Buying a home is one of the biggest financial decisions most people make. Yet, many buyers sign booking forms or pay token amounts without fully understanding the MAHARERA rules that are meant to protect them.
The result?
Delays, legal confusion, stalled projects, and years of stress.
If you’re planning to book a flat – whether under construction or ready possession – these MAHARERA rules are non-negotiable to understand.
Index
What is MAHARERA and why it matters to buyers
MAHARERA was created to:
- Regulate real estate projects
- Ensure transparency from builders
- Protect home buyers from unfair practices
In simple terms, MAHARERA puts legal accountability on builders but only if buyers know how to use it.
MAHARERA Rules Every Home Buyer Must Understand
Rule 1: Project registration is mandatory
Any residential project must be registered with MAHARERA if:
- Land area exceeds 500 sq. meters or
- More than 8 apartments are being built
What buyers must check
- Project has a valid MAHARERA registration number
- Registration is active, not expired
Never rely only on:
- Builder brochures
- Verbal assurances
- Sales agent promises
Always verify the project on the official MAHARERA portal.
Rule 2: Builder cannot change plans without buyer consent
One of the strongest protections under MAHARERA:
👉 Builders cannot alter layout plans, amenities, or specifications without buyer approval.
This includes:
- Flat size
- Number of floors
- Common amenities
- Parking arrangements
If changes are made without consent, buyers have legal grounds to challenge the developer.
Rule 3: 70% of buyer money must be used for the same project
Before MAHARERA, builders often diverted funds to other projects.
Now:
- 70% of collected money must be kept in a separate bank account
- Funds can only be used for land cost and construction of that project
This rule is designed to:
- Reduce project delays
- Prevent stalled developments
- Protect buyer investments
Still, buyers should track construction progress not just trust compliance.
Rule 4: Possession date is legally binding
Once a possession date is declared and registered:
- The builder is legally bound to deliver on time
If possession is delayed:
- Buyers can claim interest compensation
- Or opt for refund with interest
This applies even if:
- Delay is “common” in the market
- Builder gives excuses later
The date mentioned on MAHARERA registration matters more than marketing promises.
Rule 5: Carpet area must be clearly defined
Under MAHARERA:
- Flats must be sold based on carpet area, not super built-up area
Carpet area means:
- Actual usable space inside the flat
- Excludes walls, balconies, and common areas
This prevents:
- Inflated pricing
- Confusing area calculations
- Misleading comparisons between projects
Always check:
- Carpet area mentioned in the agreement
- Price per sq. ft. is calculated correctly
Rule 6: Builder is responsible for defects (5 years)
MAHARERA mandates:
- 5-year defect liability period
If structural or workmanship issues appear within 5 years:
- Builder must fix them at no cost
- Within 30 days of complaint
This includes:
- Structural cracks
- Water leakage
- Poor construction quality
This rule is powerful but only if buyers raise complaints formally.
Rule 7: Agreement for sale must be registered
Before paying a significant amount:
- A registered Agreement for Sale is mandatory
This document should clearly mention:
- Total price
- Possession date
- Carpet area
- Payment schedule
- Penalties for delay
Avoid paying large sums based only on:
- Allotment letters
- Booking forms
Where buyers still make mistakes
Despite MAHARERA protections, buyers often:
- Don’t verify registration details themselves
- Rely fully on brokers or builders
- Skip reading MAHARERA disclosures
- Ignore possession timelines until it’s too late
MAHARERA protects informed buyers, not careless ones.
What every buyer should do before booking
Before you sign or pay:
- ✅ Verify MAHARERA registration
- ✅ Match brochure claims with portal details
- ✅ Check possession date carefully
- ✅ Understand refund and penalty clauses
- ✅ Keep screenshots and documents
These small steps can save years of stress and legal trouble.
The bottom line
MAHARERA has significantly improved buyer protection but it is not automatic insurance.
The law works best when buyers:
- Verify information themselves
- Ask the right questions
- Don’t rush under pressure
Before booking a flat, understanding MAHARERA rules is not optional it’s essential.