Difference between MOFA Act and RERA Act

In development projects, it is important to ensure that the quality of the product being delivered by a developer to the allottees is good and durable. If any defects arise within a given period, the law forces the developer to use quality material and resources in construction. In Maharashtra, Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act 1963 (MOFA), provided a remedy for structural defects. The Real Estate (Regulation and Development) Act, 2016 (RERA) has made the provisions far more stringent for the developers and beneficial to the flat buyers.




 MOFA Stands for Maharashtra Ownership Flat Act (MOFA)

 RERA Stands for Real Estate Regulatory Authority (RERA) Act

 This Act came into force from 6th Sept 2015.

 This Act came into force from 1st May 2016. 

MOFA covered only structural defects in a building or any defective material used.

However, RERA Covers structural defect or defect in workmanship, quality, provision of services or any other obligation as per Agreement for Sale.

 The time period also changes from 3 years under MOFA

 The time period also changes from 5 years under RERA.

 Registration is not Compulsory for Developers and Promoters.

 Registration is Compulsory for Promoters and Developers.

 Under MOFA, if any defect in the building or material used is brought to the notice of the developer within a period of 3 years from the date of handing over the possession of the flat by the developer to the customer, the developer has to

a)   rectify the same, if rectification of such a defect is possible, without any further charge being levied on the customer;

b)   if it is not possible to rectify the defect, then the developer would be required to pay reasonablecompensation as is determined by the competent authority.

 Under RERA, in case of any structural defect or any defect in workmanship, quality or provision of services or any other obligation of the Promoter as per Agreement for Sale is brought to the notice of the Promoter within a period of 5 years from the date of handing over possession of the flat to the allottee

a)   the Promoter has to rectify the defects within 30 days, without any further charge to the allottee;

b)   in case the Promoter fails to rectify such defect within the agreed timeline, the aggrieved allottee would be entitled to receive appropriate compensation in the manner as provided under the Act.

According to the MOFA, carpet area is defined as balcony included and the net usable area was permissible.

According to the RERA, carpet area is defined as the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

 Not required to register marketing agents.

 Required to register marketing agents with RERA Authority.

 Registration of the project is not required.

 Registration of the project is compulsory before any advertisement or receipt of payment.

 It contains Insurance of Building.

 It contains Insurance of Building and title

(sec 17).

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