MREAT Ruling Empowers Homebuyers: Refunds Allowed Even Without Registered Sale Agreement

Buyer Intent and Documented Consent Take Priority Over Legal Formalities

In a landmark decision set to impact homebuyers across Maharashtra, the Maharashtra Real Estate Appellate Tribunal (MREAT) has ruled that a registered agreement for sale is not mandatory for claiming refunds or seeking relief under the Real Estate (Regulation and Development) Act (RERA). The tribunal clarified that what truly matters is the documented intent and agreed terms between the buyer and the developer—not the registration status of the agreement.

Turning Point: The Panvel Project Case

The judgment emerged from a dispute involving a residential project in Panvel where a homebuyer had booked a property in 2013 and paid over ₹26 lakh. Due to delayed possession and the absence of a registered agreement, the buyer initially received no relief from MahaRERA in 2020. However, the MREAT reversed the decision in 2024 and ordered a full refund with interest—emphasizing substance over documentation formalities.

Key Takeaways from the MREAT Verdict

1. Essence Over Evidence

• The tribunal noted that mutual consent, terms, and documented communication are more critical than formal registration.
• Booking applications, MoUs, and email exchanges can be valid forms of agreement under RERA if they clearly show mutual agreement.

2. Section 11(3) Obligations Strengthened

• Developers must clearly state possession timelines and provide regular construction updates.
• Failure to adhere to these duties is a violation of RERA—even if a sale agreement hasn't been registered.

3. No Room for Arbitrary Forfeiture

• The tribunal reiterated that RERA does not support forfeiture of booking amounts or advances simply due to non-registration.
• One-sided forfeiture clauses were deemed unenforceable under the Act.

Why This Matters to Homebuyers

The decision significantly strengthens consumer protection under RERA, especially for those who made advance payments but were denied registration due to delays or non-cooperation from developers. It confirms that:

• Intent and mutual agreement matter more than legal formalities.
• Buyers can now seek relief based on credible alternative documents.
• Developers can no longer use registration loopholes to escape accountability.

Ultimately, the ruling aims to restore fairness by ensuring that technicalities don’t undermine legitimate homebuyer rights in Maharashtra.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific concerns, please consult a qualified legal expert or relevant regulatory authority.