MahaRERA Form 5: Filing Process, Benefits, and Role in Real Estate Transparency

The real estate sector has undergone a major transformation since the implementation of the Real Estate (Regulation and Development) Act (RERA). MahaRERA, the Maharashtra arm of this act, enforces transparency and accountability in real estate projects. One critical document in this process is MahaRERA Form 5.

If you are a homebuyer, builder, or stakeholder in the real estate market, it is essential to understand what Form 5 in MahaRERA entails.

What is MahaRERA Form 5?

MahaRERA Form 5 is an annual audit report that developers must submit for their registered real estate projects. Certified by a chartered accountant (CA), this document ensures financial transparency.

Form 5 shows how funds have been collected, allocated, and spent on a project. It acts as a checkpoint to verify that developers comply with the law and that buyers' investments are being used responsibly.

Importance of Form 5 in MahaRERA

Form 5 plays a significant role in ensuring accountability. Here is why it is important:

• Transparency: It provides a detailed financial summary of the project, allowing homebuyers to trust the builder.
• Accountability: Developers must disclose how funds have been used, promoting responsible practices.
• Compliance: Filing Form 5 is a legal requirement, ensuring the project adheres to MahaRERA regulations.
• Buyer protection: It reassures buyers that their money is not being misused.

Key components of MahaRERA Form 5

Form 5 contains the following details:

• Project name and registration number: Each registered project must include its unique MahaRERA ID for easy identification.
• Funds collected and used: The form specifies how much money has been collected from buyers and how it has been spent.
• Escrow account details: Developers must declare the balance in the escrow account and explain withdrawals made during the year.
• Progress of the project: It includes updates on the construction milestones achieved and pending work.
• Compliance certification: A CA certifies that the details in the form are accurate and comply with MahaRERA rules.

Filing guidelines for Form 5 in MahaRERA

Filing Form 5 is a systematic process. Here is how it is done:

1. Hire a Chartered Accountant (CA): A certified CA registered with MahaRERA must prepare and certify Form 5.

2. Gather financial data: Developers need to collect all financial records for the year, including:

• Bank statements.
• Payment receipts.
• Invoices for construction and development expenses.

3. Update escrow account details: The CA ensures that at least 70% of the collected funds have been deposited into the project’s escrow account.

4. Prepare the form: The CA prepares Form 5, ensuring all data is accurate and complies with MahaRERA rules.

5. Submit Form 5 online: The completed form is uploaded to the MahaRERA portal before the annual deadline.

Compliance rules for MahaRERA Form 5

To file Form 5 successfully, developers must:

• Maintain accurate records: Every financial transaction must be documented, including expenses and receipts.
• Follow escrow account rules: At least 70% of the collected funds must remain in the escrow account and be used only for project-related expenses.
• Meet filing deadlines: Developers must file Form 5 annually to avoid penalties or project de-registration.
• Hire an independent CA: The chartered accountant must be unbiased and ensure the report reflects the actual financial status of the project.

Why MahaRERA Form 5 matters to homebuyers

For homebuyers, MahaRERA Form 5 offers reassurance. It ensures:

• Funds are secure: Your money is used only for your project and not diverted elsewhere.
• Timely updates: The report gives you a clear picture of the project’s financial health and progress.
• Legal protection: MahaRERA’s strict rules ensure that developers comply with ethical practices.
• Transparency in real estate: Access to Form 5 helps you make informed decisions before investing in a project.

How home loans play a role in MahaRERA-registered projects

Buying a home in a RERA approved project is a smart choice. These projects follow strict guidelines, ensuring safety and transparency. If you are short on funds, a home loan can bridge the gap.

Home loans offer financial flexibility, making it easier to own your dream home in a RERA-compliant project. By securing a loan, you not only invest in a safe property but also gain access to timely financial support for your purchase.

Bajaj Housing Finance offers convenient home loan solutions tailored to diverse needs. With Bajaj Housing Finance, you can enjoy:

1. High loan amount: Secure a home loan of up to Rs. 15 crore* to bring your dream home to life.

2. Low interest rates: Enjoy interest rates starting 7.99%*  p.a., and EMIs as low as Rs. 722/lakh*.

3. Quick approval: Get approved within 48 Hours* of applying – sometimes even sooner.

4. Flexible repayment tenure: Choose a repayment term of up to 32 years for comfortable EMIs.

5. Simple application: Take advantage of doorstep document collection for a smooth process.

6. Balance transfer facility: Move your existing home loan and get a top-up loan with better terms.

With Bajaj Housing Finance Home Loan, you can make your dream of owning a home come true.