MahaRERA brings changes in Procedure for Transferring or Assigning Promoters Rights and Liabilities to a Third Party

The Maharashtra’s Real Estate Regulatory Authority, MahaRERA, has brought some changes in the process of transferring a promoter’s rights and liabilities to a third party. These changes have been made due to repeated demands from the builder’s communities to amend these rules. A circular was notified by the MahaRERA Authority on 8th November, ordering for an immediate effect of these changes.
The previous version of the provision stated – “The promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining written consent from two-third allottees, except the promoter, and without the written approval of the Authority.”
These restrictions have not been completely lifted however, they have been modified for a few conditions.
New amendments                             
The promoters from now onwards shall not require these approvals for changes in their shareholdings or organization that does not affect the obligations with respect to the allottees. The promoters from now on will also not require these approvals for conversion of the promoter entity of –
  1. Partnership Firm into LLP / Private Limited Company or
  2. Conversion of Private Limited Company or unlisted Co. to an LLP or otherwise
  3.  Proprietorship change by succession to legal heirs
Cases where the promoter wishes to transfer his rights and liabilities to a third party, the following procedure shall be followed –
The promoter shall have to apply to MahaRERA with the consent of two-third allottees as on the date of application in the project to seek permission to transfer its rights and liabilities to a third party. The promoter shall have to write to the Secretary of MahaRERA on - secy@maharera.mahaonline.gov.in. On receipt of such application, the secretary shall initiate action through the legal wing who would take necessary steps to obtain approval of MahaRERA, which may include scheduling a hearing. MahaRERA shall thereafter pass an order within one month of filing of the application, of either granting approval to such application for transfer or reject such application for transfer.
After receipt of the approval and within seven days of completion of the transfer, the new promoter shall then apply for necessary corrections in the existing registration details. The required supporting documents should also be uploaded by the new promoter.
While making the application for correction, the new promoter shall upload a registered undertaking stating that they shall comply with all the obligations under agreement of sale executed by the previous promoter with respect to the Allottees of the project and has assumed all the obligations of the previous promoter under the Act, on thewebsite of MahaRERA.
These requirements of procedures introduced by the MahaRERA shall be followed with an immediate effect starting from 8th November 2017.
The Real Estate Regulatory Authority of Maharashtra, MahaRERA, has among all the states done most number of registrations of ongoing projects. A total of around 13,000 projects have been registered by the Authority so far. 

For More Visit: www.rerafiling.com


Comments

Post a Comment

Popular posts from this blog

RERA Karnataka to appoint private entity to find out unregistered projects in the state

Image
KRERA is planning to appoint a private entity to identify unregistered project in the State. The private entity firm will find out the ongoing projects and new launches which are not registered in RERA yet. KRERA has issued tenders for invitation of application for appointment of consultancy. The private entity will be submitting a detailed report to the authority by conducting ground level survey for identification of unregistered projects. “We are planning to execute the project on a trial basis for a month,” said P Sunil Kumar, secretary, RERA. RERA was using the plan sanction certificates issued by BBMP as preliminary information and was planning to send the surveyor to the address for physical verification. “We will scale up the project with more effective tools and expand it to the rest of Karnataka gradually,” said Kumar.  For More Visit: www.rerafiling.com
Read more

How can Real Estate Agents work with RERA?

Image
The Real Estate ( Regulation and development ) Act to come into force in India on 01 May 2017.  Real estate agents are the nerve of real estate industry.They are the mediators facilitating transactions between builder and buyer. Section 9 and 10 of act covers real estate agents. Under  RERA provisions , all brokers are mandatory required to get registered with the concerned state-level regulatory authorities. Real estate agents will be given a registration number by the authority which will be valid for 5 years and will be quoted in every transaction facilitated by him.  The act states that only registered are allowed to function in the real estate market. RERA puts into loop all real estate brokers dealing in under construction projects.  Along with registration, real estate agents are also captured in penalty circle under RERA Regime.  Real estate agents will be penalized if they will falsely represent any information regarding the project to buyers.The penalty will extend
Read more

RERA Bihar - No registration of on-going projects without RERA number

Image
In order to prohibit builders to pass on the ownership to the buyers by registering the incomplete projects with the registration department, Bihar Real Estate Regulatory Authority (RERA) has asked the state registration department not to register any ongoing projects without RERA registration number. According to Afzal Amanullah,  Bihar RERA   Chairman “The registration of incomplete flats or apartments put the real estate buyers in a very disadvantaged position as the developers refuse to complete their obligations once the registration was done. Therefore, we have requested the registration department not to register incomplete projects and the projects which don’t have RERA number.” July 31 st , 2018 is the last date to register ongoing projects with RERA Bihar with a late fee of Rs. 4 lakh or 400% of the registration fee, whichever is higher. For more visit: www.rerafiling.com
Read more