By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane – MMR | November 2025
Why Section 3 Matters to Every Homebuyer Today
Before any developer in Maharashtra can market, advertise, open bookings, or sell flats, the project must be registered with MahaRERA.
This requirement stems from Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA), which exists to protect buyers from premature launches and unapproved projects.
Understanding what needs to be registered—and what is exempt—helps buyers and agents make safe, compliant decisions.
1. When a Project Must Be Registered
Under Section 3(1) of the Act, a real-estate project must be registered with MahaRERA before any sale or marketing activity if any one of the following conditions applies:
A) The land being developed exceeds 500 sq.m.
Any development over 500 square metres requires registration.
B) More than 8 apartments are proposed
If the project has more than eight units, it must be registered, regardless of plot size.
C) The project does not have an Occupancy Certificate (OC)
Any ongoing or under-construction project without a valid OC must be registered before selling further inventory.
D) Larger projects released in phases
Each phase is treated as a separate real-estate project and must have its own MahaRERA registration.
These conditions are directly derived from Section 3 and apply throughout Maharashtra.
2. What May Be Exempt from MahaRERA Registration
Exemptions are limited and apply only when all qualifying criteria are adequately met.
A) Area below 500 sq.m. AND not more than 8 apartments
Both conditions must be satisfied together.
B) Projects that already have a valid OC
If the competent authority has issued an Occupancy Certificate, registration may not be required for the remaining units.
C) Pure repair or renovation work without new saleable units
If no new apartments are created and no sales are involved, the activity may not require registration.
D) Sale of land without development obligations
Raw land sales without development responsibility generally do not fall under the definition of a “real-estate project.”
(Plotted developments with infrastructure obligations do require registration.)
Buyers should carefully verify any exemption claim.
3. Situations Where Registration Is Still Required
These are common areas where confusion arises. Unless a strict exemption applies, the following typically require registration:
1. Redevelopment projects that involve selling new flats to outsiders
Once new saleable inventory is offered, registration becomes mandatory.
2. Additional floors, wings, or FSI utilisation creating new units
New construction that adds apartments generally requires registration (often as a new phase).
3. Pre-launch teasers or “expressions of interest”
RERA prohibits marketing or advertising before registration, regardless of whether money is collected.
4. Any project under construction without OC
Without OC, a project cannot claim exemption.
These rules ensure transparency and prevent misleading promotions.
4. Penalties for Selling Without MahaRERA Registration
Violating Section 3 is a serious offence.
Under the Act:
A) Penalty up to 10% of the estimated project cost
As per Section 59(1).
B) Additional penalties or imprisonment for continued non-compliance
As per Section 59(2).
C) Buyer remedies under the Act
Depending on the situation, buyers may seek:
- refund
- interest
- compensation
These safeguards create a high level of accountability for promoters.
5. Why MahaRERA Registration Protects Buyers
A registered project provides transparent access to:
- approved and sanctioned plans
- promoter details
- land title information
- carpet area disclosures
- timelines and possession dates
- specifications and amenities
- quarterly progress updates (for active projects)
- the project’s regulatory status (registered, lapsed, withdrawn)
For any under-construction purchase in 2025, checking MahaRERA registration is an essential due-diligence step.
Explore More – MahaRERA Knowledge Hub
What is MahaRERA and Why It Exists (2025 Edition)
https://thanerealestatenews.com/maharera-knowledge-hub-what-is-maharera/
About the Author
Arosh John is a leading Thane-based real-estate expert and the Founder of John Real Estate (MahaRERA Reg. No. A51700001835). With deep experience across the Mumbai Metropolitan Region, he specialises in RERA-compliant transactions, residential advisory services, villa investments, and consumer-focused real-estate education. As Editor-in-Chief of Thane Real Estate News (TREN), he is recognised for delivering fact-checked, regulation-aligned insights that help buyers, investors, and professionals navigate Maharashtra’s evolving property market with clarity and confidence.
Disclaimer
This article is for general informational purposes only. Readers should verify details independently on the official MahaRERA portal and consult qualified professionals for legal or financial guidance.
