News: Maharashtra Weighs Holding Back 20% of Home Price-19-08-2026
The Maharashtra government plans to stop developers from collecting the full price of a property before a project reaches final completion registration. Under the proposal, a developer could collect up to 80% of the total consideration when the Agreement for Sale (AFS) is executed, with the remaining 20% payable on completion and final registration.
Revenue Minister Chandrashekhar Bawankule said in a video posted from his X account that developers would be allowed to take not more than 75% to 80% at the agreement stage, and the remaining 20% at final registration. He said the state plans to amend the Registration Act and introduce final registration, so that money is no longer collected on registration with no assurance that construction will be completed. The measure is meant to safeguard flat buyers and cut their financial exposure during construction.
At present, Section 13(1) of the Real Estate Regulatory Act (RERA) Act, 2016 bars a promoter from accepting more than 10% of the cost of an apartment, plot or building as advance or application fee without first entering into and registering a written Agreement for Sale. MahaRERA’s FAQs clarify that this holds even if a buyer voluntarily offers more.
However, neither the Act nor MahaRERA sets a ceiling on the total a developer can collect during construction, as long as payments follow the registered agreement and other applicable provisions.
According to state government officials, the change addresses a long-standing concern of buyers of under-construction homes, who may pay a substantial part of the cost well before possession. Under the proposed framework, the buyer would retain at least 20% until final registration.
Officials said the proposal should not be read as a rule that applies immediately. Its wording, applicability and implementation will depend on the legislation the state introduces and gets approved in the assembly.
