Nagpur: In a groundbreaking move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) is set to implement a grading system for housing projects across the state. This initiative aims to empower homebuyers in filtering out unprofessional developers while providing them with a better understanding of project suitability and quality, media reports said.
However, some analysts express concerns that highly graded projects may exploit the system by charging significantly higher prices than the prevailing market rates.sell my house for cash riverside
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According to media reports, the grading process is scheduled to commence between October 2023 and March 2024. Initially, all projects registered from January 2023 onwards will undergo grading. Subsequently, the authority plans to establish a matrix for grading promoters as well. The first round of grading results is expected to be announced on April 20 next year.
The grading system, automatically generated through MahaRERA’s IT solution MahaCRITI, evaluates various factors. These include a project overview, technical snapshot, financial details, and legal snapshot. The system considers the promoters’ compliance track record, legal litigations, project finance quality, amenities, the status of statutory approvals, booking percentage, financial and legal encumbrances, and audit certification, among other criteria. Such information is typically inaccessible to homebuyers or rarely provided by builders.
The reports further said that the introduction of the grading system aims to assist homebuyers in making more informed decisions. By considering factors like financial risk, legal risk, technical risk, and timely completion risk, potential investors can better understand the projects they are considering. MahaRERA clarifies that project grading does not guarantee an absence of issues but can instill confidence in homebuyers. Global examples of successful grading systems in Singapore, Australia, and Dubai have inspired this move by MahaRERA.
MahaRERA has invited public suggestions and objections regarding the grading system. Stakeholders and the general public can provide their feedback on the proposed framework until July 15. The regulator aims to incorporate diverse perspectives to ensure the system’s effectiveness and fairness.
The introduction of a grading system for real estate projects by Maharashtra RERA marks a significant step toward empowering homebuyers. By considering multiple factors and providing transparent information, this system enables buyers to make more informed decisions. While concerns exist regarding potential price disparities, the aim of the grading system remains focused on enhancing consumer protection and transparency within the real estate sector.
