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New Guidelines for Facilities and Amenities in Real Estate Projects: Insights from Circular 57/2024

27 December 2024

As part of the ongoing efforts to enhance transparency, accountability, and buyer protection in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced new guidelines through Circular Number 57/2024, issued on 30th July 2024. This circular provides crucial updates and further clarifies the facilities and amenities that promoters must disclose and implement in their real estate projects in accordance with the Real Estate (Regulation and Development) Act, 2016 (RERA).

This updated framework places a strong emphasis on clear communication between promoters (developers) and allottees (buyers) regarding the amenities and facilities available within a real estate project. It requires promoters to not only disclose but also deliver on these promises. Here are the key highlights from the circular and its impact on the real estate sector:

1. Detailed Disclosure of Amenities and Facilities

A major shift in Circular 57/2024 is the categorical requirement for promoters to provide a comprehensive list of all facilities and amenities that will be available within the real estate project. This applies to facilities in the building, common areas, or layout of the project. The types of amenities included in this list are:

• Swimming pools
• Gymnasiums
• Sports courts (e.g., badminton, squash)
• Play areas
• Parks or recreational open spaces

Promoters are now obligated to disclose the exact location, size, and timeline for completion of each of these amenities. Whether these amenities are provided with or without Floor Space Index (FSI), they must be included in the project’s approved development plans and the agreement for sale. This means that promoters can no longer make vague claims about amenities—they must be specific about the amenities they offer, where they are located, and when buyers can expect them to be fully operational.

Key Update from Circular 57/2024: The circular mandates a list of amenities but also insists on specifying their location within the project layout, the size of each amenity, and the expected timeline for their completion. This ensures that buyers are fully aware of what they are paying for, and can hold the developer accountable for any discrepancies between what was promised and what is delivered.

2. Lifts and Other Key Facilities

Another critical area addressed by Circular 57/2024 is the clear specification of key infrastructure such as lifts, which are integral to many residential and commercial projects. Promoters are required to provide detailed information about lifts, including:

• Type of lift (passenger, stretcher, service, fire evacuation, etc.)
• Capacity (e.g., number of passengers it can accommodate)
• Speed (in meters per second)

These specifications must be included in the agreement for sale and must align with the project's approved development plans. Additionally, the timelines for the installation and operational readiness of these lifts must be clearly stated. This ensures that there is no ambiguity or miscommunication between the promoter and the allottees regarding the type of infrastructure that will be provided and when it will be functional.

By addressing these details upfront, the circular ensures that developers cannot make vague promises or delay the provision of critical infrastructure, thus ensuring better transparency and buyer confidence.

3. Approved Plans and Annexures

To further enhance the transparency and accountability of real estate projects, Circular 57/2024 stresses the importance of annexing the approved development plans to the agreement for sale. The development plans that promoters submit for RERA registration must include all the amenities and facilities that were disclosed to the buyers.

Any deviations or modifications to the amenities or facilities, including changes to their location, size, or completion timelines, must be disclosed through a formal correction application to MahaRERA. This ensures that there are no discrepancies between what was promised in the sale agreement and the final delivery, safeguarding the rights of the allottees.

4. Non-Negotiable Clauses for Sale Agreements

Circular 57/2024 highlights that certain clauses related to amenities and facilities are non-negotiable. This means that these clauses must be included in the agreement for sale and cannot be modified or removed by the promoters after the agreement has been executed. The goal is to prevent any potential manipulation or misrepresentation of what will be provided in the project.

If these non-negotiable clauses are not included in the sale agreement, or if they are altered without proper approval, MahaRERA can take corrective action, including imposing penalties or pursuing further legal measures, as outlined in earlier MahaRERA orders (e.g., MahaRERA Order No. 38/2022). This ensures that developers are fully held accountable for the promises they make regarding facilities and amenities.

5. Ensuring Compliance with Local Planning Regulations

In addition to ensuring that the amenities align with the approved plans, Circular 57/2024 also underscores the importance of complying with local planning regulations. Developers must ensure that the open spaces, recreational areas, and other facilities provided in the project comply with the local rules and guidelines for community development.

By requiring promoters to comply with local planning laws, the circular ensures that projects meet legal standards and that amenities are not only physically feasible but also legally permissible under the local jurisdiction.

6. RERA Registration Compliance: A Critical Requirement for Project Approval

One of the most crucial updates introduced by Circular 57/2024 is the explicit clarification that no real estate project can seek RERA registration unless it fully complies with the guidelines outlined in the circular. This makes it clear that adherence to the guidelines is a mandatory prerequisite for project registration under RERA.

Promoters must ensure that their projects meet all the disclosure requirements, including:

• The detailed list of amenities (with their exact locations, sizes, and Timelines for completion)
• Clear specifications for key infrastructure, such as lifts
• Compliance with the approved development plans

Without meeting these requirements, developers will not be able to proceed with the RERA registration process, effectively halting the project’s marketing, sale, and legal recognition. This provision reinforces the importance of transparency and accountability in the real estate sector.

Why is RERA Registration So Important?

• Legal Compliance: RERA registration is legally required for a project to be marketed or sold. Without it, developers cannot advertise, sell, or even hand over possession of units.
• Buyer Protection: The registration ensures that buyers are protected from fraud and deceit. The transparency in the disclosure of amenities ensures that buyers get what they are promised.
• Market Credibility: RERA registration provides developers with an official stamp of credibility, enhancing the trust factor with buyers. It shows that the project adheres to all the legal requirements and is being developed in compliance with the Real Estate (Regulation and Development) Act.

What Does This Mean for Promoters?

For developers, this new requirement places an added responsibility to ensure full compliance with the detailed disclosure guidelines outlined in Circular 57/2024 before seeking RERA registration. They must:

• Revise their project plans/ Agreements to ensure they are aligned with the new regulations.
• Provide clear and accurate timelines for when amenities and facilities will be available.
• Ensure that the approved plans and sale agreements accurately reflect all amenities and facilities offered.

Failure to meet these requirements will not only result in the denial of RERA registration but could also lead to legal penalties and delays in the project’s execution.

Conclusion: Ensuring RERA Compliance with Circular 57/2024

Circular 57/2024 serves as a crucial step towards making the real estate sector more transparent, accountable, and buyer-friendly. By mandating the clear disclosure of amenities and facilities, accurate timelines, and compliance with approved plans, MahaRERA is taking a strong stance to protect the interests of allottees and hold promoters accountable.

Promoters must fully comply with these updated guidelines to secure RERA registration and avoid potential legal and financial repercussions. Non-compliance will lead to delays in project approvals and the inability to legally sell or market properties.

At ReraOne, we specialize in helping developers navigate the complexities of RERA regulations and ensure compliance with the latest circulars and guidelines. If you are a promoter or developer looking for expert guidance on how to implement the new rules from Circular 57/2024 and ensure your project’s smooth registration, contact us today for personalized advice and support.

SAMPLE DRAFT FOR REFERENCE

A) Description of common areas provided:

B) Facilities/ Amenties provided/to be provided within the building including in the common area of the building:

3. Facilities / amenities provided/ to be provided within the layout and/ or common area of the layout:

4. The size and the location of the facilities/ amenities in form of open spaces (RG/ PG etc.) Provided/ to be provided within the plot and/ or within the layout.

5. Details and specifications of the lift:

 

-By ReraOne