed builders to publicly disclose if a particular apartment has been booked or sold. This has happened after receiving various complaints about illegal multiple transactions of flats.
“To avoid the same flat being allotted to multiple buyers, this step was essential to provide the specific details as soon as the booking was confirmed. The builders would also have to mention if the flat was mortgaged,” said the RERA committee.
According to real estate market experts, builders only issued a letter of allotment to the customer, confirming that the flat was booked. Due to this, the flat could have been resold to any other buyer without the first buyer knowing about it. The flat could also be mortgaged to financial institutions, in this case, neither the first nor the second buyer would know about this.
There are several instances of selling one property to many in an aim to make more money. For this to stop, the buyers also need to be vigilant.
To stay safe from such fraudulent activities, the buyers who looking to buy a house in Mumbai and Pune can check the RERA website and see if the project has building approvals or is registered. The purchaser should check if the building is mortgaged for a construction loan. The customer can also insist on a release from the lender for the property in question. It is also advisable to do a thorough search to check for mortgages.
If more than 10% of the value of the flat is being paid, then the purchaser should register the agreement. To encourage the buyers to register, stamp duty on an allotment letter could be 1% of the price.
The main aim of RERA was to reduce such practices. The act urges developers to upload information about the flats sold on the RERA website. Such illegal activities need to stop as they affect the buyer’s confidence and disrepute the whole sector.
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