3rd party to need allottees' consent

If a developer wishes to transfer or assign his rights of a project to a third party, he will need two-third consent of the allottees before doing so. He will also have to inform MahaRERA on the same. The authority came out with a ruling on the same this month, giving more power to home buyers and preventing developers from running away or shirking responsibility. The new developer too will have to fulfill all promises made by the previous one.

The new rule reads, "In accordance with Section 15 of the Real Estate (Regulation and Development) Act, 2016, the promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, and without the prior written approval of the Authority."

On receipt of such application, MahaRERA shall then pass an order within a month either granting approval or not. The rule is relaxed in cases where the company is changing from a partnership to a private limited company.